The Pay Transparency Challenge Deciding Where to Fall on the Salary Transparency Spectrum Mykkah Herner, MA, CCP Director of Professional Services Paige Hanley, CCP Sr. Compensation Professional
14,000 Positions 3000 Customers 11 Countries 41 Million Salary Profiles 250 Compensable Factors www.payscale.com
Agenda • Pay Transparency Matters • Defining Transparency • The Transparency Spectrum • Moving to Greater Transparency • Immediate Actions www.payscale.com www.payscale.com
www.payscale.com
Why Would Anybody be More Transparent about Pay? Better Business Outcomes! Engagement Trust Pay Transparency www.payscale.com
Employees who perceive a ‘fair and transparent pay practice’ have lower intent to leave and higher satisfaction LOW AVERAGE HIGH PERCENT OF 50% 31% 19% RESPONSES 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1 2 3 4&5 % Responses with Intent to Leave % Responses with High Satsifaction www.payscale.com
Workforce Demographics… www.payscale.com
… are changing www.payscale.com
Everybody’s doing it… www.payscale.com
… whether they want to or not • CEO to worker ratios • 990s • Say on Pay www.payscale.com
Defining Transparency www.payscale.com
What are we being transparent about? • Pay Philosophy • Pay Strategy • Pay Practices • Market Studies • Pay Rates www.payscale.com
Pay Philosophy www.payscale.com
Pay Strategy • Defining the competition • Aiming to meet or exceed the competitions • Deciding what matters • Acknowledging various segments www.payscale.com
Pay Practices • We have a plan • Jobs have grade assignments • Range minimums / Range maximums • Increase process / cycle • Budget process / cycle www.payscale.com
Market Studies www.payscale.com
Salary Rates www.payscale.com
The Transparency Spectrum www.payscale.com
Market Study and Processes known www.payscale.com
1. Only own pay
2. Manager & Employee Talk About Pay • Philosophy shared with managers • High level strategy shared with managers • “We have a plan” shared with managers • Manager & Employee discuss EE pay
3. Company Pay Philosophy • Philosophy shared with employees • Strategy shared with managers • “We have a plan” shared with Ees; ranges shared with Ees & Mgrs • We do a market study • Manager & Employee discuss EE pay
4. Market Study and Comp Processes known • Philosophy explained to employees • High level strategy shared with Ees; full strategy shared with mgrs • Mgrs know all ranges to their level; EEs know ranges in their path and how to advance • Market study provider known; EE to mkt results known by EE • Manager & Employee discuss EE pay
5. Managers Trained to Talk Pay • Philosophy explained to employees • High level strategy shared with Ees; full strategy shared with mgrs • Mgrs know all ranges to their level; EEs know ranges in their path and how to advance • Co-wide results known; EE to mkt results known by EE • Manager & Employee discuss EE pay well
6. Published Ranges & Grades • Philosophy explained to employees • Full strategy shared with EEs • All ranges shared with Ees; budget & increase process / cycle known • Dept-wide results known • Manager & Employee discuss EE pay well
7. Everybody Knows Your Salary • Philosophy explained to employees • Full strategy shared with EEs • All ranges shared with Ees; budget & increase process / cycle known • EE to market results shared • EVERYBODY KNOWS EVERYBODY’S PAY
Moving to greater transparency www.payscale.com
Gain executive support • Explain what transparency is (and isn’t) • Link transparency with results that matter www.payscale.com
Train managers • Provide information about the business, rationale for increasing communication, and tools for success • Expect more to get more • No really, train them on communication www.payscale.com
Assess Workforce • What’s the make -up of your workforce? • Are they ready for more transparency? • Do they want it? www.payscale.com
Get clear about roles D ecider A ccountable R esponsible C onsulted I nformed www.payscale.com
Develop a plan Employees know Employees know Their pay × Their pay Grade & range × The starting rate for their Comp Philosophy & basis for increases job × Their range cap Average increase across the org / dept / level Third Party Study Requires: • Executive support and buy-in for comp plan • Increased manager savvy www.payscale.com
Functional Transparency
Immediate Actions Assess your workforce Educate yourself further about transparency Notice what you already do in your org Think about what “pushing the envelope” means to you Begin talking with your executives www.payscale.com
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-today Join our Group on LinkedIn: Compensation Today: HR Best Practices Mykkah Herner, MA, CCP Director of Professional Services Paige Hanley, CCP Sr. Compensation Professional www.payscale.com
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