Why Fair Pay is One of My Top Priorities as a Leader - Fractional Engineering Leadership

Why Fair Pay is One of My Top Priorities as a Leader

Estimated Reading Time: 5 minutes

Software engineers are known for their substantial salaries, which initially drew me to the field—far more than the idea of pursuing cardiovascular surgery, which was out of my comfort zone! When I transitioned from a small startup to a large tech company, the promise of stability and a significant salary boost was incredibly appealing. After experiencing random unpaid weeks off, the prospect of consistent paychecks and financial stability was particularly welcome.

Personal Experience: At this large tech company, I was struck by the diverse talent pool and the constant influx of new hires. However, I was completely unprepared to discover the unsettling truth about my compensation. During a mentoring session, an intern accidentally revealed their salary, which, to my astonishment, matched my own. Further investigation showed that new college graduates were starting at salaries $20,000 higher than mine, despite my additional responsibilities and experience. This revelation was not only upsetting but deeply demoralizing, leading me to question the valuation of my contributions.

Leadership Philosophy: My experiences profoundly shaped my approach to leadership, particularly regarding compensation. Struggling to achieve fair pay at a large company made me realize the limitations of trying to change how an organization values an individual’s worth. This experience drove me to prioritize transparency and fairness in compensation, principles I carried into subsequent roles, especially in startup environments.

In interviews and team assessments, I address pay disparities directly by inquiring about compensation practices. At startups, I’ve often found responses that align with my views—like annual analyses or adjustments upon new hires to ensure equity. However, in larger organizations, the solutions offered—such as aiming for promotions or navigating bureaucratic HR processes—rarely resolve underlying issues effectively. This has cemented my belief that proactive, transparent leadership is crucial in maintaining not just fairness, but also employee morale and motivation.

Advocacy and Action: One memorable experience in advocating for fair pay involved walking into the CFO’s office at a smaller company, pointing out a discrepancy on the spreadsheet, and seeing it rectified immediately—a $10,000 raise implemented with a simple check and update. This experience underscored the agility of smaller companies in addressing pay issues directly and efficiently.

In contrast, larger organizations often have more cumbersome processes. For instance, aligning compensation for two employees performing the same role once required me to write extensive justifications, navigating through layers of bureaucracy. This involved drafting detailed documents and seeking out a higher-up champion to push the adjustment through—a testament to the significant barriers that can exist in big companies when it comes to fair pay.

Conclusion: Fair compensation is more than just a number on a paycheck—it’s a testament to the value and respect an organization holds for its employees. My journey has taught me that while the path to equitable pay can vary dramatically between organizations, the need for clear, proactive leadership in this area does not. I encourage all leaders to take a hands-on approach to ensure their teams are not only fairly compensated but feel valued for their contributions. Let’s advocate for transparency and fairness in compensation practices. Remember, a truly successful team is one where every member feels respected and equitably rewarded.

Estimated Reading Time: 5 minutes

Summary:

Background: Transitioned from a startup to Amazon for better pay and stability, setting the stage for a significant career learning about compensation in tech.
Personal Experience: Discovered a $20,000 salary disparity at Amazon, which impacted morale and shaped future leadership strategies.
Leadership Philosophy: Advocates for transparent and proactive compensation practices, especially in startups where adjustments can be made swiftly and effectively.
Advocacy and Action: Describes successful efforts to correct pay disparities, contrasting simple direct actions in small companies with the complex processes in larger corporations.
Conclusion: Emphasizes that fair compensation is not just about the numbers; it’s about respect and motivation, urging leaders to advocate for transparency and fairness.

Software engineers are renowned for their substantial salaries, a fact that drew me to the field initially—beyond cardiovascular surgery, which was a bit out of my comfort zone! When I transitioned from a small startup to Amazon, the promise of stability and a significant salary boost (an exciting jump to $60,000 a year) was a dream come true. After experiencing random unpaid weeks off, the prospect of consistent paychecks and financial stability was particularly appealing.

Personal Experience: Joining Amazon, I was aware of the diverse talent pool, including Ivy League graduates and a constant influx of new hires. However, I was completely unprepared to discover the unsettling truth about my compensation. By pure chance, during a mentoring session, an intern mentioned their salary, which, to my astonishment, matched my own. Further probing revealed that new college graduates were starting at $80,000 annually—$20,000 more than what I was earning, despite my additional responsibilities and experience. This revelation was not only upsetting but deeply demoralizing. I couldn’t help but wonder: Why was my contribution valued so much less?

Leadership Philosophy: My tenure at Amazon profoundly shaped my approach to leadership, particularly regarding compensation. The struggle to achieve fair pay made me realize the limitations of trying to change a giant company’s valuation of an individual’s worth. This experience drove me to prioritize transparency and fairness in compensation, principles I carried into subsequent roles, especially in startup environments.

In interviews and team assessments, I consistently address pay disparities by asking direct questions about compensation practices. At startups, I’ve often received encouraging responses that align with my views—annual analyses or adjustments upon new hires to ensure equity. However, in larger organizations, the solutions offered—like aiming for promotions or navigating bureaucratic HR processes—rarely resolve underlying issues effectively. This has cemented my belief that proactive, transparent leadership is crucial in maintaining not just fairness, but also employee morale and motivation.

Advocacy and Action: One of my most memorable experiences in advocating for fair pay occurred at Polyvore. The process was refreshingly straightforward: I noticed a discrepancy, walked into the CFO’s office, pointed it out on the spreadsheet, and it was rectified—just like that, a $10,000 raise implemented with a simple check and update. This experience underscored the agility of smaller companies in addressing pay issues directly and efficiently.

Contrast this with larger organizations, where the process is often more cumbersome. For instance, to align compensation for two employees performing the same role, I once had to write extensive justifications, navigating through layers of bureaucracy. This required drafting detailed documents and seeking out a higher-up champion to push the adjustment through—a testament to the significant barriers that can exist in big companies when it comes to fair pay.

These experiences have taught me the importance of persistence and strategic advocacy in ensuring that all team members are compensated fairly. Whether it’s a simple spreadsheet update or a complex bureaucratic process, the goal remains the same: equitable pay for equivalent work.