Agile Compensation

Global Scrum GatheringDavid Baer@davidbaer A

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Adel

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Cél

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Albr

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Alte

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Andr

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Bach

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Bäch

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Bär U

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Bard

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Baum

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Mich

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Dipl. I

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H

Berger

Adria

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rmat

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Beutle

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Bickel P

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Info

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Blank Jeannette

, Adm

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ratio

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Blum Thom

as, Dip

l. Elektro

ing. ETH

Borer C

hristia

n, Info

rmatik

er EFZ

Böttcher A

rne, V

erkauf D

eutschland

Brand Roland, Dipl. I

nformatik

ing. ETH

Brändli Sandro, B

Sc FHO in Computer S

cience

Brandt Peter K

., Dipl. I

nformatik

er Univ.

Brettlecker G

ert, Dr. p

hil. Dipl.-I

ng.

Breu Urs, MSc ETH in Computer S

cience

Bucher Daniel, M

Sc ETH in Computer Science

Büechi Oliver, M

Sc ETH in Computer Science

Bugmann Roger, MSc ETH in Computer Science

Bühler Robin, in Ausbildung

Bühlmann René, MSc ETH in Computer Science

Burkhalter Patrick, lic. oec. publ.

Burkhart Martin, Dr. sc. ETH

Burri Nicolas, Dr. sc. ETH

Bussard Yves, Dipl. Informatiking. ETH

Bütikofer Marc, Dipl. Informatiking. ETH

Caminada Daniel, Dipl. Informatiking. FH

Catalá Prat Álvaro, Dr.-Ing.

Cheok Mervin, Informatiker EFZ

Christen Andreas, Informatiker

Clerc Olivier, MSc ETH in Computer Science

Collenberg Fabian, Dipl. Informatiking. ETH

Dammann Sven, in Ausbildung

Deller Andreas, Dipl. Informatiking. ETH

Di Chiara Miriam, Administration

Dietiker Stefan, Dipl. Informatiking. FHDreier Matthias, Dipl. Informatiking. ETHDubacher Marco, Dipl. Informatiker Univ.Erdtner Birgit, Mag.rer.soc.oecEssmann Bruno, Dipl. Informatiking. ETH

Fahrni Susi, AdministrationFaller Heiko, Diplom-Informatiker Univ.

Fleischmann Andreas, Dipl. Informatiking. ETH

Fluck Steven, MSc ETH in Computer Science

Frass Michael, Dipl. Informatiking. ETH

Frauenfelder Markus, MSc ETH in Computer Science

Fritschi Marco, in Ausbildung

Furter Markus, Dipl. Informatiking. ETH

Galvao Zehnder Sandra, Raumpflege

Gambarara Marino, in Ausbildung

Gegenschatz Christian, Dipl. Informatiking. ETH

Geiger Mehdi, in Ausbildung

Geisberger Frank, Informatiker

Georgokitsos Dimosthenis, Dipl. Informatiking. ETH

Graf Teddy, lic. oec. publ.

Grössl Sebastian, Dipl. Informatiking. ETH

Gruber Sebastian, MSc ETH in Computer Science

Guadagnini Reto, MSc FHO in Engineering

Gunterberg Sten, Informatiker

Gut Michael, Dipl. Informatiking. ETH

Gut Mirjam, lic. phil. I

Hänni Michael, MSc ETH in Com

puter Science

Hässig Mathias, Dipl. Inform

atiking. ETH

Hauer Jan-Hinrich, Diplom-Inform

atiker Univ.

Hauser Serge, Dipl. Informatiking. FH

Herlig Beat, MSc ETH in Com

puter Science

Hermann Andreas, M

Sc ETH in Computer Science

Heuberger Silvio, BSc FHO in Com

puter Science

Heusser Noah, MSc ETH in Com

puter Science

Hölzel Marc, Dipl. Inform

atiking. ETH

Holzner M

arkus, MSc Univ. in M

anagement

Hörnlim

ann Michael, in Ausbildung

Hostettler Adrian, D

ipl. Informatiking. FH

Huber D

avid, MSc ETH

in Computer Science

Huber Erw

in, Dipl. Inform

atiking. ETH

Hugelshofer Rom

an, Dipl. Betriebsw

irt. HFW

Hugelshofer Ruedi, D

ipl. Elektroing. HTL

Ischi Reto, MSc ETH

in Computer Science

Jeger Olivier, M

Sc ETH in Com

puter Science

Kägi Thomas, Ph.D

.

Kaufmann M

ichael, MSc ETH

in Computer Science

Keller Gabriela, D

ipl. Informatiking. ETH

Keller Jürg, Testing

Keller Matthias, M

Sc ETH in Com

puter Science

Keller Thomas, M

Sc UZH

in Informatik

Kiefer Roxane, in AusbildungKielholz A

nnette, lic. phil. IKläy M

anuel, MSc ETH

in Computer Science

Klenk Michael, BSc FH

O in Com

puter ScienceKnobel Andreas, Ph.D

.Koller D

aniel, MSc ETH

in Elektrotechnik und IT

Koller Lukas, in AusbildungKroll Anja, D

ipl. Informatiker FH

Krucker Peter, Informatiker

Küng Beat, in Ausbildung

Künzli Pascal, Informatiker

Küpfer Ramon, M

Sc ETH in Com

puter Science

Lehmann Alain, D

r. sc. ETH

Leumann M

atthias, MSc ETH

in Computer Science

Liechti Niklas, in Ausbildung

Lindegger Reto, MSc ETH in Com

puter Science

Lucas Christoph, Dr. sc. ETH

Lüscher Svetlana, Raumpflege

Lüthi Katrin, lic. phil. I

Malibago Janneth, M

Sc ETH in Computer Science

Marti Christof, M

Sc ETH in Computer Science

Marti Rem

o, MSc ETH in Com

puter Science

Mäser Fabian, Dr. sc. techn. ETH

Meier Daniela, BSc FHO in Computer Science

Meier Frank, Dipl. Informatiking. FH

Meier Jürg, Dipl. Informatiking. ETH

Meyer Albin, Dipl. Informatiking. ETH

Moser Dominik, Dipl. Elektroing. ETH

Muller Pieter, Dr. sc. techn. ETH

Müller Corinne, MSc ETH in Computer Science

Naef André, Dipl. Informatiking. ETH

Nanchen Stanislas, Dr. sc. techn. ETH

Napitupulu Jerry, Informatiker

Nart Fabian, Dipl. Informatiking. ETH

Nebel Caroline, Dipl. Informatiker FH

Nebel Ingmar, MSc ETH in Computer Science

Neiva Lucas, Informatiker EFZ

Neuenschwander Antoine, MSc ETH in Computer Science

Oesch Friedrich, Dipl. Wirtschaftsinformatiker

Ostermaier Benedikt, Diplom-Informatiker Univ.

Oswald Erich, Dr. sc. techn. ETH

Peter Hansruedi, MSc ETH in Computer Science

Peterka Tobias, Dipl. Informatiking. ETH

Piraino Vito, MSc ETH in Computer Science

Plutschow Ziroli, MSc ETH in Computer Science

Ravani Leonardo, in Ausbildung

Rechsteiner Martin, Dipl. Informatiking. ETH

Reichert Raimond, Dr. sc. techn. ETH

Roth Djela, in AusbildungRothenberger Frederik, in AusbildungSauter Alois, Verkaufsleiter Schaffhauser Michelle, MSc ETH in Computer Science

Schaller Cédric, MSc ETH in Computer ScienceSchaub Martin, MSc ETH in Computer Science

Scheidemann Kathrin, Dr. rer. nat.Schlachter Simon, MSc ETH in Computer Science

Schmid Raphael, MSc ETH in Computer Science

Schneider Adrian, Dr. sc. ETH

Schneider Hans-Jürg, Dipl. Informatiking. ETH

Schnider Guido, Diplom-Informatiker Univ.

Schoch Philippe, Dipl. Informatiking. ETH

Schuler Christoph, Dr. sc. ETH

Seitz Dominik, Dipl. Informatiking. ETH

Sherif Muhamed, in Ausbildung

Sidorska Justyna, MSc Univ. in

Computer Science

Sigg Benjamin, MSc ETH in Computer Science

Sigg Rolf, Dipl. In

formatiking. ETH

Silva Lucas, MSc ETH in Computer Science

Simone Dario

, MSc ETH in Computer S

cience

Spiess Patrick, D

ipl. Inform

atiking. E

TH

Spuhler David, M

Sc ETH in Computer S

cience

Stalder Nico, in

Ausbildung

Steinmann Ruedi, MSc ETH in

Computer Science

Stellin

g Simon, M

Sc ETH in Com

puter S

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Stocker R

obin, BSc FHO in

Compute

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Studer J

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Sutter M

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Urech

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Goal

Learning Objectives:

• Prove to the audience (by example) that different compensation models are possible.

• Show how important salaries are to culture and how it shapes the culture of a company.

• There is no easy way to implement this in another context. Therefore I want to help by giving other examples and embedding the topic with relevant literature to give the attendees the capability to come up with their own unique solution for a more agile compensation scheme.

Overview

• What is Agile Compensation?

• A few words on Ergon

• Products

• Culture

• Compensation @ Ergon

• Beyond Ergon

David Baer

@davidbaer

What is #AgileCompensation?

Problems in Compensation

– Bonuses– Individual Goals, MBOs– Individual Performance– Negotiations

– Interview– Yearly

– Discrimination

Agile Compensation

– Fair– Transparent– Participatory– Profit Sharing– Self-organized– Sustainable

– Enduring– Team Spirit, Company Goals

– Motivating (or at least: not demotivating)– Attractive– Culture (fits Company’s Culture)

The Ergon Compensation Model

Who is Ergon?

The company leads the field when it comes to developing custom applications, and it is an established manufacturer of software products

- 235 employees

- 80% with university degree

- 41.4 Mio CHF turnover (2014)

Facts & Figures Ergon Informatik AG

Prix Egalité 2011

Breakdown of turnover by sector

34 %

24 %10 %

32 %

IndustryGovermentFinance Telecommunication

Core Principles aka. Culture

Core Principles

Our employees’ enjoyment of their work and their determination to succeed are key factors in the success of Ergon.

The culture is based on the principles of grassroots democracy:

– Equality– Transparency– Participation– Profit Sharing

Most of our employees are IT graduates, and all employees have equal status– flat organisational structure– short lines of communication– non-discrimination in all matters

Equality

All company figures and data are transparent and accessible to all employees– This includes all payments to employees (salary &

bonus)

Transparency is a precondition for being proactive and entrepreneurial, acting self-organized without orders from a manager

Transparency

Full participation and democracy is the core principle. Employees are encouraged to contribute their own ideas proactively. – every decision of a team leader can be delegated by a majority of the team

members to the next level. This includes the executive management

Participation

Employees share in the company’s success and risk– 20% of our salaries are variable. The variable part is paid at the end of the

year, when this can be done without a loss. – A large part of our profit is payed as an additional bonus to our employees – The performance-related pay is based on the results of the whole company,

not on individual targets

Profit Sharing

#AgileCompensation @ Ergon

Image: http://www.foodaktuell.ch/editorial.php?id=1312

Salaries Overview

– Transparent– Calculated– Bonuses distributed in Teams– Profit Sharing– Democratic

Transparent

Percentage FTEYearly Salary

Various BonusesTotal

Transparent

Calculated

Years Experience

0 3 6 9 12 15 18 21 24 27 30

Head

Base Salary = 80% of Target Salary

Target Bonus

Function Bonus Management

Team

Div

iden

d

Dividend

ca 20% of Target Salary

10%

of T

arge

t Bon

us

10%

of T

arge

t Bon

us

Senior. Salary

Function Supplement (10% of Target Bonus)

max 25% Bonus

Profit Sharing

Democratic

We just voted on Parental Leave, Pension Funds

Why does it work?

– Grown– Culture– Contract– Success of company,

no individual or team rewarded

Other Examples, Literature

Employees are «really» important to us, that‘s why we are different

Fachartikel – Scorecard-Beilage (Belimo)– Netzwoche und ASUT-Bulletin (beide Industrialisierung der Telco-Industrie)

Innovation Breakfast abgesagt, wir suchen nach alternativen Möglichkeiten, den Markt zu bearbeiten

Vorberetung der Party für 10 Jahre Airlock, 6.9. im Papiersaal

Illustrations: www.guedel.biz

David Baerdavid.baer@ergon.ch, @davidbaerwww.ergon.ch, @ErgonAG© Copyright 2015, Ergon Informatik AG, Zürich