Pay and Performance
At Lyquix, we believe in transparency, fairness, and rewarding our team members for their contributions. This page outlines our approach to compensation, performance reviews, and promotions, ensuring that you have a clear understanding of how your pay is determined and how your performance is evaluated.
Base Pay
For employees
Base pay at Lyquix is determined by a pay scale system designed to align with clear career progression paths and market competitiveness. Each job type (e.g., Designer, Developer) is classified into five levels based on the position's specific requirements and responsibilities (e.g., Junior, Mid-Level, Senior, etc. as described in the Professional Development section).
Within each level, there are 10 pay steps, which represent incremental increases in base pay. Each step corresponds to a 2% increase from the previous step. Employees will move up one step annually on January 1st, provided they meet performance expectations (new hires must be employed for a minimum of 9 months to be eligible for a step increase). If performance expectations are not met, employees will not advance to the next step until they demonstrate improvement. Exceptional performance may result in accelerated progression through the steps at management's discretion. Once an employee reaches step 10, there are no additional steps available at the given level.
We conduct an annual review of salary market data during the last quarter of each year to ensure our pay scales remain competitive and equitable. If market rates have risen, we adjust the pay scale accordingly, effective January 1st. If market rates decline, we do not adjust the pay scale immediately. Instead, pay levels are held steady until market rates rise again. However, in cases where market rates remain consistently below our pay levels for three or more years, we may consider salary adjustments to align with broader market trends, ensuring the long-term sustainability of our compensation system.
For contractors
Compensation for contractors, whether salaried or hourly, follows principles similar to those for employees. As with employees, each job type (e.g., Designer, Developer) is classified into five levels based on the position's specific requirements and responsibilities (e.g., Junior, Mid-Level, Senior, etc.). Compensation levels for contractors are guided by prevailing market rates in the contractor's location, and adjusted by their individual performance and skill level.
Incentive Bonus
Only for full-time employees
All employees participate in Lyquix's Incentive Bonus program, which is designed to reward team members for meeting and exceeding their performance goals. This bonus is awarded once a year and has two components:
Individual Performance Bonus: This is the core component of the bonus and is directly tied to your job title, level, and performance.
- All team members are expected to meet their goals and performance expectations. The baseline for success is achieving a performance score of 100%, which aligns with your target bonus. This is the standard expectation, and every team member should strive to meet it.
- Team members who go above and beyond can achieve a performance score of up to 150%. This offers an opportunity to significantly increase your bonus and earn more by delivering exceptional results.
- Scores under 80% are considered failing, signaling a need for improvement.
- The bonus tier percentage is based on your role and level:
- Junior and Mid-Level: 7.5%
- Senior and Lead: 10%
- Principal: 12.5%
Company Performance Bonus: This component of the bonus is tied to Lyquix's overall financial performance for the year, and calculated as a percentage of your Individual Performance Bonus.
- Each year, the company performance goals will be established. The company's performance is measured by total company sales (on an accrual basis), minus any pass-through or third-party costs (e.g., hosting, domains, software licenses, etc.).
- The target Company Bonus Tier is set at 20% (of your Individual Performance Bonus), but it can be as high as 50% if the company's actual performance reaches 150% of the target. This means that when the company excels, so do the bonuses for all team members.
Please Note
This is a summary of the Incentive Bonus program, please refer to the Employee Performance Evaluation and Incentive Bonus Policy for complete details.
Promotions
To be considered for a promotion, you must demonstrate your ability to perform at the higher level. For example, to be considered for a promotion to the Senior level, you must consistently perform work that requires minimal detailed review. This does not imply that there is no room for improvement or that you can't deepen or broaden your skills and knowledge.
When you are promoted—moving from one level to another—you will receive a corresponding pay raise effective on your next pay cycle.
Performance Reviews
You will have formal performance reviews with your manager. During your first year, these reviews will take place quarterly. After your first year, they will occur annually at the beginning of the year. Your manager will share performance expectations for your role when you start and keep you informed of any changes to these expectations as they evolve.
Managers are expected to document performance goals, review outcomes, and any action items or deadlines that come out of the meetings using the Performance Goals and Evaluation Template.
Please Note
This is a summary of the performance review process. For complete details, please refer to the Employee Performance Evaluation and Incentive Bonus Policy.
Performance Improvement Plans
If your work performance does not meet expectations, you may be placed on a Performance Improvement Plan (PIP).
PIPs are only initiated if your manager believes the performance issue is correctable in the short term. We do not initiate PIPs for fundamental performance issues related to core job skills. For example, if a Developer's coding skills are not at the required level, we would not initiate a PIP. However, a PIP may be initiated to help you improve in a coachable skill, such as project management.
At Lyquix, we are committed to fostering a work environment where your contributions are recognized and rewarded. By clearly defining our compensation structure, performance expectations, and pathways for growth, we aim to support your professional development and ensure that your hard work is fairly compensated.