4 ways to communicate compensation that drive strategic outcomes

4 Ways to Communicate Compensation to Drive Strategic Outcomes ways to communicate compensation that drive strategic outcomes bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Rusty Lindquist Mykkah Herner VP STRATEGIC HR INSIGHTS DIRECTOR OF ISX SERVICES BAMBOOHR PAYSCALE bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Value Perception Crisis It’s time to blow up HR and build something new Rethinking HR Why we love to hate HR What will it take to fix HR It’s time to split HR HR faces a crisis of credibility in the boardroom HR is our “favorite corporate punching bag” bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Evolution of HR H Strategic Business Value Operational L Micro bamboohr.com Small Mid Large Transactional HR High-Impact HR HR viewed as a cost center HR as a strategic investment payscale.com HR HIERARCHY OF NEEDS Business Value (Culture, Performance, Engagement, Satisfaction, Employment Brand, Advising Talent Management, Succession Planning, Learning & Development…) Strategic Operations (Operational Efficiency: HRIS, Records, Talent Acquisition, Compliance Tracking, Etc.) General Operations (Payroll, Benefits, Time & Attendance, etc.) Basic Operations Ways to Communicate Compensation to Drive Strategic Outcomes bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Payroll is, by far, a company’s biggest expense; the cost of getting it wrong is tremendous bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Creating Pay Transparency in the Workplace bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Defining Transparency bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Transparency Spectrum bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Employee Value Drivers Experience in industry Experience in market vertical Experience in adjacent markets Experience in field of discipline Experience in adjacent disciplines Value Experience with competitors Product knowledge Competitor knowledge Education Time and experience in company Discipline training and certification Supply and demand bamboohr.com Employer Value Drivers Base pay Performance Pay Paid time off Benefits Travel Culture and environment Exchange Autonomy Work flexibility Work/Life balance Who you work with Meaningful work Challenging work Opportunity to impact Job security Senior leadership Shared purpose / mission Career advancement opportunities payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes 73 % of company leaders not feel confident in their managers’ ability to effectively communicate with employees about salary issues 2014 PayScale CBPR bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Agents of the Organization bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Equip Managers • Set expectations • Educate them • Give them the big picture • Give them tools bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Identify Creative Solutions Consider Workplace “Currency”  Know what motivates your employees  Additional/Alternative Perks  FTE preference  Staggered increase or offer  PTO  Work assignments  Development opportunities bamboohr.com 34 payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes The Compensation Review Meeting Prepare for the meeting Deliver feedback and listen Follow up bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Provide Talking Points • Compensation Philosophy • Adjustment • Market Study / results • Rationale • Structure Overview • Open the door • Position in range bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Prepare Manager Toolkits • • • • bamboohr.com 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 low o Pay is high o No increase due to performance o “I found this on the internet” payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Report Relevant Info Give them tools for success: • Flight Risk report & the inverse report • Disparate Pay report Give them insight into what employees care about • Am I making enough money to cover my basic needs (entry level) • Am I being paid fairly (professional level) • Am I being paid enough to deal with managing people (Mgrs/Dirs) Give them talking points for comp conversations with employees bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Communication Tips • Know your audience • Watch the jargon • Don’t present issues without a way forward • Prepare, prepare, prepare • Be direct and also empathetic • Communicate early and often bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Align With Strategy bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Focus on Outcomes bamboohr.com payscale.com Who are our key partners? What key activities our value propositions require? What value we deliver to the customer? Our distribution channels? Which one of our customer’s problems are we helping to solve? Who are our key suppliers? Which key resources are we acquiring from partners? Which key activities partners perform? Customer relationships? Revenue Streams? What bundles of products and services are we offering to each Customer Segment? What type of relationship does each of our Customer Segments expect us to establish /maintain with them? For whom are we creating value? Who are our most important customers? Which ones have we established? How are they integrated with the rest of our business model? Which customer needs are we satisfying? What Key Resources our Value Propositions require? Through which Channels our Customer Segments want to be reached? Our Distribution Channels? How are we reaching them now? Customer Relationships? Revenue Streams? How are our Channels integrated, and which ones work best, or are most costefficient? How are we integrating them with customer routines? What are the most important costs inherent in our business model? For what value are our customers really willing to pay? For what they currently pay? Which Key Resources are most expensive? How are they currently paying? (How would they prefer to pay?) Which Key Activities are most expensive? How we report on this “revenue” to the rest of the organization? Ways to Communicate Compensation to Drive Strategic Outcomes Thank you! Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com/compensation-today bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes 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 PayScale Download our free eBook: Communicating Compensation: Your guide to tackling tough conversations about pay bamboohr.com payscale.com ... Ways to Communicate Compensation to Drive Strategic Outcomes Compensation: The story of how much you are valued bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes. .. bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Transparency Spectrum bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Pay Transparency... payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes Creating Pay Transparency in the Workplace bamboohr.com payscale.com Ways to Communicate Compensation to Drive Strategic Outcomes