The Pay Transparency Challenge Deciding Where to Fall on the Salary - - PowerPoint PPT Presentation

The Pay Transparency Challenge

Deciding Where to Fall on the Salary Transparency Spectrum

Mykkah Herner, MA, CCP

Director of Professional Services

Paige Hanley, CCP

• Sr. Compensation Professional

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14,000 Positions 3000 Customers 11 Countries

250 Compensable Factors

41 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%

% Responses with Intent to Leave % Responses with High Satsifaction

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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 Rates

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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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www.payscale.com 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 Actions

Assess 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, CCP Director of Professional Services Paige Hanley, CCP

• Sr. Compensation Professional

www.payscale.com