Webinar-How to Communicate Compensation to Executives and Managers

bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
ToExecutives and Managers

Rusty Lindquist
V P T H O U G H T L E A D E R S H I P
A T B A M B O O H R
Mykkah Herner
M 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

4
Compensation
perspectives on
Communication

Defining Transparency

The PayScale Pay Transparency Spectrum

Why Would Anybody
be More Transparent
about Pay?
Pay Transparency
Trust
Better Business
Outcomes!
Engagement

www.payscale.com
Talking about pay
isn’t always fun

2
Compensation’s
Organizational Impact

Culture
Performance
Engagement Retention

Performance
Loyalty
Satisfaction Engagement
Retention
CULTURE
Greater Business Output
CULTURE

CULTURE
Impact?
CULTURE

Everything you do
becomes part of that story…
The story of what you value

Compensation:
The story of
how much you are valued

Compensation
The Keystone
of Culture

Making the Compensation
Conversation a Culture Builder
Don’t be offended
Be open
Take it seriously Be objective
Be proactive
Be Positive

of employees are ok with
low pay if the rationale is
explained
82%
of companies are confident
in managers’ ability to have
tough pay conversations
80% of employees paid above
market believe they’re paid
at or below
17%
—PayScale Employee Survey 2015
—PayScale Employee Survey 2015
—PayScale Comp Best Practices Report 2016

How does perception of pay
impact employees?

3
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
22

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

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 pay
Performance Pay
Paid time off
Benefits
Travel
Culture and environment
Work flexibility
Work/Life balance
Meaningful work
Who you work with
Challenging work
Opportunity to impact
Job security
Shared purpose / mission
Career advancement opportunities
Autonomy
Senior leadership

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

Consider Workplace “Currency”
 Know what motivates your employees
 Additional/Alternative Perks
 FTE preference
 Staggered increase or offer
 PTO
 Work assignments
 Development opportunities
31
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 low
o Pay is high
o No increase due to performance
o “I found this on the internet”

Thankyou!
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

Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Questions?
Rusty Lindquist
V P S T R A T E G I C H R I N S I G H T S
B A M B O O H R
@ r u s t y l i n d q u i s t
r u s t y @ b a m b o o h r . c o m
w w w . l i n k e d i n . c o m / i n / r u s t y l i n d q u i s t
Mykkah Herner
M O D E R N C O M P E V A N G E L I S T
P A Y S C A L E
@ m y k k a h _ h e r n e r
M y k k a h H @ p a y s c a l e . c o m
w w w . l i n k e d i n . c o m / i n / m y k k a h h e r n e r

Webinar-How to Communicate Compensation to Executives and Managers

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Webinar-How to Communicate Compensation to Executives and Managers