how to communicate comp to executives and...
TRANSCRIPT
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How to Communicate Comp to Executives and Managers
Paige Hanley, CCPSr. Compensation Professional
Mykkah Herner, MA, CCP
Director of Professional Services
www.payscale.com
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14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors41 Million Salary Profiles
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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
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Pay Transparency
Trust
Better Business Outcomes!
Engagement
Why Would Anybody be More Transparent about Pay?
www.payscale.com
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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
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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
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Talking about pay isn’t always fun
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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
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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
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What do your executives care about?
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Benefits of Comp Plans
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Key Messages to Executives while Developing your Plan
Strategy
Introduction to Project
Manager Training Messaging
Policies & Guidelines
Results & Approval
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Prepare Talking Points• Compensation philosophy & purpose
• Compensation plan changes at the highest level
• Market study & results
• Next steps – talk with managers
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Report High Level Info
o Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc)
o Report these on a regular basis
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Communicating with Managers
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of company leaders do not feel
confident in their managers’
ability to effectively
communicate with employees
about salary issues.
2014 PayScale CBPR
73%
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AGENTS OF THE ORGANIZATION
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EQUIP MANAGERS
Set expectations
Educate them
Give them the big picture
Give them tools
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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
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Listening Skills
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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
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The compensation review meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up
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Provide Talking Points• Compensation Philosophy
• Market Study / results
• Structure Overview
• Position in range
• Adjustment
• Rationale
• Open the door
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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 low
o Pay is high
o No increase due to performance
o “I found this on the internet”
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Train Managers
Compensation 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
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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
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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
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Mykkah Herner, MA, CCPDirector of Professional Services
Paige Hanley, CCPSr. Compensation Professional
www.payscale.com