An Argentine software company is completely changing its attitude towards employees. 10Pines strives to be transparent and democratic, and even allows employees to set salaries to each other. Ariel Umansky decided to reject the 7% salary increase proposed in December 2020. He felt that he could not prove this to his colleagues. He wrote that, in fact, this is the second time in five years that he has refused a pay raise of 10 Pines. British Broadcasting Corporation.
Umansky explained: “I feel a little insecure because I am close to or even higher with people who I think are better than me. I consider myself a liar.
Salaries are determined three times a year at the meetings of the Argentine company. All personnel except new employees who are still in the probationary period participate. Employees (or mentors who represent them) can apply for a raise and then discuss it publicly. 10Pines is a technology company founded in 2010, headquartered in Buenos Aires, with 85 employees.
The company creates software for customers including Starbucks and Burger King, and is committed to making membership cards for customers, applications and e-commerce platforms. Every year, 50% of profits are allocated to employees.
“The key aspect of transparent wages is not knowing how much everyone earns, but knowing who earns more than anyone else. This is a hierarchy, isn’t it?” Umansky asked.
10Pines strives to establish a flat hierarchy and be as transparent as possible to employees. After a three-month trial period, new employees will participate in monthly public meetings with other members of the team, where they will make key company decisions. Make decisions about potential new customers, costs, finances, and salary. There is no CEO and no real manager in the team, although there are senior employees who are partners and are called “partners” and “masters.”
Jorge Silva, the co-founder of 10Pines and The Master, said: “Because there is no boss to decide the salary increase, power is transferred to the people. We don’t want a salary gap like the US.”
Silva said that new employees can negotiate their salaries to some extent, which may be a problem at first. In order to obtain their consent, they discussed their salaries with people with similar experience in the company. In the final dialogue about employment, the candidate met with the entire team of about 80 people and introduced him to the dynamic working methods of the team. There are no technical issues yet, but more opportunities to learn about people’s interests and the working principles of 10Pines.
“On the other hand, I used to interview someone for a job. This experience is awkward and informal. But at this stage, we have stopped the recruitment process. Even if they are geniuses, we can still feel that they will say Silva: “Create tension by not joining the team. “
10Pines calls his method socialism. It was inspired by the Brazilian company Ricardo Semler and his experience in transforming the family business Semco. He transformed it into a so-called “agile, collaborative company,” where workers are responsible for overseeing issues traditionally left to managers, which reduces staff turnover and revitalizes the company. He is in a book titled “Maverick! “Wrote in the book.
“This is our bible,” Silva said.
According to Ben Whitter, the author of the book “Human Work Experience” and the head of the HEX Organization UK coaching and employee consulting company, there are more and more such “progressive and transparent companies” in the world. Whitt said that the idea of transparent wages might be a good way to equalize conditions between men and women, adding:
“In many companies, salary is a secret, and people worry that it will be determined by the individual. In this way, it becomes transparent and credible.”
However, Whitter also found some flaws in the way 10Pines work. When you have 80 employees and twice the number of employees, this may work, but the benefits may disappear. Moreover, hiring decisions made based on meetings of all employees may harm introverts and cause “a natural bias of team thinking. People usually do not make decisions in their personal capacity.”
However, 10Pines stated that it has various programs, such as beginner programs, and believes that its overall approach can survive on a larger scale.
“We have developed a process for 12 years. For example, we started discussing salary issues when we had 30 employees, and we were worried that we would not be able to work properly when we only had 50 employees, but we have been adjusting. The process needs to be updated to maintain trust. “The company’s experienced programmer Ans Angeles Tella Arena (Ans Angeles Tella Arena) explained, adding that if the company continues to grow, it will be necessary to open another office, which will happen automatically.