PayScale: The Pay Transparency Challenge webinar

The Pay Transparency ChallengeDeciding Where to Fall on the Salary Transparency Spectrum

Mykkah Herner, MA, CCPDirector of Professional Services

Paige Hanley, CCPSr. Compensation Professional

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14,000 Positions 3000 Customers 11 Countries

250 Compensable Factors41 Million Salary Profiles

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Agenda• Pay Transparency Matters

• Defining Transparency

• The Transparency Spectrum

• Moving to Greater Transparency

• Immediate Actions

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Pay Transparency

Trust

Better Business Outcomes!

Engagement

Why Would Anybody be More Transparent about Pay?

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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

Intent to leave

Satisfaction

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Workforce Demographics…

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… are changing

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Everybody’s doing it…

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… whether they want to or not

•CEO to worker ratios

•990s

•Say on Pay

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Defining Transparency

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What are we being transparent about?

• Pay Philosophy

• Pay Strategy

• Pay Practices

• Market Studies

• Pay Rateswww.payscale.com

Pay Philosophy

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• Defining the competition

• Aiming to meet or exceed the competitions

• Deciding what matters

• Acknowledging various segments

Pay Strategy

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• We have a plan

• Jobs have grade assignments

• Range minimums / Range maximums

• Increase process / cycle

• Budget process / cycle

Pay Practices

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Market Studies

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Salary Rates

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The Transparency Spectrum

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Market Study and Processes

known

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

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• Explain what transparency is (and isn’t)

• Link transparency with results that matter

Gain executive support

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• Provide information about the business, rationale for increasing communication, and tools for success

• Expect more to get more

• No really, train them on communication

Train managers

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• What’s the make-up of your workforce?

• Are they ready for more transparency?

• Do they want it?

Assess Workforce

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D ecider

A ccountable

R esponsible

C onsulted

I nformed

Get clear about roles

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Develop a plan

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Employees know

× Their pay

× The starting rate for their job

× Their range cap

Employees know

Their pay

Grade & range

Comp Philosophy & basis for increases

Average increase across the org / dept / level

Third Party Study

Requires:• Executive support and buy-in for comp plan• Increased manager savvy

Functional Transparency

Immediate ActionsAssess 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

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Mykkah Herner, MA, CCPDirector of Professional Services

Paige Hanley, CCPSr. Compensation Professional

www.payscale.com