The Corporate Chasm

Mykkah Herner, MA, CCPModern Compensation Evangelist

Jennifer Ferris, CCPManager of Professional Services

www.payscale.com

15,000 Positions 3500 Customers 11 Countries

250 Compensable Factors54Million Salary Profiles

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Jennifer Ferris, CCPManager Professional Serviceshttps://www.linkedin.com/in/JenniferFerrisCCP

Mykkah Herner, MA, CCPModern Comp Evangelist@Mykkah_Hernerhttps://www.linkedin.com/in/mykkahherner

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Understanding the Corporate Chasm

Bridging the gaps• Fair Pay• Appreciation• Transparency

Where to start

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Less than 100 Employees100 - 1,000 EmployeesMore than 1,000 Employees

550K Employees SurveyedLess than 1 year 1-4 years

5-9 years 10-19 years

20 years or more

Nearly 7600 Respondents

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Bridging the gaps

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Fair Pay

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63.7% of employees report being paid "below average"

72.5% of employers consider their employees

fairly paid

Hardwired for fairness

Study: https://depts.washington.edu/uwkids/Shaw.Olson.2012.pdf

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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

What can you do?

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Fair pay to the market

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Internal Equity

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Individuals in the same job or job family

Pay based on performance

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Individuals in the same job or job family

Compression within and between roles

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Individuals in the same job or job family

Auditing pay for protected classes

Fair isn’t necessarily equal

P er f or m

an c e ba sed p

ay i nc r eas es

C o s t of l

i vi n

g ad j u

s t men t s

Ma r k et a

d j us t m

en t s

Emp l o

y ee pr o m

o tio n s

R et en ti o n

I nt er n a l p

ay i neq u i ti

e s

50.1

%

20.8

%

9.3%

3.4% 8.

5%

1.9%

Basis for 2015 Raises

For more information: https://hbr.org/2016/03/when-unequal-pay-is-actually-fair

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Appreciation

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45% of respondents feel like they are appreciated at work

78% of employers feel their people are their greatest

asset

Appreciation drives results

Image: http://www.quantumworkplace.com/future-of-work/funny-ecards-for-employee-appreciation-day/

Study: http://www.health.harvard.edu/newsletter_article/in-praise-of-gratitude

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How does perception of pay impact employees?

What can you do?

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Relationship with Manager

67% of respondents report having a great relationship with their direct manager

35.1% of employers cite a bad relationship with direct supervisor or manager as in

the top three reasons people voluntarily leave

EQUIP MANAGERS

Educate ThemGive them the big pictureGive them tools

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Learning & Development

58.2% of employers plan on offering learning and development opportunities in 2016

45.3% of employees "agree" or "strongly agree" that their employer provides them with enough opportunity for learning and development

Spectrum of Learning & Development Activities• Learning management system

• Mentors

• Lunch & Learns

• HR-led manager groups

• Structured succession planning

Showing appreciation through total rewards

54.6%

18.3%35.3%

13.3%

58.2%

28.1%

Plans to recruit and retain high-performing employeesAll

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Transparency

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21% of employees agree that their company is transparent about pay

40% of employers report that they are transparent

about pay

Transparency drives results

Study: https://hbr.org/2014/11/cooks-make-tastier-food-when-they-can-see-their-customers/ar/1

Photo: http://segets.com/restaurant-open-kitchen-layout-design-ideas-1-4974-design.html

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Effective Communication

17% of companies are confident in managers’ ability to have tough pay conversations

82% of employees are ok with low pay if the rationale is explained

What can you do?

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What’s the right amount of information to share?

Pay Transparency

What’s your deal?

Employees and employers are in a relationship where they agree to things

• Exchange of value• Mental math – does it add up?• Ongoing calculation that results

in level of contribution & rewards

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Need help getting started?

• Identify any skills gaps amongst your managers and plan to train in communication

• Audit Learning & Development activities and plan to expand offerings

• Complete a market study to make sure you’re paying fairly

• Review comp plan to determine readiness to share cross org

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

Mykkah Herner, MA, CCPModern Compensation Evangelist

Jennifer Ferris, CCPManager of Professional Services

www.payscale.com