Webinar-Comp is a Team Sport
•Download as PPTX, PDF•
0 likes•811 views
When it comes to communicating compensation, managers play an important role in supporting and administering the company compensation plan. Attend this webinar and learn how to enable managers to be better prepared, and ultimately have greater participation in compensation across the organization. You'll learn: -How to better engage managers in compensation -Ways to gain manager and executive buy-in for your compensation strategy -Tips for identifying and leveraging internal champions and early adopters of your comp plan
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Webinar-Comp is a Team Sport
Similar to Webinar-Comp is a Team Sport (20)
More from PayScale, Inc.
More from PayScale, Inc. (20)
Recently uploaded
Recently uploaded (12)
Webinar-Comp is a Team Sport
- 1. Comp is a Team Sport Mykkah Herner, MA, CCP Modern Compensation Evangelist Kari Van Hoof, CCP Compensation Professional A copy of the presentation and recertification credit will be sent out within a couple of business days
- 3. www.payscale.com Kari Van Hoof, CCP Compensation Professional https://www.linkedin.com/in/kvanhoof Mykkah Herner, MA, CCP Modern Comp Evangelist https://www.linkedin.com/in/mykkahherner
- 4. www.payscale.com Three-quarters of messages to employees about pay are delivered by managers
- 5. www.payscale.com Only 17% of organizations are very confident in their managers’ abilities to have difficult pay conversations
- 7. www.payscale.com If comp is a team sport, what are the positions? How can I define manager involvement? When and how do I get people to play? Getting started
- 9. www.payscale.com http://www.nbcolympics.com/news/preview-day-8-rowing-rio Crew Positions as a Metaphor Coxswain Stroke Bow Engine Room
- 10. www.payscale.com Crew Positions as a Metaphor Coxswain Stroke Bow Engine Room HR Executives Employees Managers
- 11. www.payscale.com The Coxswain: HR • Align the strategy • Coordinate processes • Update and inform organization • Provide resources
- 12. www.payscale.com The Stroke: Executives Set the pace • Philosophy and strategy • Transparency • Approvals
- 13. www.payscale.com The Bow: Managers • Know employees • Communicate • Provide input to job descriptions, increases, and promotions
- 14. www.payscale.com The Engine Room: Employees • Be honest • Listen actively • Ask clarifying questions
- 16. www.payscale.com Understanding Compensation https://pauljackson1973.wordpress.com/2013/11/19/p2-development- vector-website/ Elements of a comp plan • Philosophy • Strategy • Ranges • Policies • Processes
- 17. www.payscale.com Providing Input • Job Description • How the jobs align • Hiring rate • Promotions • Increases • Performance
- 18. www.payscale.com Communicating https://mollyfield.me/2012/09/23/communication-filters/ • Help managers understand the opportunity • Clarify job expectations • Connect the dots • Reiterate key comp messages • Share market or range data • Communicate ongoing
- 19. www.payscale.com Getting people to play
- 20. www.payscale.com Find the right motivation http://www.essexrowing.org/pr/library/2008/pr081708.html
- 21. www.payscale.com Help them learn how to play • Negotiation skills • Communication skills • Compensation knowledge • Performance management proficiency • Connect the dots http://www.saratogarowing.com/learn-to-row-saratoga/
- 22. www.payscale.com Identify things that may prevent them from playing • Morale • Trust • Flexibility http://hypnosishealthinfo.com/overcome-fear- water-hypnosis-mp3-download/
- 24. www.payscale.com Celebrate your wins! http://dev.riptapparel.com/best-photos-of-to2015-week-1/71275/
- 25. www.payscale.com Getting Started • How and when do conversations about pay happen at your organization? • Is your compensation plan clearly articulated? • Are your executives on board with your compensation plan? • How much support will your managers need to play a more active role in compensation? • Do you have the resources in place to support comp as a team sport in your organization?
- 26. PayScale Delivers Where Other Compensation Providers Fall Short PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 54 million salary profiles. More than 3500 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 Kari Van Hoof, CCP Compensation Professional Mykkah Herner, MA, CCP Modern Compensation Evangelist www.payscale.com
Editor's Notes
- Hedge
- Hedge Creator of the largest database of individual compensation profiles in the world, PayScale, Inc. provides an immediate and precise snapshot of current market salaries to employees and employers through its online tools and software. PayScale’s products are powered by innovative search and query algorithms that dynamically acquire, analyze and aggregate compensation information for millions of individuals in real time. Publisher of the quarterly PayScale IndexTM, PayScale's subscription software products for employers include PayScale MarketRateTM and PayScale InsightTM. Among PayScale's 2,500 corporate customers are organizations small and large across industries including Mozilla, Tully’s Coffee, Clemson University and the United States Postal Service.
- Both, Mykkah first Add Kari’s LinkedIn Why am I qualified to talk with you now
- Kari (CEB is Corporate Executive Board) 17% of organizations are very confident in their managers abilities to talk about pay (2016 PayScale CBPR) 75% of messages to employees about pay are delivered by managers (CEB)
- Kari 17% of organizations are very confident in their managers abilities to talk about pay (2016 PayScale CBPR) So it’s important that we start engaging our managers to have better more productive conversations about pay
- Kari I sort of like the desert notion – like if you don’t start playing a team sport, you’ll run out of steam/water. Get it? WHY? Allows HR to focus on the strategic aspect of pay versus getting stuck on the administrative side … seat at the table and elevation of HR role in the org Creates greater rapport between HR and managers, increases mutual respect, and brings HR into the “whole business” mindset --- Greater alignment Enables managers to have more successful comp conversations, which aids in retention, motivation, engagement, and ultimately achieving results For me, success will be when managers no longer say “I don’t know why, HR wouldn’t let me” or “go ask HR”
- Mykkah When it comes to communicating compensation, managers play an important role in supporting and administering the company compensation plan. Attend this webinar and lean how to enable managers to be better prepared, and ultimately have greater participation in compensation across the organization. You'll learn: How to better engage managers in compensation Ways to gain manager and executive buy-in for your compensation strategy Tips for identifying and leveraging internal champions and early adopters of your comp plan
- We’ll start at the top here. If comp is intended to be a team sport, who should play and how?
- Mykkah: Describe briefly what the function is of each position in the boat: Coxswain: Steers the boat Provides motivation and encouragement for the crew Informs the crew of where they are in relation to other crews and the finish line Makes necessary race tactic calls to course correct as necessary The Stroke: Sets the rate and rhythm for everyone else to follow Leads the boat by bringing out the best in everyone Is calm yet competitive The Bow: In coxless boats, gives out calls to the crew Provides stability and direction Adaptable and quick in their movements The Engine Room: Strongest and heaviest rowers – aka the muscle Pull as hard as possible
- Mykkah Quickly connect the dots between each – we’ll go into detail for each on the next slides
- Kari HR has a few critical jobs in steering the compensation boat: aligning the strategy, coordinating processes, providing resources, and informing the organization of progress. Aligning the strategy HR guides comp planning, budgeting, and administration every step of the way, from high-level business planning sessions to developing a talent strategy that anticipates workforce needs in support of the organization’s immediate and long-term objectives. HR steers the compensation plan from strategy development through a market study, ensuring an externally competitive and internally equitable pay strategy and structure. Ultimately the goal of the compensation plan and the talent strategy overall, is to help the organization accomplish its objectives by helping individuals thrive. Coordinating processes Together with organizational leaders, HR develops policies and processes for consistent, fair, and compliant administration of the compensation plan. These typically include documenting the basis for allocating base pay increases; handling employee outliers, promotions, demotions, and transfers; and establishing a hiring range for managers to use. Updating and informing One of HR’s most critical roles is to continually keep executives and managers in the know on the compensation plan. For executives, that means providing them with regular updates about market movement, especially for hot jobs. It also means keeping them apprised of industry trends that matter, like using a targeted compensation strategy vs a one-size-fits-all approach For managers, that means giving them the tools for success, insight into what employees care about, and talking points for their critical conversations. Providing resources HR has a great training opportunity to equip managers to talk pay with their employees. HR can help managers understand the organization’s compensation philosophy and can speak to it, as well as other details of the comp plan and policies in accordance with the chosen transparency level. Why is this so important? Managers’ credibility and authority are bolstered when they can confidently have pay conversations with their employees instead of telling them to “go ask HR.” In addition to providing manager training, HR supports comp review conversations by providing managers with personalized Total Rewards Statements to show each of their employees the value of the non-cash elements of their total comp package.
- Mykkah Executives’ Compensation Role Executives set the pace for the compensation plan by establishing a clear philosophy and strategy, as well as deciding on the right level of transparency for the organizational culture. The leadership team establishes the pay philosophy, which identifies what the organization aims to accomplish with its compensation dollars. They work together to clarify the compensation or pay strategy, which is determined with the organization’s business objectives in mind and serves as the foundation for the comp plan. Next they should decide how transparent the organization plans to be about their pay practices, keeping in mind that most employees want more transparency and, according to the 2016 PayScale Compensation Best Practices Report, nearly half of top performing companies are providing it. Executives typically approve the compensation budget, and they ultimately hold operating authority for the plan (or overall authority if there is no Board of Directors). The compensation budget provides the opportunity for executives to put their money where their mouth is, and vice versa by communicating their compensation intentions. A common thread that runs through all organizational roles is communication and it starts at the top. Executives are responsible for communicating compensation broadly across the organization. When executives deliver messages about compensation, it demonstrates to employees that executives are in the boat with them. Not only does it show that organizational leadership agrees with the comp plan, it lends weight to the plan’s importance. I also like a reminder that execs are both people and managers.
- Kari Know employees – what motivates? What are their career goals? What matters most to them and what are they capable of? Manager are the key decision-makers for their teams and the work being accomplished by their teams. Ultimately, they’re the ones who share compensation specifics with their direct reports. At many organizations, managers are directly involved in determining pay for those they supervise. They receive a merit pool and are responsible for allocating raises and sharing them during individual comp review meetings. Managers work with HR to ensure job descriptions are accurate. If front-line work changes, managers should proactively partner with HR to update the job description or, in cases where the work requires an entirely different job, develop a new one. In addition to maintaining job documentation, some managers partner with HR to develop career paths.
- Mykkah Employees aren’t without a role in compensation and communication. Employees have the responsibility of being honest with themselves about what motivates them, and then communicating that to their manager. Organizations are discovering the value of flexibility in retaining and motivating employees, so it’s up to employees to start asking for the things that will really help them accomplish results that matter. Employees also have to actively listen to the why – to the rationale that employers are providing for their compensation plans. If the employer why and the employee why aligns, it’s a pretty good fit. That’s when employees get on board. Their role is mostly about asking clarifying questions, understanding the compensation plan and the goals of the organization so they can decide to get in the boat and paddle as hard as they can. Employees and employers are in an ongoing relationship where they exchange value. Employers provide total rewards and employees exert effort. This is the “deal.” Both groups are always doing mental math to decide if the deal is still fair and still worth it.
- Mykkah In orgs, one of the big anxieties often has to do with giving mgrs more responsibility or involvement. The notion of “we don’t trust them” or “they’re inconsistent.” At the same time that you’re working on your execs to make great decisions about comp at the high level, think of your managers as key contributors and providers of information. Employees also play a role – active involvement vs waiting for someone to approach them. Due to generational size & the recession – not much space for GenX in the leadership sphere and there’s not enough of them, so millennials are moving into leadership roles as new managers. Just more reason to help train & educate. For this section, we’ll focus on mgr involvement as it remains one of the big sticking points.
- Kari Before you can get your Execs and Managers involved, you have to provide them with some information about compensation – help them understand how it works, what choices have been made, and what you expect from them in their role. Elements of a comp plan: philosophy, strategy, grades and/or ranges, policies, processes. (describe what they roughly mean) How comp plan drives talent strategy and business results How comp plan supports org culture How’s the business doing and how does that impact comp plan? – link to communication What do you expect from them in their role?
- Mykkah If you can, involve your managers in making comp decisions. - input to JD - input to pay range or how the jobs relate to one another - input to hiring rate - input to promotions - input to increasing EE pay DARCI various different roles. Be clear about what you mean. Stick with it. Decision-maker Accountable Responsible Consulted Informed – when orgs go here they lose the ability to make mgrs. confident in pay decisions.
- Kari The other way to involve managers is to have them communicate comp to EE. Odds are they’re doing some kind of communication anyway, so why not seize the opportunity to have more strategic conversations. Most conversations about pay are about something else, so it’s an opportunity for Mgrs to find out what makes Ees tick (motivation, engagement, what career goals, etc) & to clarify job expectations. When sharing information with employees, coach managers to connect the dots between employee goals and interests and organizational goals. Depending on the level of transparency, managers may share grades and ranges for jobs along employee career paths to demonstrate for employees how their pay could increase right along with their job title and responsibilities. Managers should reiterate key organizational messages about compensation, like how the organization is doing, a commitment to fair pay, changes to the compensation plan, and other relevant data points. If the organization is more transparent, this would be a good time for managers to explain how the market data point was calculated for their direct reports. Communication between managers and employees should be ongoing, with regular check-ins so employees always have an idea of whether they’re on track to achieve their goals.
- Mykkah One of the things we often see in orgs is that our HR partners spend a lot of time with the plan while they’re setting it up. They become invested in the work they’ve done, and rightly proud of it. Some of them then take their plan and, I imagine, hold it up for their organization and say “here it is!” which usually falls flat. Having a good plan isn’t enough. Involving managers is helpful, but really successful HR folks know how to socialize the plan at some key points along the way so that they are continually gaining support for the plan. Then by the time it’s ready, people are ready for it. So in this next section we’re going to talk more about how to get people excited to play the game.
- Kari Explain why having a comp plan in place is a good idea Make participation relevant for all parties: Employees – development opportunities; fair pay Managers: Meeting team goals. Managers typically want to manage – they want to be involved, but don’t want to be pulled away from their day jobs for too long. If you involve them in making some early decisions about the plan – or ongoing decisions – you’ll be able to get managers engaged in the plan. Are your managers involved in defining your jobs? Writing your job descriptions? That’s one way to get their buy-in or sign off on what’s involved in the job. Give them some actual tangible tools for managing employee pay and they may eventually stop saying “I don’t know why, HR wouldn’t let me.” Executives: Generally executives want quick information about how things are going, and suggested course-corrections where needed. They mostly want to not worry about the basics, like compliance. What can you give them? Provide them with regular reporting about the comp plan overall, highlighting danger areas like flight risks or market debt. Call attention to compliance risks, but don’t put them in writing until you’re ready to act! ROI of the plan. Employees want to know: the plan is fair. Most employees want to feel that they are being valued appropriately for the work they’re doing. So help them out by sharing information with them about the market value of their job and how their pay compares. How could they earn more or move up? Managers want to know: having a plan will help me get/keep the best people. Most managers really hate recruiting. Most managers want to have highly capable employees that love their jobs and want to accomplish their goals. This isn’t too far-fetched if you can ensure that pay is fair (what the employees want) and that managers are listening to what motivates their top performers. Executives want to know: the plan will help them achieve business results. If your company intends to 2x revenue in the next 5 years, you’re going to need to make hard choices about where to prioritize pay (and therefore where to reserve it) so that you get the right talent to bring you over the finish line. It’s not obvious to executives, or anyone, that comp is one way to get there – you may have to connect the dots. Draw the baselines and get them running.
- Mykkah Increase confidence & trust Employees don’t always know how to communicate what they want. Ask them questions. Teach them how to negotiate. Providing employees with information and resources only gets them better at sharing what really matters to them. Why waste $10K on a base pay increase, when what they really wanted was to work on the upcoming cross-org project? Managers often become managers because they’re excellent individual contributors. They haven’t always been provided with the knowledge, skills, and abilities it takes to actually manage adult humans. We’re a tricky bunch! Provide your managers with regular skills-building opportunities, not the least of which should be ongoing training about how to communicate well in and with a variety of communication styles. They should know not just how to share information, but how to receive information from employees. They play such a crucial role as the true eyes and ears of the organization. Also, just because they’ve gotten far enough along to manage people doesn’t mean they understand the basics of compensation. So train them on that too! The third biggest area that matters is to make sure they know how to set clear performance expectations, share those expectations, evaluate those expectations, and communicate results relative to those expectations. Protip: provide managers with regular opportunities to calibrate performance expectations with their peers. This is the #1 best way to gain consistency for performance evaluation in your organization. Executives are often trickier. Most believe they know what they need to know about comp and communication. Some admit they need help and get coaches to support them. Few can make the links between compensation, communication, and business results. Start by drawing those connections for them, then work with them to see the links themselves. Teach employees to communicate what matters most to them. If they seek new skills, why waste money on a large increase? Start by drawing the connections between compensation, communication, and business results.
- Kari For employees, start with engagement and culture. Most engagement models have some element of communication driving them, whether it’s knowing what success looks like or feeling appreciated. For managers, help them understand the strategy and rationale for your comp plan. If they don’t trust the data, it’s hard for them to buy-in. For executives, it’s usually about the 12 names in a drawer. Reassure them that flexibility is built into the plan for those they can’t live without.
- Mykkah - Information about comp plan - Timeline - Tool to navigate pay changes - Training in effective conversations - Talking points
- Kari One way to encourage people to play is to celebrate the things that work. As you begin pulling your team together, leveling up their information, remember to celebrate the little wins along the way. Teams don’t win the gold at the Olympics without winning a lot of races along the way. Did you know it’s totally a thing to throw the Coxswain into the water?
- Kari Here are some questions to ask yourself so you can get started Based on the answers to these, you can start prioritizing your time so that you can start making comp more of a team sport in your org.
- Quiz/Poll –