top comp trends of 2016
TRANSCRIPT
The Top Comp Trends of 2016
Paige Hanley, CCPManager, Customer Operations
Jenni Marquez, CCPSenior Compensation Professional
#CompTrends2016
www.payscale.com#CompTrends2016
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Jenni Marquez, CCPSenior Compensation Professional
https://www.linkedin.com/in/jennimarquez
Paige Hanley, CCPManager, Customer Operationshttps://www.linkedin.com/in/paige-hanley
#CompTrends2016
www.payscale.com
Major trends of 2016
Should I hop on that train?
Looking forward to 2017
Things to do today
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Major Compensation Trends
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Compliance
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FLSA
Minimum Wage
Others
Gender Pay Equity#CompTrends2016
48/50 States have some version of a pay equity law on the books
9/10 Provinces* have some version of a pay equity law on the books
x
xxx
4 states added pay equity laws, 9 in progress
x x
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Mix
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What is the Right Compensation Mix?
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The variable pay umbrella
Incentive Project Bonus Retention Bonus Signing Bonus Perks
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What type of bonus?
15.8% 18.1%
61.8%
25.7%40.0%
14.4%
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Get CreativePasses to sporting eventsCatered lunches for winning teamsDays off after big deadlinesChoice of work assignmentDevelopment opportunities Lunch with the CEORemote work
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Performance
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44% of companies said
shifting from traditional performance reviews
in favor of real-time feedback
When asked what would shake up the HR world most in 2016…
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Align to business goals & cycles
Pay for results
Get creative
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Linking Pay to Performance
Culture and perks that reward high performers
Higher increases for top performers
Results-based incentive plan
Performance-based rewards & recognition
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Market
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Greater awareness of market
2.5% Oct unemployment for college educated 25+
29% Pay boost commanded by premium skills like Scala
60% Of employees who feel underpaid intend to leave
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Use market data and strategy to drive comp decisions
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EqualFair
A note on fairness: Fair doesn’t necessarily mean equal
Differentiate* Pay byPerformance
ResultsExperience
SkillsEducation
*Be aware of legal restrictions
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Transparency
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TOP-PERFORMING
of Top-Performing companies are transparent about pay
47%
Vs 40% of all companies
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The PayScale Pay Transparency Spectrum
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of employees are ok with low pay if the rationale is explained
82%
of companies are confident in managers’ ability to have tough pay conversations
80% of employees paid above market believe they’re paid at or below
17%
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Should I hop on that train?
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It’s not a best practice if it’s not best for
your organization
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Baby Boomers 1946 – 1964 Size: 74MCommunication
About Comp:Private
Average Tenure:15 Years
Career Mindset:Loyal
Self-drivenHigh Work Ethic
Retirement
Generation X 1965 – 1979 Size: 66MCommunication
About Comp:Semi-private
Average Tenure:5 Years
Career Mindset:PessimisticSelf-reliant
Work/Life BalanceManagement
Millennials 1980 – 1995 Size: 74MCommunication
About Comp:Public
Average Tenure:18-24 Months
Career Mindset:Idealistic
Fairness, Flexibility, Values Work/Life Balance
Advancement
Generation Z 1996 – Present Size: TBD, 69M+Communication
About Comp:Semi-private
Average Tenure:TBD
Career Mindset:Realistic
Multicultural FluencyTechnology Native
Learning with a Purpose#CompTrends2016
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FiveGenerations
of 2020
Gen Z
Millenials
Gen X
Baby Boomers
Traditionalists
Bureau of Labor Statistics Employment Projections
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Pay structure may differ
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Consider
org culture and valuesworkforce preferences
industry or regional normsjob level and/or function
company life cyclebudget…
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What can we expect?
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Oval office to your office…
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CompliancePerformanceTransparency
MarketMix
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Things to do today
• Celebrate 2016 accomplishments• Sign up with state and local compliance lists• Audit your performance practices• Decide what and how much info to share• Complete a market study • Evaluate your mix of pay
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Jenni Marquez, CCPSenior Compensation Professional
Paige Hanley, CCPManager, Customer Operations
www.payscale.com
#CompTrends2016