We have recently made some changes and commitments in HubSpot to pay for transparency. Earlier this year, we shared with all global HubSpot employees their remuneration range and as of July 13th, we will be revealing the remuneration ranges in all of our job postings across the United States. To ensure we live up to our commitment to being transparent with our employees, candidates and community, we have outlined our reward philosophy here.
During HubSpot’s 16 years, transparency has always been a core value for our business. Like ours Culture code States, exceptional transparency helps us make decisions and take ownership. From our public advertising Annual Diversity, Inclusion and Affiliation ReportTo ours Sustainability ReportOur default has always been to share where we are as a company and our areas of improvement.
With all of our growth and change in recent years, we needed to ensure our reward philosophy and the capability and clarity that accompanies it to meet the needs of our growing organization, and we needed access to the transparency that reflected it. To that end, I am excited to share what our team has been working on.
Fair payment has always been important to us. In 2018, Massachusetts passed the Wage Capital Act, Making HubSpot’s hometown one of the first states in the country to ban employers from asking potential employees what they earned in their most recent job. Instead of simply adopting this at our headquarters in Massachusetts, we decided to use local law to make a bigger change in our global approach. Instead of asking about the compensation history, we ask the candidates about the compensation expectations to ensure that the conversations around the compensation are fair and consistent.
Since states like Colorado, New York and Washington have recently moved to require companies to disclose pay ranges for their roles in those states, I suspect that legislation around compensation will move quickly from the exception to the general rule, which is a great thing. Ultimately, transparency about our pay philosophy is much more than a legal requirement. In fact, we have seen evolving legislation as an opportunity to accelerate open dialogue around compensation and promote consistency and transparent pay across the HubSpot. We have made several commitments and recent changes in our culture and recruitment process to ensure that we make a significant and long-term change from wage opacity to wage clarity, and they are as follows:
Anchoring compensation bands for one central city per country
As HubSpot continues to do Grow as a hybrid company, We decided to anchor the compensation to one pre-defined central city for each country. This means that if you have lived in New York in the past, but decide to move to Illinois, your salary will not change or be calibrated based on the move. Your compensation will be anchored in New York City, the largest city we have chosen to align compensation in the United States
This decision reflects our commitment to flexibility and mobility. Moving to another part of the country is a decision an employee should make based on what is good for his job and home, but it should not be at the expense of his remuneration.
We have been operating this way with anchoring for a large city since 2021 and we will review our ranges and approach regularly as part of our annual process.
Education and training in a stream of reward
Whether you are a new manager, an experienced leader or an individual donor, we know that everyone has a different level of understanding about reward. We noticed that within HubSpot, there was a combination of convenience levels when it came to reward flow, and it was important to create an equal playing field to help employees and managers have better conversations. This is why we have worked with our learning and development team to build both live and self-paced training modules on these topics to help everyone understand the reward beyond just the basic salary number and salary range.
We have also invented tools that will allow people to feel comfortable and be qualified to have conversations around compensation and we have put in place mechanisms that will help in psychological safety. So far, we have built a training that covers the mechanics of reward including our overall reward philosophy. We also built topic-specific training to understand salary ranges, for example, how they are determined and how they are used and how someone needs to think about where they land in the range. These are available as self-paced instruction and have both video and text that support them to suit different learning styles.
Transparent access to compensation ranges
We strive to offer fair as well as competitive compensation in our industry. This is why we take a “market-based compensation” approach using data from trusted third-party compensation sources to define consistent and competitive compensation ranges. Each range includes a minimum and maximum of remuneration and employees are paid within it based on their skills, experience, skills and other work-related reasons. Our ranges are wide in purpose, so HubSpotters have the scope and ability to increase their reward as part of their role. For example, someone who starts his career in a position may be at the lower end of the range due to his limited experience, while someone with more experience relevant to the position may receive a higher salary in the range. We also continue to focus precisely on the market and evaluate the reward each year, identifying all market fluctuations and making adjustments as needed to keep us competitive.
In March 2022, we met with all HubSpot executives to discuss reward with their team members, especially in the current reward range for their employees, to help everyone understand where they land in range and why. It was important to us that not only would we make the reward ranges visible to individual HubSpotters, but that their managers would be able to have meaningful conversations about reward and performance. Prior to these conversations, we provided guidance and tools for our managers to feel safe entering into these conversations. Their fluency in compensation can really help build the psychological safety needed to conduct conversations around compensation.
Publication of compensation ranges for all jobs in the United States
As of July 13, 2022, we will unveil compensation ranges (including relevant commissions and bonuses) in all of our jobs across the U.S. This is our first step in our multi-step approach to achieving worldwide wage transparency.
When we think of total compensation, there is much more than just your salary. This includes Benefits Such as health services and global employee assistance programs, parental benefits, tuition reimbursement, HubSpot’s capital program and the opportunity to receive restricted stock units (RSUs), and much more. To help paint a clear picture of the full reward package, each HubSpotter has access to its Total Rewards statement, which is one point for viewing the various components attached to the reward packages depending on their role and work location. What candidates and employees will be able to see now is the total remuneration range for the specific position, which includes base salary, target commission for eligible positions and annual bonus payments under the HubSpot bonus program for appropriate positions.
As we continue to build a society that future generations can be proud of, we have the opportunity to build long-term and sustainable solutions that focus on systems that drive wage transparency, which in turn help fuel inclusion and equity, especially for historically unrepresented talents. Although I am proud of the progress we have made so far, we know we have a long journey ahead of us and I look forward to re-developing our reward philosophy to ensure we are transparent with our employees, candidates and candidates. community.