Jennifer Ferris, CCP

Sr. Compensation Professional

Mykkah Herner, MA, CCP

Director of ISX Services

www.payscale.com

www.payscale.com

14,000 Positions

3,000 Customers11 Countries

250 Compensable Factors

40 MillionSalary Profiles

Hi! We’re PayScale.

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Agenda

1 Defining and quantifying turnover

2 Common myths of employee turnover

3 The role of corporate culture in turnover

4 The impact of turnover on your business

5 Setting up your comp plan for success

6 Immediate Actions

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Defining and Quantifying Turnover

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the rate at which people leave a

place, company, etc., and are

replaced by others

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Good Turnover vs. Bad Turnover

Adding good complexity

7

Low performer Average Performer High Performer

Voluntary X% Y% Z%

Involuntary P% D% Q%

Retention is Still a Major Concern

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Retention

Recruitment

Compensation

Engagement

Performance

Culture

Budget / Revenue

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Common Myths of Employee Turnover

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Turnover is Always Bad

http://lolsheaven.com/

Turnover is Bad for Morale

We can predict turnover based on generation

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Turnover is alwaystime-consuming and costly

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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

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The Impact of Turnover on your Business

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• Morale• Engagement• Performance• Training• Knowledge retention• Nimble to market changes• Cost to replace

http://www.corporatelearningnetwork.com/

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Setting up your comp plan for success

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http://businessmodelalchemist.com/blog/2011/11/make-your-business-model-clear-with-vivid-thinking-guest-post-by-dan-roam.html

Clear Strategy

Competitive Market Pay

Solid Base Pay Plan

Incentive Plan

Compensation Strategy

21

What to reward

Level of competitiveness

Talent Market(s)Industry(ies) Size(s) Location(s)

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“I found a salary

report on the

internet and it says

I should be paid

more…”

What is the right compensation mix for my org?

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How many companies are really giving variable pay?

Most do - few don’t: Small companies 28% Medium companies 22%Large companies 20%

Recruitment and Retention Plans

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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?

PayScale Delivers Where Other Compensation Providers Fall ShortPayScale 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-today

Join our Group on LinkedIn: Compensation Today: HR Best Practices

Jennifer Ferris, CCP

Sr. Compensation Professional

Mykkah Herner, MA, CCP

Director of ISX Services

www.payscale.com