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Anjuli Mauer from People Pace:

The Compensation Mistake That Destroys Startup Culture

Anjuli Mauer

CEO & Founder

Company

People Pace

Location

Berlin, Germany

Bio

I'm Anjuli, founder of People Pace. I advise HR managers and departments on how to design their processes to free up more time for the best part of HR work: truly value-creating people work. And I'm happy to advise you on how to best achieve that, too. Once a week, I co-host our podcast "HR Unvarnished" with the lovely Annika in der Beek. Give it a listen! Here, I write a lot about HR and People & Culture, feminism, and sometimes even politics.

I'm Anjuli, founder of People Pace....

description

At People Pace, our mission is to help companies build their People & Culture departments strategically, scalably, feministically, and humanistically from the ground up. We help manage growth spurts in a way that empowers the people within the company, rather than overwhelming them. With our expertise, even small and medium-sized enterprises gain access to experiences and resources traditionally reserved for large corporations.

At People Pace, our mission is...

Actionable Takeaways

Fix Operations Before Culture - The Maslow's Hierarchy of HR:

Anjuli follows a strict hierarchy: get payroll, onboarding, and offboarding processes bulletproof before attempting culture initiatives. She uses Herzberg's two-factor theory - hygiene factors (salary accuracy, basic systems) must work flawlessly before motivational factors (culture, engagement) can take effect. Companies that skip this foundation find their culture initiatives failing because employees can't trust basic operations. "If your salary is wrong every month, you don't care how good the culture is."

Design Compensation Systems That Reinforce Values, Not Undermine Them:

Early-stage companies often create compensation inconsistencies that directly contradict their stated values. Anjuli implements structured salary bands and bonus frameworks from day one to prevent competitive internal dynamics. She tracks how compensation decisions impact behavior - if bonuses pit employees against each other, collaboration suffers regardless of cultural messaging. This systematic approach prevents the common scenario where companies reach 300+ employees and discover their compensation structure has created an unintended culture.

Establish Performance Management That Actually Drives Cultural Consistency:

Rather than generic performance reviews, Anjuli creates systems where performance criteria directly reflect company values and desired behaviors. She implements regular dialogue frameworks where progression depends on demonstrating cultural fit alongside technical skills. This ensures that promotions and raises reinforce the culture rather than rewarding behavior that contradicts stated values. The result: employees feel safer because advancement criteria are consistent and transparent.

Build Strategic HR Influence Through Value Delivery, Not Seat-Claiming:

Instead of demanding "a seat at the table," Anjuli earns influence by bringing data-driven insights to leadership decisions. When leaders want to terminate someone on their last probation day, she provides cultural impact analysis and alternative approaches rather than just saying "no." She offers frameworks for expectation management and structured feedback processes that achieve business goals while maintaining cultural integrity. This consultative approach transforms HR from order-taker to strategic partner.

Systematize Cultural Impact Assessment for All People Decisions:

Anjuli requires cultural impact analysis for major people decisions - terminations, promotions, policy changes. She helps leaders understand how their choices will affect team psychology and company culture. For example, firing someone at 7:30 PM on their last probation day without prior feedback creates fear among remaining employees. By providing alternative approaches and explaining cultural consequences, she guides leaders toward decisions that achieve business objectives while strengthening rather than damaging culture.

Use Technology to Eliminate Administrative Burden and Focus on Strategic Work:

Anjuli advocates for aggressive automation of routine HR tasks to free up time for strategic culture work. She implements HR systems that automate birthday reminders, probation tracking, and payroll processes, then reinvests that time in performance management design and cultural initiatives. The key is evaluating every HR task for value-add potential - automate what doesn't require human judgment, systematize what does. This approach allows small HR teams to punch above their weight in cultural impact.

Create Transparent Promotion Pathways That Remove Bias and Increase Fairness:

Anjuli builds promotion frameworks that make advancement criteria visible and measurable. Instead of subjective manager decisions, she creates structured evaluation processes that assess both performance and cultural contributions. This transparency reduces bias in promotion decisions and helps employees understand exactly what's required for advancement. The system includes regular check-ins and clear behavioral expectations that tie directly to company values.

Conversation Highlights

In this episode of Heart of the Brand, host Diana Alexandrovna interviews Anjuli Mauer, CEO & Founder at People Pace. Anjuli reveals how scaling companies unknowingly destroy their culture through inconsistent compensation decisions and misaligned performance systems – and how to fix it before it’s too late. After building HR departments at multiple Berlin startups including Flaconi, she discovered that most culture problems stem from operational failures, not values misalignment. Her approach prioritizes getting foundational processes right before layering on cultural initiatives, helping companies avoid the costly mistake of trying to fix culture after scaling without proper systems.

Topics Discussed:

  • Building operational excellence as the foundation for sustainable culture
  • Creating compensation frameworks that reinforce rather than undermine values
  • Scaling HR processes from 50 to 500+ employees without losing cultural consistency
  • Implementing performance management systems aligned with company values
  • Using AI and automation to eliminate administrative burden and focus on strategic work
  • Establishing transparent promotion criteria that reduce bias and increase fairness
  • Managing culture evolution during rapid growth phases
  • Building HR departments that add strategic value rather than just administrative support
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