Compensation is a complex topic for most companies, especially when it comes to the issue of pay parity. Workday is no exception, but as a company that places great value on transparency, I feel it’s important to share some insights on our compensation philosophy overall. I also want to share the results of our most recent analysis of how we’re doing with pay parity across Workday globally, and the steps we’re taking to maintain those positive results in the future.
First, let’s talk philosophy. We know that competitive compensation is fundamental to employees feeling valued, motivated, and recognized for their contributions. We believe that providing employees with company ownership, solid pay, and a range of benefits is table stakes for being a great place to work.
As Workday has evolved and matured as an organization, we have generated solid financial results, and through this journey we continue to share our successes with employees. We pay at or above the market average in total direct compensation, which includes base salary, stock grants, and performance-based pay, such as commissions or bonuses for applicable positions. To maintain an accurate understanding of the market, every year we benchmark ourselves against other companies with similar attributes and use that information to build budgets and make compensation adjustments. In addition, we continue to evaluate how we’re doing in less direct areas of compensation, which has resulted in increases to 401(k) matches and ongoing enhancements to our other benefits plans.