5 steps to a smart compensation plan

5 Steps to a Smart Compensation Plan bamboohr.com payscale.com Steps to a Smart Compensation Plan bamboohr.com Rusty Lindquist Rita Paterson, CCP V P S T R AT E G I C H R I N S I G H T S M A N A G E R O F C U S T O M E R E D U C AT I O N BambooHR Payscale payscale.com Steps to a Smart Compensation Plan steps to set up your compensation plan Gain executive support Define your compensation strategy Develop a market-based pay structure Build pay ranges Implement a total rewards plan bamboohr.com payscale.com Steps to a Smart Compensation Plan Step 1: Gain Executive Support bamboohr.com payscale.com Steps to a Smart Compensation Plan Payroll is, by far, a company’s biggest expense; the cost of getting it wrong is tremendous bamboohr.com payscale.com Steps to a Smart Compensation Plan Executives must care about compensation if they care about retention Pay is the number reason people quit jobs [BambooHR study] If employees aren’t being paid what they’re worth, they will find it somewhere else bamboohr.com payscale.com Steps to a Smart Compensation Plan Top Compensation Mistakes • Not updating compensation regularly • Not empowering managers to fix problems • Not being transparent • Giving across-the-board raises • Not having a structured plan bamboohr.com payscale.com Steps to a Smart Compensation Plan Compensation plans help the bottom line They make good business sense They help attract and retain talent They support your company’s mission, strategy and culture bamboohr.com payscale.com – Ram Charan Best-selling Author, World-renowned Business Advisor Steps to a Smart Compensation Plan “If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it, you almost don’t have to manage them.” —Jack Welch bamboohr.com payscale.com Steps to a Smart Compensation Plan Using Pay Ranges Evaluating employee placement in range Developing guidelines or policies for movement bamboohr.com payscale.com Steps to a Smart Compensation Plan Assign Jobs to Grades Use market data Verify internal alignment bamboohr.com payscale.com Steps to a Smart Compensation Plan Senior Accountant Build Career Path Accountant I Accounting Assistant • Administrative Accounting Functions to support AP & AR • • • Update General Ledger AP / Vendor Relations AR Grade Grade Grade E Grade C Basic Function & Key Differentiators Accountant II • • Maintain General Ledger Prepare financial reports • • • Interpret financial reports and statements for management Analyze financial data Prepare budgets Degree & Certification Requirements None Bachelor’s Degree No certification required Bachelor’s Degree CPA required at proficiency Bachelor’s Degree CPA required at start Critical Skills at proficiency • • • • Attention to Detail Excel Data Entry Quickbooks • • Attention to Detail Quickbooks • • • • GAAP General Ledger Monthly Reconciliation Financial Reporting • • • • GAAP Financial Reporting Financial Analysis Budgeting Years of Experience • 1-2 at proficiency • 3-5 at proficiency • 5-7 at proficiency • 8-10 at proficiency bamboohr.com payscale.com Steps to a Smart Compensation Plan Step 5: Implement Total Rewards Plan bamboohr.com payscale.com Steps to a Smart Compensation Plan Compensation Plan Element • Philosophy • Strategy • Ranges • Policies • Processes bamboohr.com payscale.com Steps to a Smart Compensation Plan Budgeting for Increases bamboohr.com payscale.com Steps to a Smart Compensation Plan Deal with Outliers bamboohr.com payscale.com Steps to a Smart Compensation Plan Strategies: Equip Managers • Educate them • Give them the big picture • Give them tools bamboohr.com payscale.com Steps to a Smart Compensation Plan What can we now? Talk with executives about the need for an updated compensation plan Research market data for your employees’ jobs Create a pay structure to ensure internal equity Review your current compensation policies and decide where updates are needed bamboohr.com payscale.com Steps to a Smart Compensation Plan COMP & CULTURE bamboohr.com payscale.com Steps to a Smart Compensation Plan Everything you becomes part of that story… The story of what you value bamboohr.com payscale.com Steps to a Smart Compensation Plan Compensation: The story of how much you are valued bamboohr.com payscale.com Steps to a Smart Compensation Plan Compensation: The keystone of culture bamboohr.com payscale.com Steps to a Smart Compensation Plan Thank you! Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com/compensation-today bamboohr.com payscale.com Steps to a Smart Compensation Plan 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 ... payscale.com Steps to a Smart Compensation Plan Budgeting for Increases bamboohr.com payscale.com Steps to a Smart Compensation Plan Deal with Outliers bamboohr.com payscale.com Steps to a Smart Compensation. .. pay ranges Implement a total rewards plan bamboohr.com payscale.com Steps to a Smart Compensation Plan Step 1: Gain Executive Support bamboohr.com payscale.com Steps to a Smart Compensation Plan. .. Point Factoring bamboohr.com payscale.com Steps to a Smart Compensation Plan Choose the right data source bamboohr.com payscale.com Steps to a Smart Compensation Plan Step 4: Build Pay Ranges bamboohr.com