Pay disparities result from inconsistent practices. Standardizing pay as early as possible can help companies know how they measure up to competitors and prevent pay inequity from forming, Knopp said. “You’re giving raises, which are celebrated.” “That’s healthy, because the market’s always moving,” Knopp said.

There will “always” be an upward pay adjustment when setting up pay ranges for the first time, Knopp said.

In addition to building pay ranges and training leaders on how to talk with employees about progressing through a range, Sullivan said, part of the work is defining a philosophy around pay.

“So if they see a number or set of numbers on the website, they’re not, like, ‘Hey, what the hell?’” Much of that work is internal change management and communication around pay transparency, she said. Heather Sullivan, who took over as Astranis Space Technologies’ first permanent chief people officer in July, is only now setting up pay ranges at the company, which has around 270 employees. Companies typically establish pay bands when they hit 40 or 50 employees - around the time they start hiring middle managers, Knopp said.Ī big part of standardizing pay: employee communication.

“A lot of companies, shockingly, don’t always know if these laws apply to them,” said Kaitlyn Knopp, founder and CEO of compensation software maker Pequity.

“I bet, like, 95% of 20-person startups don’t even have a notion of compensation bands at this point,” Schulman said.

Matt Schulman, founder and CEO of compensation technology startup Pave, estimates that only one in four startups will be ready to be transparent about pay ranges by January - and that the vast majority of early-stage startups haven’t established pay ranges.But few early-stage startups crossing that 15-head threshold have an HR function, and many haven’t defined their pay ranges. 1, applies to companies that employ 15 or more workers. California’s law, which goes into effect Jan.

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