Compensation Strategies for a Multigenerational Workforce

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Join Mykkah Herner and Ian Englund of PayScale’s professional services group as they explore the impact of a multigenerational workforce on compensation. They’ll discuss strategies for an appropriate compensation mix given various impacts.

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Compensation Strategies for a Multigenerational Workforce

  1. 1. Compensation decisions for a multi-generational workforce Presenters: Mykkah Herner, M.A., CCP Manager of Professional Services, PayScale Ian Englund, CCP Compensation Consultant, PayScale
  2. 2. 14,000 Positions 2500 Customers 11 Countries 250 Compensable Factors 40 Million Salary Profiles
  3. 3. Identifying Generational Differences Effect of the Skills Gap Impact of the Government • Minimum Wage • Affordable Care Act Generational Priorities • Compensation Mix • Communicating about compensation Immediate Action!
  4. 4. Identifying Generational Differences
  5. 5. Defining the Generations Generation Communication About Comp Avg Tenure Career Mindset Silent/ Traditionalist Generation 1927-1945 Private Lifers Retirement Baby Boomers 1946 – 1964 Mostly Private 15+ years Retirement Work/life Balance Gen X / Busters 1965-1983 Somewhat Private 5+ years Management Work/life balance Gen Y / Millennials 1984-2002 Public 1.5-2 years Go-Getters, Advancement, Flexibility
  6. 6. 2014 Top Skills by Generation Baby Boomer Gen X Gen Y
  7. 7. Pay By Generation Overall Pay Gender Wage Gap
  8. 8. Effect of the Skills Gap
  9. 9. Who is Impacted (Jobs) Depends on Org Size Other Includes: • STEM Jobs • Finance • Medical Specialists • Maintenance • Machinists • Truck Drivers
  10. 10. Is it a Myth? “The ‘skills gap’ myth plays a vital role in taking the spotlight off corporate decisions and pro-corporate government policies” - Roger Bybee, “The ‘skills gap’ myth”
  11. 11. Generational Impact • Machinists – lifers • Managers – not retiring • STEM – leap of faith • Obsolete skills (Medical Records vs EMR) • Purple Squirrels
  12. 12. Impact of the Government
  13. 13. Affordable Care Act • 84% expect no staffing changes from the ACA • 5% cutting back hours • 8% will hire fewer full time workers Fair Minimum Wage Act • 40% are in favor of $10.10 • 30% against • 30% unsure
  14. 14. Generational Impact of Both Acts Who is impacted? • Hourly workers • Part Time workers What matters? • Communication • Managing expectations
  15. 15. This image cannot currently be displayed. Generational Priorities
  16. 16. WHAT IS THE RIGHT COMPENSATION MIX FOR MY ORGANIZATION? www.payscale.com
  17. 17. Communicating About Compensation Employees know… o Only their own salary. o Their range and where it caps out. o All grade assignments for jobs up to a certain level. o All grade assignments for all jobs. o The ranges associated with grade assignments to a certain level. o The ranges for all jobs. o Everyone’s pay. Managers know… Only their own salary. The salary of their direct reports. The salary of all those on their team. The grade assignments & ranges of their direct reports. The grade assignments & ranges of all those on their team. The grade assignments of all positions up to their level or up to a certain level. The ranges of all positions up to their level or a certain level. All grade assignments for all jobs. The ranges for all jobs. Everyone’s pay.
  18. 18. Grade Assignments Grade 8 Grade 9 Grade 11 Grade 14 Grade 15 (Designer Example) Associate Designer Senior Associate Designer Designer Senior Designer Design Director
  19. 19. Immediate Action(s) 1. Identify which generations are prominent in your workforce 2. Assess your current compensation mix – does it align with your workforce 3. Check your compliance to ACA and Minimum Wage 4. Review your open positions & identify skills needed for those jobs – trainable? 5. Begin a conversation with your execs about transparency
  20. 20. PayScale Delivers Where Other Compensation Providers Fall Short PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 40 million salary profiles. More than 2500 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 Mykkah Herner, M.A., CCP Manager of Professional Services, PayScale Ian Englund, CCP Compensation Consultant, PayScale

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