Compensating Tomorrow’s Workforce, Today: Millennials & Beyond Mykkah Herner, MA, CCP Modern Compensation Evangelist Angela Ulman, CCP Compensation Professional A copy of the presentation and recertification credit will be sent out within a couple of business days
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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
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Generational Size Today
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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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35% of top performing companies are changing strategies for millennials
vs 28% of all companies
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Tailoring compensation to your workforce
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Mix of Pay
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What is the Right Compensation Mix?
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Preferences by generation
Boomers Gen X Millennials
Low Med High
Med Low High
High High Med
High Med Low
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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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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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Advancement and your comp structure
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Millennials seek advancement
Sample Career Ladder
Rental Coordinator
General Manager, Rental
Rental Coordinator Supervisor
Rental Manager
Grade 3 Grade 5 Grade 7 Grade 12
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You may not be big enough for career ladders. What paths exist?
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Connecting pay guidelines to generations
Now, with much greater mobility, flexibility, and advancement:
Level III
Level II
Level I
Then, with much higher tenures and pensions:
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Learning & Development
• Learning management system
• Mentors
• Lunch & Learns
• HR-led manager groups
• Structured succession planning
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Communication
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How does perception of pay impact employees?
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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
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of employees are ok with low pay if the rationale is explained82%
In other words, the WHY matters
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Transparency spectrum
Drive greater transparency
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Skills Gap
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What are they missing?• 44% cited writing proficiency• 39% called out public speaking• 60% identified critical thinking/ problem solving• 56% noted attention to detail• 46% mentioned communication more broadly
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• Managers
• Machinists
• STEM jobs
• Obsolete skills
• Purple Squirrels
Impacted Roles
Looking even farther into the future
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Need help? Start with these questions:
• What is the make-up of your workforce?
• Determine mix of pay that you currently use – are you using all tiers?
• What are the opportunities for advancement, learning, and development?
• How transparently are you sharing compensation information?
• What skills do you currently have? Lack? How about in 5 years?
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Visit our blog: www.payscale.com/compensation-todayJoin our Group on LinkedIn: Compensation Today: HR Best Practices