webinar-compensating the workforce of tomorrow

Compensating Tomorrow’s Workforce, Today:

Millennials & Beyond

Mykkah Herner, MA, CCPModern Compensation Evangelist

Angela Ulman, CCPCompensation Professional

A copy of the presentation and recertification credit will be sent out within a couple of business days

15,000 Positions 3,500 Customers 11 Countries

250 Compensable Factors54 Million Salary Profiles

www.payscale.com

Angela Ulman, CCPCompensation Professional

https://www.linkedin.com/in/angelaulman

Mykkah Herner, MA, CCPModern Comp Evangelist

https://www.linkedin.com/in/mykkahherner

www.payscale.com

Understanding tomorrow’s workforce

Tailoring compensation to your workforce

• Mix of pay

• Advancement

• Communication

Where to start

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57% of organizations view themselves as modern or forward-thinking

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Understanding tomorrow’s workforce

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Identify personas in your workforce

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Workforce Characteristics• Generation• Life stage or lifestyle• Income and/or class• Urban and/or rural• Size of organization• Job function

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Defining the Generations

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Baby Boomers 1946 – 1964 Size: 74MCommunication

About Comp:Private

Average Tenure:15 Years

Career Mindset:Loyal

Self-drivenHigh Work Ethic

Retirement

Generation X 1965 – 1979 Size: 66MCommunication

About Comp:Semi-private

Average Tenure:5 Years

Career Mindset:PessimisticSelf-reliant

Work/Life BalanceManagement

Millennials 1980 – 1995 Size: 74MCommunication

About Comp:Public

Average Tenure:18-24 Months

Career Mindset:Idealistic

Fairness, Flexibility Values Work/Life Balance

Advancement

Generation Z 1996 – Present Size: TBD, 69M+Communication

About Comp:Semi-private

Average Tenure:TBD

Career Mindset:Realistic

Multicultural FluencyTechnology Native

Learning with a Purpose

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Generational Size Today

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FiveGenerations

of 2020

Gen Z

Millenials

Gen X

Baby Boomers

Traditionalists

Bureau of Labor Statistics Employment Projections

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35% of top performing companies are changing strategies for millennials

vs 28% of all companies

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Tailoring compensation to your workforce

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Mix of Pay

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What is the Right Compensation Mix?

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Preferences by generation

Boomers Gen X Millennials

Low Med High

Med Low High

High High Med

High Med Low

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Get CreativePasses to sporting eventsCatered lunches for winning teamsDays off after big deadlinesChoice of work assignmentDevelopment opportunities Lunch with the CEORemote work

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EqualFair

A note on fairness: Fair doesn’t necessarily mean equal

Differentiate* Pay byPerformance

ResultsExperience

SkillsEducation

*Be aware of legal restrictions

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Advancement and your comp structure

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Millennials seek advancement

Sample Career Ladder

Rental Coordinator

General Manager, Rental

Rental Coordinator Supervisor

Rental Manager

Grade 3 Grade 5 Grade 7 Grade 12

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You may not be big enough for career ladders. What paths exist?

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Connecting pay guidelines to generations

Now, with much greater mobility, flexibility, and advancement:

Level III

Level II

Level I

Then, with much higher tenures and pensions:

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Learning & Development

• Learning management system

• Mentors

• Lunch & Learns

• HR-led manager groups

• Structured succession planning

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Communication

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How does perception of pay impact employees?

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Most do not know if they are paid fairly

Full Article: https://hbr.org/2015/10/most-people-have-no-idea-whether-theyre-paid-fairly

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of employees are ok with low pay if the rationale is explained82%

In other words, the WHY matters

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Transparency spectrum

Drive greater transparency

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Skills Gap

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What are they missing?• 44% cited writing proficiency• 39% called out public speaking• 60% identified critical thinking/ problem solving• 56% noted attention to detail• 46% mentioned communication more broadly

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• Managers

• Machinists

• STEM jobs

• Obsolete skills

• Purple Squirrels

Impacted Roles

Looking even farther into the future

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Need help? Start with these questions:

• What is the make-up of your workforce?

• Determine mix of pay that you currently use – are you using all tiers?

• What are the opportunities for advancement, learning, and development?

• How transparently are you sharing compensation information?

• What skills do you currently have? Lack? How about in 5 years?

PayScale Delivers Where Other Compensation Providers Fall Short

PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 54 million salary profiles. More than 3500 organizations use PayScale’s software and intelligence to get the greatest return on their talent. Smart businesses use PayScale Insight to recruit, retain and motivate their people.

Visit our blog: www.payscale.com/compensation-todayJoin our Group on LinkedIn: Compensation Today: HR Best Practices

Angela Ulman, CCPCompensation Professional

Mykkah Herner, MA, CCPModern Compensation Evangelist

www.payscale.com