Ravio

Sometimes, a founder or exec will ask their People team... "Why should we benchmark salaries?" It can be hard for People teams to hear. The People team has a hunch the company is paying too much in some roles, losing out on talent in others, or that pay gaps are only growing. So, how should they reply? Here's 3 points you can make to your execs on why benchmarking matters 1️⃣ Employee attrition is expensive. Benchmarking helps to retain talent. Unhappiness with comp is the # 1 reason why employees leave, as cited by McKinsey, Deloitte, and Pew Research Centre. Replacing an employee can cost up to 1.5-2x their annual salary, depending on their seniority and specialisation, per a study by Deloitte. Assuming engineers are 25% of total headcount and employee attrition is a modest 5%, a 500-person company in London would lose... Over £600k per year just replacing software engineers! (average P3 software engineer salary in London = £67,000, per Ravio) If you know what great pay looks like, you can retain your top talent. 2️⃣ Overpaying employees gets expensive and eats into runway. Payroll often accounts for around 70% of total operating expenses. Salary benchmarking helps to control payroll costs, which in turn will fuel sustainable business growth. For tech companies, where payroll is the largest line item on the P&L, benchmarking helps manage costs and runway. 3️⃣ Benchmarking helps to attract talent and bolster employer brands Employees want pay transparency. 98% of employees are in favour of salary disclosures. 53% would refuse to even apply for a job that does not disclose the salary range, per a recent Monster study. If 53% of people would refuse to apply for a job that does not disclose a salary range, then the candidate pool is effectively doubled just by showing one. Further, whilst building an employer brand takes time, paying employees fairly and competitively is a great way to build trust. It shows employees and future hires that a company values them and their contribution, improving retention. We break down these points, plus run through the salary benchmarking process in our recent article - link in comments. Also, what have we missed above? Let us know in the comments.

Product update: Monitor important health metrics with ease We've introduced a new dashboard in Ravio to help customers stay on top of compensation health metrics like market competitiveness, band placement, and hiring and attrition trends. Ravio customers can also quickly understand where the biggest pay and diversity gaps are across the business. Ready to level up your compensation confidence? Book a personalised demo, link below 👇

"Pay equity has challenges when the business feels it's a People-led initiative. You need the whole business bought in." Emma Baker, Head of People Operations and Reward at Zoopla, breaks down how she's getting exec and business buy-in to their pay equity initiatives. Interested in seeing the whole session? You can find the session summary and recording through the link below.

“Before Ravio, it was difficult for us to compare ourselves with the right sectors, organisations, and competitors as we are a digital tech scale-up... were we way off in the market?" If you've run a compensation review cycle in the past, you can probably relate. In this new case study, read about how Maartje Koopman, Head of People and Culture at Tiqets, ended the era of confusion and fractured trust by introducing relevant, real-time data from Ravio. End result: smoother compensation reviews, better conversations between teams, and a transformation in their compensation confidence. Link in the comments!

Compensation in the tech industry changes rapidly... How much are aged survey data and manual spreadsheets preventing you from keeping up? According to Jodi Slomp, VP People at Mollie, delayed data sets and aged compensation data were real friction points in the past. Ravio's real-time data and beautiful visualisations not only eliminate these problems, but ensure you can always stay connected to today's global compensation market. Jodi recently discussed all things reward on a recent People masterminds podcast. Read our blog post which breaks down the podcast episode for you! https://lnkd.in/gSvGGrcS

Our first Commercial team offsite 🖤 From pizza making contests, to darts tournaments, to pop quizzes on the Ravio platform and team. There was a lot of (quite?) friendly competition. And of course karaoke. Always karaoke. After such a fun few days, we're feeling grateful for the awesome team we have. And we can't wait for another quarter of supporting our brilliant customers and partners.

Ravio data has found that women earn 25% less than men on average, and even with like-for-like comparisons, there's still a 2.5% gap. Companies are making strides, but there's more to be done. It's why 86% of European tech companies are prioritising pay equity in their organisations this year. In Ravio's new blog post, we dive into brand new data of over 250 People leaders. The aim? To understand what actions are being taken to close the gender pay gap and enhance pay equity. The result? - 60% of companies have integrated pay fairness into their compensation philosophy. - 47% are conducting pay equity audits. - 48% are adjusting salaries to address disparities. Discover more about how People leaders are addressing pay equity and transparency in our blog post. Link in the comments!

"Too few European employees know how their stock options work" Today's Sifted focussed on the equity gap that exists between Europe and the US, and how European employees don't understand the value of their equity. Whilst perhaps true, it is very hard to make equity real for employees. Equity is complicated and shrouded in financial jargon. Cap tables are often lurking in spreadsheets rather than transparently made available to employees. And People and Reward teams have limited tools to know how much their equity offers are worth versus the market, or help employees model different scenarios to help them understand the future value of their equity. That's why we've built tools in Ravio that help People and Reward teams: 1️⃣ Benchmark equity compensation, so know how much equity to offer new hires and can show them in % ownership and £ value 2️⃣ Easily model the upside of employee equity in different scenarios 3️⃣ Discover how popular it is to offer equity to employees in different countries We want to help People and Rewards teams empower their employees with equity and ownership of the company they work at. To help, we've gone deep into our equity data to reveal how you can create an equity compensation plan at your startup. You can find it in the comments.

What makes a good reward strategy? How you reward people is one of the most strategic and expensive decisions you can make as an organisation. So it's important to craft a compensation and total reward strategy that both supports your business and resonates with your employees. In a recent People masterminds podcast, hosts Kristel Moedt and Eveliese Luiting discuss all things reward with guest speakers Jodi Slomp, VP People at Mollie and Lucas F. Sondelski, Director of Reward at Personio. Tune into the podcast to learn more about reward philosophy and how Ravio can help, or read our blog post which breaks this down for you! Link below 👇

Salary benchmarking is foundational to any compensation strategy. Understanding typical salaries for different job positions, job levels, and locations ensures the salaries you offer are always in line with your target percentile, and are competitive and fair compared to the wider market – whilst also being cost effective for payroll budgets. But how do you access the salary data? The old world of compensation is laden with time wasted, regrettable attrition, and risk imposed on the growth of your business. Learn more: https://lnkd.in/e3_N8jfh