Communicating Compensation to Executives and Managers

bamboohr.com payscale.com

Communicating Compensation to Executives and Managers

4 ways to communicate compensation

that drive strategic outcomes.Communicating CompensationTo Executives and Managers



Todd GriersonH E A D I N D U S T R Y R E L A T I O N S

A T B A M B O O H R

Mykkah HernerM O D E R N C O M P E N S A T I O N

E V A N G E L I S T A T P A Y S C A L E



1Three Perspectives on

Compensation Communication



Pudgy desk on fire



HR wants to be involved in handling bigger issues that directly impact the

company and its bottom line.1

The August 2014 study collected responses via an online survey from 1,307 U.S.-based HR professionals (the majority of whom [75 percent] have worked in the HR industry for 10+ years) who are currently employed by small (<50 employees) to large (500+ employees) businesses. This research was generated by BambooHR and HR Daily Advisor.



Edit typo



Pudgy conveyor belt from pitch deck



How does perception of pay impact employees?



Most Do Not Know if They Are Paid Fairly

Full Article: https://hbr.org/2015/10/most-people-have-no-idea-whether-theyre-paid-fairly



of employees are ok with low pay if the rationale is explained

—PayScale Employee Survey 2015

82%



v

HOW

WHY

ValuesMissionBeliefs

Culture | Corp. Brand

WHAT

Start with Why

OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE)



“People are motivated by consequences they anticipate.”

—Crucial Conversations



BambooHR Core Values



1

Understanding Pay Transparency



Defining Transparency



Transparency Spectrum



Pay Transparency gets everyone in the same

boat, paddling in the same direction.



Why Would Anybody be More Transparent about Pay?

Pay Transparency

Trust

Better Business Outcomes!

Engagement



www.payscale.com

Talking about payisn’t always fun



1

Communicating with Executives



www.payscale.com

• Understand the executive audience

• Align compensation with business objectives

• Incorporate leading edge practices

• Keep executives up to date

Exec communication tips



What do your Executives Care About?



Benefits of Comp Plans

23



Prepare Talking Points

• Compensation philosophy and purpose

• Compensation plan changes at the highest level

• Market study and results• Next steps—talk with managers



Report High Level Info• Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc.)• Report these on a regular basis



1

Communicating with Managers



Compensation is about an exchange of value,

not money.



Value Exchange

Experience in industry

Experience in market vertical

Experience in adjacent markets

Experience in field of discipline

Experience in adjacent disciplines

Experience with competitors

Product knowledge

Competitor knowledge

Time and experience in company

Education

Discipline training and certification

Supply and demand

Employer Value DriversEmployee Value Drivers

Base payPerformance Pay

Paid time offBenefits

TravelCulture and environment

Work flexibilityWork/Life balance

Meaningful workWho you work with

Challenging workOpportunity to impact

Job security

Shared purpose / missionCareer advancement opportunities

Autonomy

Senior leadership



of companies are confident in managers’ ability to have tough pay conversations 2016 PayScale Compensation Best Practices Report17%



Agents of the Organization



Equip Managers• Set expectations• Educate them• Give them the big picture• Give them tools



Negotiation Skills• Sell the organization & 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



33

Consider Workplace “Currency”

Know what motivates your employees Additional/Alternative Perks FTE preference Staggered increase or offer PTO Work assignments Development opportunities

Identify Creative Solutions



The Compensation Review Meeting

1. Prepare for the meeting

2. Deliver feedback and listen

3. Follow up



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 lowo Pay is higho No increase due to performanceo “I found this on the internet”



Follow BambooHR and PayScale on social media:

bamboohr.com/blog | payscale.com/compensation-today

Thank you!



Questions?BambooHR

Receive a free job posting on our ATS and full HRIS for one week.We will contact everyone within the next few days to set this up.

Download our free eBook: Communicating Compensation: Your guide to tackling tough conversations about pay

PayScale



Final Challenge

1% bigger

37xgrowth