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Jennifer Ferris, CCPSr. Compensation Professional
Mykkah Herner, MA, CCPDirector of ISX Services
www.payscale.com
Ivan HurttS E N I O R P R O D U C T M A N A G E R
B A M B O O H R
www.linkedin.com/in/ihurtt
Mykkah HernerM O D E R N C O M P E V A N G E L I S T
P A Y S C A L E
@mykkah_herner
www.linkedin.com/in/mykkahherner
A Changed Perspective
Millennials will comprise 75% of the global workforce by 2025. - Deloitte
Millennials
91% of Millennials expect to stay with your company fewer than three years. – Future Workplace
v75%
v91%
Average tenure for Millennials is 2 years (5 years for Gen X)– Payscale
v2yrs
43%
1yr
90-200%
Within the next 10 years, 43% of the US workforce will be eligible for retirement- Forbes
Baby Boomers
Among the jobs that 39-44 year olds began, one third ended in less than a year– Forbes
Cost of replacing an employee is between 90-200% of their annual salary.– SHRM
83%
23m
52%
83% Of executives say they’re increasing contingent workers.- Oxford Economics
Contingent Workers
There’s projected to be 23 million contingent workers by 2017 (up 26% in 2 years)– MBO Partners
52% of Millennials expect to work independently (82% in emerging markets).– Deloitte
• Workforce competency and skills gap
• Increased competition
• Globalization
• Culture
• Competition for talent
• Stresses on work-life balance
• Etc.
Additional Dynamics
–Bersin by Deloitte
–Ram Charan Best-selling Author, World-renowned Business Advisor
Defining and Quantifying Turnover
the rate at which people leave a place, company, etc., and are replaced by
others
Good Turnover vs. Bad Turnover
Add good complexity
Low Performer
High Performer
VoluntaryInvoluntary
Retention is Still a Major Concern
PayScale 2016 CBPR
Retention Compensation
Recruitment
Engagement
Development
Common Myths of Employee Turnover
Turnover is Always Bad
http://lolsheaven.com/
Turnover is bad for morale
Image: https://www.funergizers.com/3-Massive-Mistakes-Which-Lead-to-Low-Staff-Morale
We can predict turnover based on generation
Turnover is alwaystime-consuming and costly
The Role of Corporate Culture in Turnover
Next Gen vs Traditional Organization
Flexible work environment
Training ground
Strong leadership
Transparency of decisions and pay
Industry and/or job function
Millennials vs Highly tenured
"HR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources—workforce talent."
-Matthew D. BreitfelderHBR: “Why did we ever go into HR”
BusinessValue
H
L
Strategic
Operational
Micro Small Mid Large
HR viewed as a cost centerTransactional HR High-Impact HR
HR as a strategic investment
Evolution of HR
BusinessValue
H
L
Strategic
Operational
Micro Small Mid Large
Evolution of HR
HR viewed as a cost centerTransactional HR High-Impact HR
HR as a strategic investment
Understand your true worthas a strategic necessity
Eliminate the unnecessaryshed all the dead weight
Organize your informationto lay a foundation for insight
Automate the operationalset yourself free to do great work
Maximize business valuealign activities to strategic outcomes
Solve meaningful problemslearn to think, act, and win like a business.
Measure and reportthe value and impact of your work
ESCAPE ELEVATE
The Impact of Turnover on your
Business
• Morale• Engagement• Performance• Training• Knowledge retention• Nimble to market changes• Cost to replace
http://www.corporatelearningnetwork.com/
Setting Your Comp Plan Up for Success
http://businessmodelalchemist.com/blog/2011/11/make-your-business-model-clear-with-vivid-thinking-guest-post-by-dan-roam.html
Solid Base Pay Plan
Clear Strategy
Incentive Plan
Competitive Market Pay
What is the right compensation mix for my org?
Compensation Strategy
Talent Market(s)
Industry Size
Location Org type
Level of competitiveness
How aggressively
to pay
What to reward
Performance, Experience,
etc
How do organizations use variable pay?
15.8% 18.1%
61.8%
25.7%40.0%
14.4%
PayScale 2016 CBPR
Recruitment and Retention Plans
Merit-base
d pay plan
Non-discretionary
incentive
based pay p
lan
Discretionary
bonus plan
Stock option/g
rant plan
Learning and developmental o
pportunities
More perks-gym
membersh
ips, ca
tered lunch
, etc
Other (please
specif
y)0.0%
10.0%20.0%30.0%40.0%50.0%60.0%70.0%
2016 Plans for Recruiting and Retaining Top Performers, by Company Size
Less than 100 Employees 100 - 1,000 Employees More than 1,000 Employees
PayScale 2016 CBPR
“I found a salary
report on the
internet and it says
I should be paid
more…”
Immediate Actions
Calculate turnover rate
Identify good and bad turnover
Brainstorm retention efforts that work
Evaluate your comp plan – does it align with org objectives for retention?
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bamboohr.com/blog | payscale.com
Thank you!
Questions?BambooHR
Check out ondemand videos for Elevate at https://www.bamboohr.com/elevate/
Download our free ebook Turnover: The Good, The Bad, and The Ugly athttp://resources.payscale.com/hr-whitepaper-turnover-the-good-the-bad-
and-the-ugly.html
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