Part of attracting and retaining top talent in the highly competitive tech industry is ensuring that FreshBooks’ workforce is paid both fairly and in line with the market.
FreshBooks began using PayScale in 2014. "A friend in the industry had told me about PayScale years ago. When we began looking into compensation systems, we found that other offerings were much more complicated than we needed them to be. PayScale did exactly what we needed it to do and it does it easily," said Farinha. PayScale also met FreshBooks’ criteria for scalability, crucial as the company continues to expand. “We’ve discovered it’s a really well-rounded tool and aligns with the tech industry. It’s a tool we can grow into," said Mikita.
FreshBooks’ previous compensation process didn’t allow for fast, easy access to multiple positions, making ongoing compensation reviews more time consuming than they needed to be. "PayScale covers all the job types we have at FreshBooks, plus a plethora of info on the job itself," said Farinha.
With PayScale, FreshBooks’ compensation decisions are now based on real-time data, instead of static, once-a-year salary surveys. "PayScale allows us to stay competitive and current in what we’re paying," said Mikita. "It’s easier to justify salaries to employees and internal decision makers, like finance. We can say ‘that’s what the data says.’"
FreshBooks is committed to being highly employee centric; honoring that commitment requires creating transparency around compensation. "With PayScale it’s easier to be more transparent with employees about how we determine pay. If someone is interested I can explain how our salary bands are derived. It provides them assurance on how we’re making real time decisions with respect to pay here at FreshBooks."
FreshBooks is growing rapidly, and implementing manageable, data-backed salary bands now is crucial to their ability to manage rapid growth later. "PayScale has the potential to scale with our business. If we waited to establish our salary bands when we had 1,000 people, it could be much more challenging for us," said Mikita. "Instead, we’re systematic about it. We know exactly what pay in the x percentile means, we know how to compensate employees now, and we’re ready for growth."