In 10Pines IT company, employees determine the amount of their salary

Buenos Aires-based technology company 10Pines describes its approach to employees as a so-called "sociocracy", writes the BBC server in a report. It is based on the model of the Brazilian businessman Ricardo Semler, who in his production company entrusted managerial duties to the employees themselves, which led to their lower turnover and also to higher profits. The Argentine company with 85 employees applies a similar system of "flat hierarchy" and maximum possible transparency between employees. Especially in the area of wages. "The key aspect is not to know who earns how much, but to know who earns more and who earns less," Ariel Umansky of 10Pines told the server. Last December, Umansky refused a seven percent increase in his salary because he felt he could not defend it in front of his colleagues. He had gotten added twice in the last five years, but refused each time. "I didn't feel good about earning as much as people whose performance I think is better," he explained. The salaries of 10Pines employees are determined three times a year by meetings attended by everyone except the new people who are on probation. Employees suggest who should get added, which is then addressed in an open discussion. However, it is not just about wages, all key decisions are discussed in the same way, such as hiring new clients or solving company expenses. The company does not have an executive director or traditional managers to lead teams of its people. More experienced employees are referred to in 10Pines as "companion" or "master", the BBC describes. "Since there are no bosses who would decide on the amount of salary, we have entrusted this power to the people themselves," said the company's co-founder and foreman Jorge Silva. Employees also share half of their profits each year. 10Pines was founded in 2010 and its clients include, for example, Burger King and Starbucks, for which it creates applications. There are not many companies with a similar structure in the world, but their number is gradually growing, says British expert on corporate culture Ben Whitter. According to him, the idea of transparent wages can be a good way to eliminate the pay gap between men and women. "The key is to understand the difference between 'equal' and 'fair'," says Jorge Silva. "We're not all equal, but we try to be fair."