by Nathan Diddle
For software engineers, the topic of yearly raises is often a source of tension and competition. The industry standard is to allocate raise amounts based solely on individual performance evaluations. This system can lead to developers feeling like they are against one another, fostering a workplace culture more akin to a cutthroat competition than a collaborative team.
Expedition Technology takes a bold step away from the norm for employee salary compensation. Rather than an individual performance review-driven yearly raise, Expedition Technology uses a formula for determining raises which uses location in a particular salary band rather than individual performance metrics. This innovative approach is not just a policy—it’s a declaration that the company values team cohesion and collective success over individual grandstanding.
Traditionally, companies allocate a set budget for raises to each division, leaving the distribution to the discretion of management, who feels obliged to rank engineers “fairly” with contrived metrics. Perceived high performers receive higher raises, while their colleagues receive less. This disparity can lead to an environment where developers are incentivized to outshine their peers, taking on high-visibility tasks instead of doing the right thing, and, in some cases, undermining others to elevate their own standing. They’re also incentivized to time their gamesmanship to coincide with annual evaluations to take advantage of recency bias.
Expedition’s method for raises is refreshingly straightforward. It’s a predetermined equation applied uniformly, solely determined by your current salary’s location in band. This method eliminates most bias or subjectivity from the process, providing a transparent and equitable system for all employees.
For those accustomed to the industry standard, EXP’s approach can be a revelation. As I transitioned from companies steeped in the traditional competitive raise model to EXP, I saw myself concerned that my accomplishments weren’t getting noticed by the right people. The raise and promotion system felt like a black box. Once I fully understood that yearly raises were not directly tied to perceived performance by management, the mentality shift was profound—gone was the pressure to constantly prove myself along with the anxiety over whether my efforts were being noticed. This has given me a sense of relief and freedom and has created a workplace where there is a greater focus on the team’s achievements rather than individual recognition.
We have instead discovered more effective methods to acknowledge outstanding performance without cultivating a competitive environment. During our weekly company meetings, we dedicate time to celebrate the achievements of our teams and individuals, highlighting their contributions, fostering a sense of unity and collective success. Furthermore, our mentorship system offers a structured platform for colleagues to provide constructive feedback, facilitating personal and professional development. And, while the annual performance system is absent, EXP is fully committed to nurturing a culture that supports career advancement and its recognition. As employees grow in their roles, demonstrating more influence and capabilities, they are recognized through promotions and adjustments to their salary bands. However, there is no limit to the number of people who can be promoted; if everyone grows, everyone benefits.
Expedition Technology’s formula-driven raise system is more than just a policy change; it’s a cultural shift that prioritizes teamwork and shared purpose. It’s a testament to the belief that a company’s success is not simply the sum of individual achievements but the collective effort of its people working in harmony.
