Work relationships can transform careers — especially when co-workers vote on pay raises.
At Squaremouth, a travel insurance comparison website, employees vote on some salary increases, according to CNN Business. Those seeking a raise can argue their cases to colleagues and, hopefully, receive their buy-in.
Transparency is at the core of this business tactic, says Squaremouth. The company has been using peer-reviewed raises since it was founded in 2003 and shares all salaries internally.
In addition to the group-vote raises, all employees receive an annual cost of living raise, based on inflation. In January, that increase was 2.1 percent. Separately, workers can receive merit-based raises. These come directly from managers and are mostly used for promotions or when employees get a new job at the company.
When employees request pay raises, colleagues typically have until the end of day to reach a verdict. All votes hold equal weight and employees must provide an explanation for their decision, which are not anonymous. To receive a raise, an employee needs to secure a majority.
Once a decision is finalized, the employee requesting a raise receives the feedback from their colleagues.
“That eliminates anyone from saying ‘no’ for a personal reason,” says marketing and sales director Megan Moncrief, adding that peer-voting is mainly for big jumps in pay.
Read the full CNBC article online here: https://www.cnbc.com/2018/11/29/squaremouth-employees-at-this-company-can-vote-on-each-others-raises.html