PRESENTED TO:-

Dr. Mousumi Sengupta

PRESENTED BY:-
Group 1
Abdul Azeem Bagali 20001
Akshata kannegal M 20008
Bavithra K 20011

SOCIAL SALARY Shivam Agrawal

Anket Shetye
20012
20013

SETTING AT SPIBER
Chilakala Sreya 20014
Haritha Haridasan 20019

DATE-
28/06/2021
SPIBER HISTORY

• Spiber is a company that makes synthetic silk-built form proteins mimicking the proteins found in
spider silk, the world’s toughest known material by weight.
• Spiber was to create technology to help to switch to renewable resources.”
• The executive team wanted the company’s compensation system to match the organization’s values.
Thus, the company had implemented a unique salary-setting process designed to inspire autonomy and
responsibility among employees
• Each employee was given the responsibility of setting their own salary, along with the responsibility
of writing a report, known as a “Reason Document,” explaining the rationale behind the salary
number.
• The need for sustainable materials that did not rely on petroleum-based fibers was expanding in the
garment market, and Spiber planned to extend the usage of synthetic protein fibers in outdoor and
casual wear. They planned to enter the car components sector as well.
CASE BACKGROUND

• Employee pay were to be decided by the executive team in Spiber's original compensation package.
• When Spiber had a small staff, this type of remuneration system worked well, but it became unsustainable as the
company developed.
• Spiber then went on to a “set your own compensation model,” in which employees choose how much they want to
be paid.
• Unfortunately, this strategy did not always result in an amount of compensation that peer's thought was reasonable.
• Employees wanted more money every period, and Spiber was spending a lot of money on payroll as a result of this
compensation scheme.
Business challenges
• Development of protein materials had lot of trial and error.
• Developmental costs were high
• Central challenge was to reduce production cost and maintain the desirable properties
• Inability to motivate their talented and ambitious workforce.
CENTRAL ISSUE IDENTIFICATION

• Due to increase in the employees, there were problems in the initial compensation system and “set
your own salary” model.
• Employees started to express frustration at the lack of transparency in the previous compensation
system
• Some employees felt like they did not understand how their salary was being decided, while other
employees felt like their salary was being decided arbitrarily. As a result, employees across the
company started demanding clear evaluation criteria.
• The main issue with this model is that whenever employees were given a chance to decide their own
salary, they end up asking more and it increases Spiber payroll.
ISSUE RESOLUTION

1. More Executive Teams

As the company increased the employees to 50, it became difficult for the existing team to manage all
the employees tasks and roles therefore it is required to increase the executive team members so that
the evaluation of all the employees are done equally.
2. Adopt an Advice Process
• Employees deciding their own salary could take advice from the senior management.
• Doing this process, employee from self reflection would come to know their own task in comparison
to the task done by colleague.
• The senior management giving advice would ensure that employees are not underpaid and are
rewarded according to their worth.
CONTD…

3. Have salary based off the Industry average/ Performance

• Spiber may decide employees salary based on Industry average so that the gap between amount that
people declared and the results they are producing is reduced.
• Paying above industry average and some additional pay for their performance will help in retaining
more employees and increase in efficiency.
CONCLUSION

• Evaluating people and setting their salaries can be challenging task.

• At Spiber, employees did not understand how the salaries are being decided and whether it was
chosen randomly.
• For the best possible solution, our team has decided that Spiber should have compensation plan set
above the industry and evaluate according to the performance and contribution in the company.
• Also Spiber can take measures to judge the performance and communicate to the employees which
will make employees to have clear understanding of what they can do to increase the pay.