As an agency promoting progressive causes, Clarify makes every effort to live our progressive values in our own company. As part of those efforts, we emphasize doing what we can to keep employees fulfilled and treat them equitably.
Pay equity can be a thorny subject. Research has shown that the higher social cost women typically face when negotiating for a raise is a driver of a society-wide pay gap for women, even if they do ask for raises as frequently as men. Negotiation disparities are also likely a driver of society-wide pay gaps for people of color vs. white counterparts. More broadly, employers typically have much deeper knowledge of salary scales than any individual employee, and any negotiation with highly asymmetric knowledge possessed by each side is inherently less fair.
To blunt the negotiation advantage of white male employees and make as much of a dent as we can in these society-wide disparities, Clarify has developed a compensation system that is rigid, relatively objective, and 100% transparent.
You can think of the system as a three legged stool. It needs each of three legs in order to stand: grounding in performance (output), transparency about how performance translates to compensation, and feedback to employees about their progress. We adapted this system from one used by Chewse. Here’s how each of those legs works.