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How to Communicate Comp to Executives and Managers
Paige Hanley, CCPSr. Compensation Professional
Mykkah Herner, MA, CCPDirector of Professional Services
www.payscale.com
www.payscale.com
14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors41 Million Salary Profiles
www.payscale.com
AgendaA Note on Transparency and Communication
Communicating with Executives• Understand the executive audience• Prepare talking points• Provide helpful reporting
Communicating with Managers• Set expectations• Train managers in compensation and communication• Provide helpful reporting
Immediate Action
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Market Study and Processes
known
Transparency Spectrum
Pay Transparency
Trust
Better Business Outcomes!
Engagement
Why Would Anybody be More Transparent about Pay?
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Employees who perceive a ‘fair and transparent pay practice’ have lower intent to leave and higher satisfaction
PERCENT OF RESPONSES
LOW AVERAGE HIGH
50% 31% 19%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
1 2 3 4&5
% Responses with Intent to Leave % Responses with High Satsifaction
Intent to leave
Satisfaction
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Communication Roles
Executives• Communicate program to organization at a high level
Managers• Communicate compensation details to employees
Employees• Bring questions to manager or
HR
HR• Prepare communication, consult and inform Executives, train Managers
Talking about pay isn’t always fun
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 & OFTEN
9
Communicating with Executives
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• Understand the executive audience
• Align compensation with business objectives
• Incorporate leading edge practices
• Keep executives up to date
Exec communication tips
What do your executives care about?
Benefits of Comp Plans
13
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Key Messages to Executives while Developing your Plan
Strategy
Introduction to Project
Manager Training Messaging
Policies & Guidelines
Results & Approval
Prepare Talking Points• Compensation philosophy & purpose• Compensation plan changes at the highest level• Market study & results• Next steps – talk with managers
Report High Level Info
o Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc)o Report these on a regular basis
Communicating with Managers
17
of company leaders do not feel confident in their managers’
ability to effectively communicate with employees
about salary issues.
2014 PayScale CBPR
73%
AGENTS OF THE ORGANIZATION
EQUIP MANAGERS
Set expectations
Educate them
Give them the big
picture
Give them tools
Negotiation Skills
• Sell the organization and 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
Listening Skills
23
Identify Creative SolutionsConsider Workplace “Currency”
Know what motivates your employees Additional/Alternative Perks FTE preference Staggered increase or offer PTO Work assignments Development opportunities
The compensation review meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up
Provide Talking Points
• Compensation Philosophy
• Market Study / results
• Structure Overview
• Position in range
• Adjustment
• Rationale
• Open the door
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”
Train ManagersCompensation Plan Overview
• Compensation 101
• Compensation Plan Infoo Philosophyo Strategyo Structureo Policieso Processes
Putting comp into practice
• Linking Performance to Pay
• Calculating Increases
• Talking with Employees
Report Relevant Info
Give them tools for success:
o Flight Risk report & the inverse report
o Disparate Pay report
Give them insight into what employees care about
o Am I making enough money to cover my basic needs (entry level)
o Am I being paid fairly (professional level)
o Am I being paid enough to deal with managing people (Mgrs/Dirs)
Give them talking points for comp conversations with employees
Immediate Actions • Evaluate your comp plan to the market
• Determine ways to increase transparency within your organization
• Offer communication training for executives, managers, and employees
• Prepare high level messages about compensation
• Prep toolkits for your managers to use when communicating with employees
PayScale Delivers Where Other Compensation Providers Fall Short
PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 40 million salary profiles. More than 3000 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, CCPDirector of Professional Services
Paige Hanley, CCPSr. Compensation Professional
www.payscale.com
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