Insider News: Leaked Slack Messages Show Shopify Plans To Address Pay And Attrition Woes
Mar 29, 2022
Shopify intends to address staff complaints about compensation during an upcoming town hall meeting, according to leaked data from its internal Slack channel.
As part of their employment agreement with Shopify, the employee receives a restricted stock unit (RSU) in addition to his regular wage. Recent months have brought increased tensions as Shopify's stock has plummeted from its record levels. As a result of the decline in the stock price, many workers have been concerned about the value of the income they receive.
It is reported that Shopify pays lower wages than its competitors in the software industry, according to sources familiar with the topic.
As an employee pointed out, Shopify is known to pay less, particularly in base income, but this is partially offset by RSUs. "Now the situation is different."
As of Tuesday afternoon, Shopify's shares were trading at roughly $740. At its peak in the autumn of 2021, it was worth around $1,762.
The Information recently released a report titled "Shopify Doubles Down on 'Pay Isn't Everything' Approach" that sparked a heated discussion within an internal Slack channel. The Information highlighted an internal Q&A in which Shopify's revenue vice president, Mark Bergen, said the business was not looking to hire high-paid employees. By Tuesday, over 300 reactions had been received on the Slack post. Employees demanded that management cover these issues and increase transparency regarding salaries.
Employees' concerns were addressed by Farhan Thawar, vice president of engineering, during a series of Slack conversations in March.
"It's the hottest talent market we've ever encountered," Thawar commented in a thread roughly a week later, on March 23. "It's not only our stock price that's volatile. People are concerned about it every day. Especially those who joined at a high price last year."
Thawar also addressed the issue of attrition, which is a significant worry in many sectors right now.
"We recognize it's tough to focus if you or your team are being recruited, but I think we ought to try," he said.
"Thank you for your participation, responses, and overall enthusiasm for engaging on this issue as we keep developing. It's not an easy subject, and it may be disheartening to see things not moving as quickly as we'd want. I'm just as eager to have things resolved so we can all go back to work on our goals."
He then added that the topic would be closed to further responses in order "to let everyone move on from this subject."
A culture that "defaults to open"
Shopify workers were informed on Tuesday that Thawar would make a statement on payments soon, and the matter would be addressed in an upcoming town hall. An attempt to reach a Shopify spokesperson for comment on this development was unsuccessful.
The Shopify team hosts a town hall every week, covering a different topic. Officials often state that the company seeks to create an open culture, and holding town hall meetings is part of that effort.
During the firm's fourth-quarter results call in February, Shopify CEO Tobi Lütke was questioned about the corporation's approach to payments. He admitted that basic wage and stock incentives are major factors in attracting talents.
According to Lütke, the company ranks among the top-paying companies for both categories globally.
Additionally, he also noted that Shopify does not only compensate its employees but also provides them with "a lot of experience" and the chance to learn directly from the corporate management, including Lütke himself.