communicating compensation to executives and managers
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Communicating Compensation to Executives and Managers
4 ways to communicate compensation
that drive strategic outcomes.Communicating CompensationTo Executives and Managers
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Communicating Compensation to Executives and Managers
Todd GriersonH E A D I N D U S T R Y R E L A T I O N S
A T B A M B O O H R
Mykkah HernerM O D E R N C O M P E N S A T I O N
E V A N G E L I S T A T P A Y S C A L E
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Communicating Compensation to Executives and Managers
1Three Perspectives on
Compensation Communication
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Communicating Compensation to Executives and Managers
Pudgy desk on fire
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Communicating Compensation to Executives and Managers
HR wants to be involved in handling bigger issues that directly impact the
company and its bottom line.1
The August 2014 study collected responses via an online survey from 1,307 U.S.-based HR professionals (the majority of whom [75 percent] have worked in the HR industry for 10+ years) who are currently employed by small (<50 employees) to large (500+ employees) businesses. This research was generated by BambooHR and HR Daily Advisor.
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Communicating Compensation to Executives and Managers
Edit typo
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Communicating Compensation to Executives and Managers
Pudgy conveyor belt from pitch deck
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Communicating Compensation to Executives and Managers
How does perception of pay impact employees?
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Communicating Compensation to Executives and Managers
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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Communicating Compensation to Executives and Managers
of employees are ok with low pay if the rationale is explained
—PayScale Employee Survey 2015
82%
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Communicating Compensation to Executives and Managers
v
HOW
WHY
ValuesMissionBeliefs
Culture | Corp. Brand
WHAT
Start with Why
OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE)
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Communicating Compensation to Executives and Managers
“People are motivated by consequences they anticipate.”
—Crucial Conversations
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Communicating Compensation to Executives and Managers
BambooHR Core Values
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Communicating Compensation to Executives and Managers
1
Understanding Pay Transparency
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Communicating Compensation to Executives and Managers
Defining Transparency
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Communicating Compensation to Executives and Managers
Transparency Spectrum
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Communicating Compensation to Executives and Managers
Pay Transparency gets everyone in the same
boat, paddling in the same direction.
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Communicating Compensation to Executives and Managers
Why Would Anybody be More Transparent about Pay?
Pay Transparency
Trust
Better Business Outcomes!
Engagement
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Communicating Compensation to Executives and Managers
www.payscale.com
Talking about payisn’t always fun
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Communicating Compensation to Executives and Managers
1
Communicating with Executives
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Communicating Compensation to Executives and Managers
www.payscale.com
• Understand the executive audience
• Align compensation with business objectives
• Incorporate leading edge practices
• Keep executives up to date
Exec communication tips
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Communicating Compensation to Executives and Managers
What do your Executives Care About?
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Communicating Compensation to Executives and Managers
Benefits of Comp Plans
23
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Communicating Compensation to Executives and Managers
Prepare Talking Points
• Compensation philosophy and purpose
• Compensation plan changes at the highest level
• Market study and results• Next steps—talk with managers
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Communicating Compensation to Executives and Managers
Report High Level Info• Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc.)• Report these on a regular basis
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Communicating Compensation to Executives and Managers
1
Communicating with Managers
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Communicating Compensation to Executives and Managers
Compensation is about an exchange of value,
not money.
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Communicating Compensation to Executives and Managers
Value Exchange
Experience in industry
Experience in market vertical
Experience in adjacent markets
Experience in field of discipline
Experience in adjacent disciplines
Experience with competitors
Product knowledge
Competitor knowledge
Time and experience in company
Education
Discipline training and certification
Supply and demand
Employer Value DriversEmployee Value Drivers
Base payPerformance Pay
Paid time offBenefits
TravelCulture and environment
Work flexibilityWork/Life balance
Meaningful workWho you work with
Challenging workOpportunity to impact
Job security
Shared purpose / missionCareer advancement opportunities
Autonomy
Senior leadership
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Communicating Compensation to Executives and Managers
of companies are confident in managers’ ability to have tough pay conversations 2016 PayScale Compensation Best Practices Report17%
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Communicating Compensation to Executives and Managers
Agents of the Organization
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Communicating Compensation to Executives and Managers
Equip Managers• Set expectations• Educate them• Give them the big picture• Give them tools
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Communicating Compensation to Executives and Managers
Negotiation Skills• Sell the organization & the full package on the table• Sell the benefits of the offer (initial or increase)• Listen to the ask behind the ask• Meet them and then move
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Communicating Compensation to Executives and Managers
33
Consider Workplace “Currency”
Know what motivates your employees Additional/Alternative Perks FTE preference Staggered increase or offer PTO Work assignments Development opportunities
Identify Creative Solutions
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Communicating Compensation to Executives and Managers
The Compensation Review Meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up
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Communicating Compensation to Executives and Managers
Prepare Manager Toolkits
• Compensation Plan Talking Points• Compensation Plan Information• Details for each employee they supervise• Tips for each type of conversation they may have
o Pay is low or perceived to be lowo Pay is higho No increase due to performanceo “I found this on the internet”
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Communicating Compensation to Executives and Managers
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Thank you!
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Communicating Compensation to Executives and Managers
Questions?BambooHR
Receive a free job posting on our ATS and full HRIS for one week.We will contact everyone within the next few days to set this up.
Download our free eBook: Communicating Compensation: Your guide to tackling tough conversations about pay
PayScale
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Communicating Compensation to Executives and Managers
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