Ludovic (Ludo) is a software engineer at Payflip. As the first employee at Payflip, Ludo has witnessed the impact of full salary transparency from the front row. We asked Ludo how he experiences this system as an employee.

At my previous employer, I quickly became frustrated with the lack of transparency in HR matters. I didn't understand how decisions were made, so it wasn't clear where we were headed as a company. Additionally, it wasn't clear where my own salary came from. As a young, ambitious twenty-something, I felt there was no clear direction for how I could grow in my role as a software engineer.

At Payflip, it's completely different. Transparency and innovation are at the core of everything we do. This was evident from my first day. It was clear what the expectations were for me and what the possibilities were for my salary. Our salary structure is set up so that you know what you need to do to get a promotion. As an engineer, you work in a sector where hard skills and competencies are very measurable, and it motivated me immensely to see right from the start what leaps I could make in my career.

When more colleagues joined, it was enlightening (but also a bit of an adjustment, of course) to see what everyone earned. It gave me a sense of pride that I was part of an organization where openness about salaries would never be taboo. That culture of trust and mutual respect isn't so obvious, but Payflip ensures that we can take it for granted.

One of the most impressive aspects of working at Payflip is the clarity about how our salaries are structured. We have a salary grid that not only shows the basic components of the salary but also the extra-legal benefits and how these contribute to the total package. This is made visible in a way that everyone can understand, even if you're not familiar with HR terms like me. This helps everyone fully understand what they earn and why.

Payflip also encourages us to make our own choices about our salary package. Personally, I find the mobility budget the most enjoyable part of my salary package as I can use this budget to get part of my rent reimbursed. It has a big impact on my finances, and since I live close to our office in Brussels, I don't need a car at all. I would even dare to say that my choice for the mobility budget gave me the extra push to rent my own apartment.

Our culture of open feedback plays a crucial role in this story. The feedback we give each other forms the basis for promotions within our salary grid and helps us grow as young professionals. Reviews are always focused on performance, but you should never be surprised by the feedback points listed there. Due to our habit of giving open and direct feedback to each other, you should have heard these things before. During our reviews, we open the discussion about promotion and compensation at the end of the conversation. Last September, I jumped to the next level in our salary grid, and you know what? I expected it. I knew what was expected of me and had worked hard on it in the preceding months. It was nice to experience firsthand that our review process is not an empty box but actually delivers in practice.

Although I am a big supporter of our transparent salary system, it naturally also brings challenges. The objectivity of our salary grid and the criteria attached to each level can sometimes be overwhelming. At Payflip, we are ambitious, and this places a certain pressure on our shoulders to keep performing. Seeing on paper what the expectations are can sometimes reinforce that even more.

Knowing what your colleagues earn also makes you start comparing yourself to them. You know that colleague X earns more, so you expect that person to have more knowledge about a certain topic, create more impact within the team, or carry more weight on their shoulders. Those comparisons may not always be fair, but you will inevitably make them.

Also, when new colleagues join the team, it is difficult not to compare yourself to them immediately. They are classified at a certain level where the impact that person will create is the driving force behind the classification decision, but at that moment, it is still a bit of a guess whether that will actually be the case in reality. I started as the first software engineer at Payflip, so I play a significant role in knowledge sharing. Over the years, I have seen colleagues start at a higher level, and sometimes you do wonder why you might not be at that level yet.

Now, for me, the disadvantages certainly do not outweigh the advantages the system brings. Transparency about salaries is more than just openness about numbers. It is a powerful way to build a culture of trust, respect, and fairness. For me, this has led to a greater sense of connection with my work environment and my colleagues. I feel valued and respected, and that is worth its weight in gold.

What would I say to a colleague who starts with us tomorrow? Occasionally look at our salary grid and be enthusiastic about the possibilities to be found in it! It immediately gives you a clear picture of the opportunities that lie ahead without feeling like you are thrown into a negotiation race. 🚀

Andries joined the Payflip team at the beginning of 2024 as head of sales. He has 11 years of experience in various SaaS companies and has worked in both transparent and non-transparent companies regarding salaries. We asked Andries about the differences between the two systems and how he experienced the transition from a non-transparent salary culture to a transparent one.

At one of the employers I worked for in the past, there was a kind of salary transparency avant la lettre, but not necessarily with the goal of creating an open salary policy. This was a startup where all starters received the same salary, and financial incentives were not up for discussion. Since you couldn't ask for a raise, you indirectly knew what your colleagues earned, but there was no clear view of what the future could hold for you within the company.

My promotion to manager within this company came with financial compensation, but even for managers, there was a certain degree of transparency since all managers were also assigned the same salary. I became the person employees came to talk about a possible raise, which was barely discussable.

At another employer, the system was so non-transparent that it even led to some awkward situations. I remember a conversation in the kitchen where an employee with quite some seniority overheard a discussion between some junior sales colleagues who had just started. The conversation was about their opinion that they were hired at a salary that should really be considered a starter's salary. This senior employee then found out that he earned the same as colleagues who had just started. Awkward.

During my application at Payflip, I asked about the salary structures and whether there was some flexibility. Spoiler alert: there wasn't. But that was actually a good thing because it immediately became clear how consistently Payflip applies their salary policy.

Openness about salaries had always attracted me. The transition to Payflip meant not only a new job, but also a switch to a new culture. I was excited to be part of this transparent environment and to work with it myself in building the sales team.

This transition felt refreshing. Salary transparency at Payflip is not just a policy but an integral part of our company culture. In a company that values transparency highly, it feels logical that HR-related topics are openly shared as well.

That salary transparency also feels like a given within Payflip. As a result, I am not concerned with my colleagues' salaries at all. Since I am responsible for building the sales team, I, of course, know how things stand within the sales team, but don't ask me how much the colleagues from the customer success team earn.

These experiences have made me realize that there is something to be said for both types of systems.

A non-transparent system often goes hand in hand with the absence of a clear career path that employees can follow. Not everything needs to be set in stone, of course, but being able to offer perspective is a big plus that younger employees are increasingly looking for.

Moreover, a non-transparent system often leads to unfair situations and perhaps even some distrust between colleagues. An employee who creates a lot of impact but may not be the most assertive person can have a lower salary than an employee who creates less impact but is a good negotiator and dares to take bold steps from time to time. If this then comes to light, it doesn't always benefit the team atmosphere.

A transparent system, like the one we have at Payflip, can sometimes be experienced as too rigid. We are currently expanding our sales team, and it is not possible to go the extra mile in terms of compensation when you encounter a really good candidate in the recruitment process. Our salary proposal is attractive and competitive, but take it or leave it, and in doing so, we are certainly losing a good profile now and then.

Additionally, our current salary grid is not entirely aligned with new roles introduced for the first time within Payflip. I am the first head of sales, so there wasn't a framework ready to determine my place in the salary grid. Inevitably, my salary expectations influenced this, and that is exactly the opposite of what we want to achieve. We are honest about that.

Weighing all experiences and arguments, I am more a fan of a transparent system, provided that a company is ready for it. Such a transparent system doesn't work in all circumstances, for example, when there is an international component involved. You can ask yourself whether it is valuable to be able to check the salaries of foreign colleagues who live and work in a completely different context (cost of living, purchasing power, labor market...).

From its foundation, Payflip was ready to extend that openness to the extreme. This has a positive impact on the dynamics and performance within and between the various teams. Everyone knows where they stand salary-wise, which ensures clear and fair communication. This not only helps in attracting new talent but also strengthens the satisfaction and engagement of current employees.

By removing salaries from the taboo sphere, conversations about our salaries become less loaded and more focused on personal growth and development. It is this culture that sets us apart from the competition and allows us to work together as a team towards our common goals.