E-commerce tech platform Shopify has announced the implementation of a new staff compensation plan designed to uncomplicate the process behind rewarding employees.
Entitled ‘Flex Comp’, the approach will focus on three key elements each designed to “define the future of compensation”, the company said in a blog post.
The first, ‘Agency’, allows employees to choose how they want to allocate their total reward, such as through cash or stock units. The company added that it has halted the use of its one-year cliff on equity, enabling employees to adjust their choices alongside their needs.
‘Clarity’ aims to eliminate potentially complex salary structures, instead developing easy-to-follow user experience (UX) so employees can better understand their pay stubs.
The final element, ‘Impact’, will reward employees advancing in their careers while also having a positive impact on the company’s overall mission, growing their compensation alongside their efforts.
The new initiative was developed in communication with almost every team at Shopify, the company said, and involved a “two-week coding sprint” to develop the system.
Next to bonuses or RSUs, Shopify said it is hoping to add features like charitable donations and Shop Cash, used for its merchants, for employees to select as rewards as part of its mission to develop “a virtuous cycle”.