hot jobs: identifying and compensating critical workforce
TRANSCRIPT
Hot Jobs: Identifying and
Compensating Critical Workforce
Segments
Jeremy Feinstein, Empsight
Gregory Stoskopf, Deloitte Consulting
Sheila Sever, Deloitte Consulting
Justin Sun, Nordstrom
Our Team
Managing DirectorEmpsight International [email protected]
Jeremy Feinstein
Managing DirectorDeloitte Consulting [email protected]
Greg Stoskopf, CCP
Senior ManagerDeloitte Consulting [email protected]
Sheila C. Sever, CCP
Senior Compensation [email protected]
Justin Sun
US economic landscape
Frequent new skills and strategic “Hot Job” requests
The goal of this session is to be able to answer the
following important questions:
How should hot jobs be identified and categorized?
Which hot jobs are critical to an organization?
How can hot jobs be handled from a compensation
perspective?
Introduction
Jeremy Feinstein
Empsight International LLC
What’s Hot and What’s Not
Newness requirement is not absolute, as demonstrated by
the surge in demand for older IT skills, such as common
business-oriented language (COBOL) programmers
immediately prior to the year 2000 (Y2K)
What’s Hot and What’s Not?
Defining a Hot Job
Defining a hot job:
New in the marketplace
Demand for skilled talent currently outstrips the labor
supply
Hotness is a dynamic and unpredictable process which
benefits from structured analysis
A hot job may not necessarily be a position that is critical to
the company
What’s Hot and What’s Not?
Defining a Hot Job
Life Cycle of a Hot Job
New Jobs and Skills Are
Required by the Labor Market
Hot Jobs Emerge with Premium Pay
Employees receive
education and training for Hot Skills
Demand for Hot skills are
Met – Hot jobs integrated into
mainstream benchmarks
New Business Models,
Regulations, and
Technologies Emerge
Name any jobs you have seen as “hot”,
either now or in the past
Don’t worry if they do not exist anymore!
Group Exercise
“Hot Jobs”
Factors Impacting Hot Job Supply And
Cycle Movement
External
Training
Trade
Association
Training
Degrees &
Certification
Programs
Internal
Training
On the Job
Training
Specialized
Company
Training
Based on preliminary results from a 2016 survey, Empsight
received data on newly-created jobs requiring specialized
in-demand skills. Results from the survey identify the
following job families as being hot jobs in the marketplace:
Identifying Today’s Hot Jobs
Greg Stoskopf
Deloitte Consulting LLP
Critical Workforce Segmentation
It’s important not to panic just because a job appears in a
hot jobs article or survey
Companies can use critical workforce segmentation to
identify and differentiate important hot jobs in their
organization from hot jobs in the marketplace that are less
essential
Identifying Hot Jobs That Are Vital to
Your Organization
Many, but not all, hot jobs are also defined as critical
workforce segments
Defining a Critical Workforce Segment
A critical workforce segment is defined as jobs or job
families in the organization which meet two criteria:
1. They have a disproportionate impact on the value
chain of the organization (i.e., they play a key role in
creating or delivering value)
2. They are in short supply in the market
Four Segments of the Workforce
Specialists
Skills cannot be
developed effectively
Flexible Labor
Alternatives to fulfill high
demand for employees or
the need to lower costs
Critical Workforce
Segments
Highly skilled individuals
drive disproportionate value
Core Workforce
Company’s Infrastructure
Identifying the key talent segments
that produce the most value will
enable the organization to make
investments that yield the greatest
return.
Organizations can segment their workforce into four distinct groups
by plotting their impact on the value chain versus the difficulty to
replace their skills
CWS (Ex: Engineer)
Core (Ex: Accountant)
Flexible (Ex: Groundskeeper)
Specialists (Ex: eCommerce, Cloud,
mobile apps)
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Impact on Value Chain
Difficulty o
f R
ep
lacin
g S
kill
s
Example: Critical Workforce
Segmentation
Specialists
• Bio med IT
• EMR build analysts
• Finance specialists-
reimbursement
• Clinical educators
• Legal
• Billing coding
• Care coordinators
• Supply chain
Flexible Labor
• Non-licensed assistants
• Non-clinical
‒ Facilities
‒ Food service
• Purchasing
• Accounts payable
Critical Workforce Segments
Core Workforce
• Core nursing
• Nursing leadership
• Ambulatory care
• Social work
• Operational managers
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ills
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Impact on Value Chain
• Specialty clinical
managers
• Quality & regulatory
• Clinician associate
• Specialties
• Oncology
• Neuro
• Plastics
• High-tech surgery
• Acute care nurse
practitioners
• Surgical technicians
• Profusionists
• Specialized nurse execs
• OR director and nurses
• CMIO
• Pediatric pharmacist
• Transplants
• Tertiary care
• Pediatric research
• PA
• Physician relations
• Managed care
• Program managers
Sheila Sever
Deloitte Consulting LLP
Rewards for Critical Workforce
Segments
Companies often struggle to identify what is
competitive compensation for hot jobs
Competitiveness also depends on whether the hot
job is identified as a critical workforce segment in
their organization
If the job is part of a critical workforce segment,
companies may use a variety of strategies to
compensate the hot job
Differentiating Rewards for Hot Jobs
and Critical Workforce Segments
Differentiating Rewards
Base Pay
Pay Premium Hot Skills Surveys
Benchmark hot jobs against standard
benchmark positions and apply a
pay premium for the hot skill or
criticality of the role.
Benchmark a hot job using
specialized hot skills surveys and
pay the competitive market rate for
those jobs.
Differentiating Rewards
Incentives
Additional STI LTI Grants
Award additional short-term
incentives (STI) above and beyond
the normal award the job would
receive if it weren’t a hot job or critical
workforce segment role.
Award substantial long-term
incentive (LTI) grants, irrespective of
grade level and whether the job is
normally eligible to receive.
Empsight 2016 Pay Strategy Practice Trends
Hot Jobs and Critical Workforce Trends
0%
10%
20%
30%
40%
50%
60%
70%
PayPenetration
PayPremiums
Long TermIncentives
StructureModification
/ GradeAssignment
Hot SkillsSurveys
OtherStrategies
Short TermIncentives
Hot Job Life Cycle vs. Pay Strategy
Anticipated Time as “Hot Job”
Short Term Long Term
Additional
short term
incentives
and/or
retention
awards
Benchmark
using hot jobs
surveys to
award “hot job”
pay as a
separate line
item
Target a higher
place in the
range or add a
pay premium
for hot skills (included in
regular base pay)
Additional
long term
incentives
Appropriate Compensation Techniques
Compensating Critical Workforce
Segments
Specialists
Typical Rewards from
established Compensation &
Benefits Programs and
Policies
Retention Awards: As
needed to retain talent and
meet organization objectives
Flexible Labor
Typical Rewards from
established Compensation &
Benefits Programs and
Policies
Critical Workforce Segments
Base Pay: Targeted at 60-75th percentile
(through higher pay grade or higher placement in the range)
Short-Term Incentives: Targeted at 75th percentile (through
higher tier/target level or discretionary awards)
Long-Term Incentives: Eligible, irrespective of typical
competitive practice
(awards may be made at hire, annually or on a discretionary basis)
Retention Awards: As needed to retain talent and meet
organization objectives
Core Workforce
Typical Rewards from
established Compensation &
Benefits Programs and
Policies
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Impact on Value Chain
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