This page is maintained by the 🙌People Team

Policy Components

1. Centralised Annual Merit Cycle Review

The Merit Cycle is a process used to determine salary increases for employees based on their performance and contribution to the company. We conduct Merit Cycles twice a year, each time for approximately half of our team members, following the Annual Development Review dates:

• Q1 (January) Merit Cycle = Jul - Dec (prev year) Annual Development Reviews

• Q3 (July) Merit Cycle = Jan - Jun Annual Development Reviews

Any compensation changes resulting from these Merit Cycles will be effective in the following month.

2. Business Performance Review

Merit Cycles will only take place if there is available budget, ensuring that any increases are tied to our financial performance. The business performance review will happen in the month preceding the relevant Merit Cycle (Jun and Dec). If due to the financial situation the Merit Cycle is not happening, we will communicate the freeze transparently and will conduct the Merit Cycle as soon as we are able to do it again.

3. Individual Performance

The compensation will be determined according to the individual performance, as reflected in the previous Annual Development Review ratings. This establishes a direct connection between individual contributions and compensation.

Employee performance-based increase 3-10%*

• Evaluated based on Company-wide and Team- / Role specific competencies, defined per seniority level.

Performance based eligibility criteria for compensation increase

• Only employees evaluated as at least meeting expectations will receive a pay rise (Leapsome average numeric score = 3/5).
• Employees not meeting expectations as per competencies requirements defined will not be eligible for a salary reward.

*Exceptions

1. Psychologist in Therapeutic Services

This role is very specific and unique. It is mostly done part-time, sometimes even only for a limited period of time. Therefore, our Coaches are evaluated based on two components: 1. Quality & Quantity of Feedbacks:

Salary is increased by 3 or 6% based on the quality and quantity of feedbacks. This is assessed by your Direct Manager. 2. Competency-based:

Evaluating the key competencies crucial for success at HelloBetter and in the role serves the purpose of development in the role, assessing strengths, and identifying areas for improvement. ❗Please note: Only employees evaluated as at least meeting expectations will receive a pay rise.

2. Long Term of Absence (LOA)

4. Salary Bands

We are conducting market mapping annually to determine competitive salary bands for each role. The last Salary Audit happened in 2024.

The following criteria are taken into consideration:

• Role
• Seniority
• Qualification
• Responsibilities
• Experience
• Location
• Company Funding Stage
• Tailored approach for HelloBetter-specific roles

We have access to real-time compensation benchmarks, helping us make informed decisions about salary levels.

In line with the salary bands, a Salary Cap is implemented, representing the maximum amount of compensation an employee can receive in a specific role. This implies that any salary increase is restricted by the upper limit of the salary band, ensuring fair remuneration throughout the company.

Exception for Coaches (TS):

Given the unique role of Coaches, only the salary band for IC L2 will be provided, as there is no progression in seniority levels for this position. The salary range for this role is from €50,000 to €67,000. The upper limit of the range is extended to provide long-term recognition.

Policy Operations

Eligibility

The following eligibility criteria apply:

✅  Eligible:

• Team members > 1y tenure; i.e. after 1st Annual Development Review cycle
• Team members scored at least “meeting expectations” in Annual Development Review

❌ Not eligible:

• Pay raise (e.g. due to promotion) within the last 6 months
• Team members who have resigned or been terminated
• L0 - Trainee, Working Students, Freelancers

Promotions

We have the following two type of promotions:

• A leadership promotion - transition from individual contributor to leadership track - involves a significant change in the scope of the role.
• Performance related promotions i.e. recognition that an individual has developed to a more senior execution of their role are promotions to next seniority level, also called Recognition of Seniority (no significant changes in the scope of the role = mostly same scope, complexity change only).

Leadership Promotion

Pay rise applicable after internal Probation Period of 3 months and potentially outside of Merit Cycle.

• A leadership promotion, which involves transitioning from an Individual Contributor to Leadership track, must include an internal Probation Period lasting 3 months.
• A pay raise, contingent upon the successful completion of the internal probation, is agreed prior to Probation Period.
• Failing to pass the probation will result in a return to the role at the previous level.
• The timing of the pay raise determines eligibility to participate in the next pay rise during the Merit Cycle.

Recognition of Seniority

Pay rise applicable only in the Merit Cycle:

• Recognition of seniority & lateral transitions (without a minimum change of 2 levels / no changes in the scope of the role) do not result in an out of Merit Cycle pay raise.
• Performance related promotions e.g. recognition that an individual has developed to a more senior execution of their role are seniority promotions.
• These team members are addressed in the normal Merit Cycle receiving pay raises representative of their performance levels.

Communication of Salary Change

• Salary change is communicated as a part of the Merit Cycle process, only in the format of a letter sent from Management and uploaded to your Personio profile.
• There are no salary talks during the Annual Development Reviews, nor as a part of the Merit Cycle process.