Compensation Domain


Compensation Work Group


Business Management (Management)


Why does this domain exist?

Every organization needs a working compensation model in order to attract and retain employees. In most companies, this is done top down by management, with little influence by single employees (except their negotiation skills). This does not correspond to the VSHN values.

We want to have a group that creates and develops our compensation model (including salary system) as objectively as possible, leaving personal interest and personal political views out, so that it’s supported by all VSHNeers.


Our Business (represented by Management)

A salary system is for the company - the ability to actually hire and retain employees, so that we can fulfil our company purpose. In that are the aspects of fairness, transparency, equivalence, etc. This is why the compensation topic is delegated by Management directly.


All VSHNeers who get a salary are directly or indirectly affected.

Key Responsibilities

  • Get clarity about the requirements of compensation at VSHN.

  • Define and evolve:

    • the basis on which our compensation model is built like fairness, transparency, market orientation, etc.,

    • the Salary System, incl. how to set salaries outside of Switzerland,

    • other ways of compensation / benefits.

Key Deliverables

  • Documented and usable compensation model

  • Support to understand and use the salary system, to implement other aspects of compensation, etc.

External Constraints

  • Members of this group are selected through role selection, or other reasoned decision-making.

    • The Management needs to be represented by at least one member.

    • People Operations needs to be represented by at least one member.

  • Decisions are made using consent, involving the people affected.

  • VSHN Values.

Key Resources

  • Team members of the group accountable for this domain need time to actively work for this domain. Expectations to be defined as we learn about actual effort through reviews.

Delegator Responsibilities

  • Provide and support with economical / financial overview and constraints.

  • Budget for Education, Consulting, etc.


Besides the fact, that this domain directly affects every VSHNeer and the finances of VSHN, we see no clear dependencies at the moment.

Mindset, Skills and Capabilities

  • Willingness to learn about modern ways of compensation, what others do, etc.

  • Ability to leave personal interest and political views out.

  • Facilitation skills and experience (or ability to know when to get help).

Monitoring and Evaluation

Review (usually Peer Review) every 2 months with the Management as the Delegator.

Evaluation Criteria:

  • Every VSHNeer understands how compensation at VSHN works.

  • We’re able to set salaries to hire people in Switzerland, Follow-the-sun-locations and remote.

  • We’re able to translate other aspects of compensation to other countries.

  • Salary is not a blocker for what VSHN needs to do (hiring the best people).

This domain is tracked and reviewed as VIP-219