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• Building startup compensation practices that clear, fair and competitive.

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• Insights and interviews showcasing startup people and compensation excellence.

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• Sharing every detail of taking a business from zero to $500k in revenue per year.

Matt McFarlane

Thought I'd test out the new Claude HR skill... 

Guess our jobs are safe?

Building startup compensation practices 👉 Compensation Philosophy + Job levels + Salary bands.

After doing comp for a while, here's the 6 things I'd do immediately to get comp under control if I was a new Head of People.
 
I'm assuming you've come into a company where:
- Nothing exists
- You're the first people hire.
- There's <50 employees.
 
Yee-ha.﻿ Let's go.
 
1. Define a basic job level framework.
 
I'm talking basic basic.
 
Even something like: Jnr > Mid > Snr (+Founder = 4 levels).
 
That's all.
 
Just get a basic framework for distinguishing different role sizes. You can expand it later.
 
2. Level your people against the framework
 
- Jim = Junior
- Mary = Mid-level
- Tammy = Senior
 
Bonus points if you want to define the basis for putting them in those buckets (always good to have a rationale).
 
3. Build salary bands based on who you already employ (and pay)
 
Market data is nice but maybe not critical at this stage.
 
Instead: find the median salary at each job + level for the people you already pay
 
For example: junior software engineer.
 
See what the range is between lowest and highest paid.
Decide if it's too wide (20%+) or too narrow (<5%).
Congrats, you've got salary bands.
 
4. Define why someone is at the bottom vs the top
 
Important if you're going to mature these things. 

What dictates that someone is paid higher vs lower in your new band?
 
Don't have performance ratings or similar in place? Use something objective like tenure.
 
Not perfect, but a useful proxy in the short term (especially if you genuinely rate the people you've hired and kept).
 
5. Adjust your bands for hiring
 
Find your bands are holding you back in the market? Lift them.
 
Just remember to bring the current employees up with them.
 
Also make sure you're not accidentally compressing bands too close to one another, so lift the ones above and below, too.
 
6. Write all this stuff down (i.e. comp philosophy)
 
Help your people to understand how this stuff works.
- They'll appreciate it,
- You'll have more trust,
- And now questions can be answered a little more quickly.
 
Congrats, you have a halfway decent comp practice.
 
PS. let me know what is one thing you would add?

The best leader I ever worked with introduced themself with a ‘How to Work With Me’ guide. Here’s what it included — and why it worked so well.

I was new to the team, and so were they — I didn't know what to expect.
 
They didn't hire me — which led to feelings of:
- Would we get on together?
- Would they like me?
- What if they're a terrible boss?

But before we had a chance to connect over a call, something landed in my inbox and the inbox of each of their new direct reports.

It was a 'how to work with me' guide.
 
It introduced themselves and how they liked to work.

This was the first thing that set my impression.

- Not a flashy PowerPoint.
- Not a long-winded speech.
- Just a raw, honest doc.

The doc wasn't lengthy, but it was comprehensive — it covered things like:

• What they look for in their team
• How they like to communicate
• What great work looks like to them
• Their strengths and where they struggle
• How we could help them be better

They didn’t know us yet.

But this gave us immediate insight into who they were — and how to build trust and momentum quickly.

- There was no pressure to respond immediately.
- We read and digested it in our own time.
- And then we responded in kind.

That moment set the tone for our entire team culture.

We started sharing our own guides.
It encouraged us to do the same with our teams.
It scaled trust without needing synchronous time.

We talk a lot about onboarding processes and leadership styles.

Start here.

It’s simple, human, and unforgettable.

Have you ever received or written a ‘How to Work With Me’ guide?

I’d love to see your take 👇

If you're a People professional, your goal isn't to be liked, it's to be respected. Here's ten things I've seen teams do wrong, and the ten who get it right.
 
The true indicator of success in a People function isn't personal popularity, but creating a work environment that empowers its people.
 
Those that work work in People teams because they "like people":
 
1. Overpromise but under-delivers.
2. Give in to every demand.
3. Shy away from having difficult conversations.
4. Play favourites among people.
5. Avoids making tough decisions.
6. Avoids conflict at all costs.
7. Apply policies inconsistently, fearing backlash.
8. Side with popular opinion, not what's right.
9. Overlook performance issues.
10. Focused excessively on office parties and perks.
 
People professionals that earn respect:
 
1. Set clear expectations.
2. Take responsibility for mistakes.
3. Communicate effectively.
4. Balance employee needs with business goals.
5. Enforce policies fairly and consistently.
6. Handle conflicts professionally.
7. Supports addressing performance issues promptly.
8. Provides valuable, actionable feedback.
9. Develop effective training and development programs.
10. Uphold ethical standards at all costs.
 
The real currency in this profession isn't being liked, it's fostering an environment that enables employees to thrive.

What is one you would add to either of these?

Yesterday, ~900 people learned what to charge their clients as a HR consultant.

It's been the most uncomfortable part of my journey from in-house to a career that now earns me twice what my highest paid role ever did.

In this edition, I break down not only how to land on your rate, but the different pricing models I've used it for.

All in painstaking detail so you don't have to guess through it like I did.

And you can read it for free here: https://lnkd.in/gCrNXM-n

The god father of AI built a site that scores AI impact on jobs and, brb I'm going to re-skill as a Gardner.

Andrej Karpathy is one of the most influential AI engineers of the modern era — you can read more about him here: 

https://karpathy.ai/

He vibe coded a site that pulls US Bureau of Labor Statistics info and ranks their exposure to AI capability.

Check it out here:

https://lnkd.in/gYP-CXXy

HR Managers have an AI exposure of 7/10.

What's cool though is the brief description it gives on *what* will be disrupted.

And honestly, it's the parts I'm ok with being disrupted.

Check it out and let me know what you think and if you agree with its scoring.

I've rarely seen a careers page that actually made me want to apply.
 
- Stock photos
- Five values that could belong to any SaaS
- A culture paragraph that says everything and nothing
 
Meanwhile, the companies with real pull?

You hear about them because an employee jumps on LinkedIn and writes, "we just shipped this and I'm pumped"
 
If you're running the People function at a fast-growing SaaS and can't match Big Tech on salary, you know exactly why that matters.
 
The companies with pull have built something candidates already believe in before they've even applied.
 
In the coming edition of FNDN Series, I sat down with Lachlan Bradford, a brand and community builder in SaaS, and it reframed how I think about this for employees.
 
I'm breaking down the playbook in this week's newsletter.

Subscribe here (it's free): https://lnkd.in/gUTnpE_s

A lot of meetings could have been an email. Here's one of the best ways to filter the fluff.

One of the most powerful things I learned (way too late in my career) was how to become hyper efficient through meeting diligence. And there's one framework at the cornerstone of this.
 
It wasn't until I began working for truly remote companies that it dawned on me how much of an unlock it is to cull them wherever possible.
 
Historically, meetings were booked for anything and everything.
- Progress updates on projects/work.
- Regularly scheduled because someone decided it would be good to check-in.
- The ad hoc 'can I ask you something' that turns into a full blown half hour to an hour of your day - gone.
 
The fact is that these kinds of meetings kill the deep work necessary to deliver critical outcomes for you and your business. They distract you from true productivity, and harm your career in the process.
 
But then I was introduced to the POST framework — and we made it a pre-condition necessary for any meeting to go ahead had. 

The person who wanted the meeting had to include this acronym in the meeting request.
 
Here's what it stands for:

- Purpose: why are we having the meeting?

- Outcome: what goal should we accomplish by having this meeting?

- Structure: what are we doing in the meeting? Are we making decisions, or are we brainstorming something? what is everyone's role?

- Timing: how long is it going for and how does the agenda fit within this duration?
 
When you have to do even the most basic amount of work to even have a meeting you'd be surprised how many of the ad-hoc meetings fall away, and even the cyclical one's (each meeting needs to be justified).
 
Take this a step further.
 
If the meeting is a progress update, or is otherwise sharing information one-directionally, make it asynchronous and do it via written or video recorded update.
 
You'd be surprised how much faster things get done when you can read it and respond in your own time (with deeper thought or while listening at 2x speed).
 
It goes without saying that something like this needs to be adopted from the top down, but by piloting an approach and measuring the outcomes (reduced meeting time, improved output) you'd be surprised how easily the case stacks up to adopt this approach across a company.
 
Have you ever tried an approach like this at your company?

If Jeff Bezos says no team should need more than two pizzas, and AI means I’m now doing the work of a whole team — do I get both pizzas?

I speak to 100's of HR team's a year. Here's 5 steps the best ones are doing to embed AI.
 
Too many HR teams are either intimidated or overwhelmed when it comes to AI, and they're falling behind.
 
Instead, embrace the below steps and you'll be in the top 10% of People teams using AI.
 
1. Create dedicated, protected time
 
You can't just slap AI on top of your day job, or squeeze it in between meetings (duh).
 
The work you're doing today will always trump the deep focus time you need to be successful.
 
So carve it out, choose 1 of these:
- Commit 1-2 hours a day to AI, or
- Give 1 day a week to AI.
 
If you need to drop something to make this happen, do it. This must be higher priority than at least one thing you're team does or it won't get the attention it needs.
 
Protect the time, remove distractions — go into deep focus and spend it doing one of the things in the next step.
 
2. Time box it
 
If you're just starting out, commit to doing a short term blitz and then work out how to embed it longer term.
 
Here's a format you can steal:
 
6x week sprint:
 
Weeks 1-2: Focus only on learning/immersing yourself in what's possible

Weeks 3-4: Focus on testing the tools you saw in weeks 1-2

Weeks 5-6: Move from testing to actually building (what to build is covered in step 5)
 
3. Curate learning, don't create
 
There's so much free content available on using AI that you'd be crazy to spend money on it.
 
- Greg Isenberg
- Ruben Hassid
- Jeff Su 

These are just three (from dozens of) creators I love, who share genuinely actionable insights on embedding AI.
 
Spend time watching and seeing what can be done - this will get your brain subconsciously thinking about AI solutions for your team.
 
4. Empower your team
 
The key message here is: 'remove friction'
 
Time is a friction (tackled in step 1), but the second biggest one I see, is money.
 
Don't let budget be a blocker here.
 
If you're CEO wants you to embed AI practices (and you should to quit if they don't) — then securing a small budget is a no brainer.
 
There's so many tools - give your people a chance to trial a bunch of them and see what works.
 
Then:
- Keep the ones that work
- Remove the ones that don't
 
Don't make a big procurement process block game changing improvements.
 
5. Start small when building
 
Don't try to boil the ocean.
 
You won't be able to replace a HRBP in a week.
 
Instead, start small.
 
Pick the smallest workflow/process/interface under your remit, and start there.
 
Use your success here to build momentum and move up the value chain.
 
Don't let overwhelm and intimidation stop you from becoming a more effective People team.
 
Tell me, which step do *you* think is most important to embedding AI in People teams?

Even though my team smashed his team in the Great Debate on Pay for Performance, I actually agree with a lot of what James A Seechurn has to say.
 
So much so that after reading his book, I reached out to have him on the FNDN Series.
 
The book is 'What Pay Costs'.
 
It's incredibly good. The kind of book that makes you annoyed you didn't write it first.
 
I thought I grilled him for over an hour, poking holes in his idealistic views on how pay can work.
 
But actually, I just nodded along.
 
If you think most of the pay practices you see at work feel a bit broken — whether as a people professional, as an employee, or as a manager — this one's worth your time.
 
Subscribe to the FNDN Series to get a digest of the conversation, and a link to the full episode where we break it all down for you.
 
Join 5,500+ startup Heads of People here (it's free!):
https://lnkd.in/gUTnpE_s

Over the past 2 years I've been gradually refining my newsletter, written specifically for startup Heads of People. Lately, the investment has been paying off.

If you're the Head of People / CPO in a scaling company (50 to 500 people) 
👉 This is for you (it's free): https://lnkd.in/gUTnpE_s

Paying employees more money won’t motivate them.
 
But HOW you pay them will.
 
Here’s why
+ 4 steps to motivate your employees (without paying them more):
 
Employees don’t disengage because they want higher salaries.
 
They disengage because they see unfair pay practices.
 
When two people do the same job but one earns significantly more:
 
- Creates a lack of clarity on how pay decisions are made
- Makes pay feel random, not earned
 
But here’s where something interesting happens:
 
Double Demotivation Theory.
 
Double Demotivation Theory says there are two ways pay can make employees disengage:
 
1. People who believe they’re earning less than they should lose motivation.
 
That's the obvious one, but here's where it gets weird...
 
2. People who are being paid MORE compared to their peers ALSO lose motivation.
 
Now, this proves ONE thing:
 
It’s not just about more money. It’s about TRUST.
 
If people don’t trust the system, no amount of raises or perks will keep them engaged.
 
Fixing motivation doesn’t start with throwing more money at people.
 
It starts with paying fairly.
 
Here’s 4 steps to start paying fairly + keep your people motivated:
 
1. Have a clear, structured approach to pay
2. Make sure employees understand how salaries are set and why
3. Be transparent. Even if you don’t share every number, explain how decisions are made
4. Benchmark pay regularly. Ensure internal pay aligns with market rates — and that pay gaps aren’t eroding trust
 
TL;DR
 
Motivation doesn’t just come from bigger pay checks.
 
It comes from people knowing they’re being treated fairly.
 
People aren’t just demotivated by being underpaid.
 
They’re demotivated when they see OTHERS getting UNDERPAID. 
 
Pay fairly -> build trust -> drive motivation.
 
What’s one thing companies you'd like to see companies do today to make their pay practices feel more fair?

This is the most powerful tip I learned for growing a personal brand on linkedin:

You can just say stuff.

Block cuts 40% of workforce because AI - Stock pops 20%. Atlassian cuts 10% of workforce because AI - Stock drops 7%. 

Does the market think they should have gone deeper?

Or something else?

RACQ

HR Reporting and Programs Specialist

Organisational Development Specialist

Human Resource Officer

The Landscape Construction Company

Human Resources Coordinator

Mable

Disability Support Person

Managing F+B for major and minor events at Qld State Netball Centre.

Venue Manager (F+B)

Zen 

Operations Manager

Billabong Group - Australia

- Interview guides
- Headcount, turnover and leave reporting
- General administration duties

HR Administration Work Experience

Lucky Bao

- Developed business strategy, expectations and procedures from day one.
- Budgeting.
- Performance management.
- Stock control.
- Operation Management.
- Event planning.
- Organizing offsite operations.
- Training and development.
- Supplier contract negotiations.
- Developed and marketed events to gain more exposure for the venue.

Venue Manager

Social Eating House + Bar

- Oversee day-to-day restaurant operations
- Scheduling
- Delivery of personalized service to high caliber clients.
- Stock control

Assistant Manager

Hamilton Island

Team Supervisor

Outlet Manager

HR Professional with special interest in WHS and employee engagement.

My philosophy is to be; 

🌎Open - Open to opportunities | open to change | open to opinions.
📚Curious - Take any opportunity to learn and grow | Ask questions. 
⚖Honest - Be true to myself and reflect.

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Matt McFarlane

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