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Case | HBS Case Collection | May 2017

Buffer.com

by Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

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Abstract

Social media company Buffer wanted to establish clear company values early in its growth. One of these values was a commitment to transparency in its company practices. Buffer openly shared its business strategies and fundraising decks, among lots of other information. Even when they were hacked, the company live-blogged updates to keep their users informed as the situation unfolded. Having internally released each employee's salary and equity details with no pushback, the company now contemplated sharing compensation information transparently with the general public.

Keywords: compensation; compensation design; company values; culture; transparency; Compensation and Benefits; Organizational Culture; Values and Beliefs;

Language: English Format: Print 18 pages EducatorsPurchase

Citation:

Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com." Harvard Business School Case 917-019, May 2017.

Related Work

  1. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  2. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  3. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  4. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  5. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  6. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  7. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  8. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  9. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related
  10. Supplement | HBS Case Collection | May 2017

    Buffer.com (B)

    Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall, Jee Eun Shin, Susanna Gallani, Tiffany Y. Chang, Brian J. Hall and Jee Eun Shin

    Buffer decided to release its salaries and compensation calculation formula to the public, and the public reaction was greater and more positive than they would have imagined. The company experienced both an increase in volume and a change in the kinds of inbound applications they received. As the company continued to grow, Buffer's senior leaders continued to revise the compensation formula based on feedback both internally and from the public. Particularly, they hoped to strengthen the link between pay and performance, which in the current version of the formula was incorporated using a loosely defined "experience level" component. However, defining clear performance metrics and experience levels was not an easy task.

    Keywords: compensation; compensation design; company values; culture; transparency; attraction; selection; performance measurement; performance measures; performance metrics; startup management; Compensation and Benefits; Organizational Culture; Values and Beliefs; Performance Evaluation; Measurement and Metrics;

    Citation:

    Gallani, Susanna, Tiffany Y. Chang, Brian J. Hall, and Jee Eun Shin. "Buffer.com (B)." Harvard Business School Supplement 917-020, May 2017.  View Details
    CiteView DetailsPurchase Related

About the Authors

Photo
Susanna Gallani
Assistant Professor of Business Administration
Accounting and Management

View Profile »
View Publications »

 
Photo
Brian J. Hall
Albert H. Gordon Professor of Business Administration
Negotiation, Organizations & Markets

View Profile »
View Publications »

 

More from these Authors

  • Working Paper | HBS Working Paper Series | 2019

    Are ISS Recommendations Informative? Evidence from Assessments of Compensation Practices

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    Keywords: Proxy Advisors; CEO compensation; Say-on-Pay; Institutional Shareholder voting;

    Citation:

    Albuquerque, Ana, Mary Ellen Carter, and Susanna Gallani. "Are ISS Recommendations Informative? Evidence from Assessments of Compensation Practices." Harvard Business School Working Paper, No. 19-085, February 2019. (Please contact the authors to request paper file.)  View Details
    CiteView Details Related
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    Mission, Mission on the Wall—Do You Have a Purpose After All?

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    Keywords: misreporting; mission statements; participative budgeting; organizational identification; systems of management controls;

    Citation:

    Deore, Aishwarrya, Susanna Gallani, and Ranjani Krishnan. "Mission, Mission on the Wall—Do You Have a Purpose After All?" Harvard Business School Working Paper, No. 19-084, February 2019. (Please contact the authors to request paper file.)  View Details
    CiteView Details Related
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    Citation:

    Gallani, Susanna. "The Robin Hood Army." Harvard Business School Case 119-007, July 2018. (Revised November 2018.)  View Details
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