The Widening Skills Gap and its Link to Compensation
 

The Widening Skills Gap and its Link to Compensation

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The Widening Skills Gap and its Link to Compensation The Widening Skills Gap and its Link to Compensation Presentation Transcript

  • The  Widening  Skills  Gap    and  its    Connec5on  to  Compensa5on  Mykkah  Herner,  MA,  CCP  Senior  Compensa-on  Consultant,    PayScale,  Inc.  
  • www.payscale.com  14,000  Posi5ons  2500  Customers  36  Million  Salary  Profiles  250  Compensable  Factors  11  Countries  
  • www.payscale.com  AGENDA  o  What  is  the  Skills  Gap?  o  Defini5on  o  Who  it  Impacts  o  What  it  Costs  o  Bridging  the  Gap  o  Iden5fying  Skilled  Talent  o  Retaining  Skilled  Talent  o  Comp  Philosophies  o  Notes  on  Millennials  o  Cri5cal  Ac5on  Steps  
  • www.payscale.com  What  is    The  Skills  Gap?  
  • www.payscale.com  Skills  Gap  Defined    Simply  put…    “job  applicants  don’t  have  the  right  skills  for  the  job”      -­‐  Kathy  Robertson,  Sacramento  Business  Journal  
  • www.payscale.com  Prevalence  of  the  Skills  Gap  “67%  of  companies  are  having  a  hard  5me  filling  skilled  job  posi5ons  with  61%  of  those  saying  the  reason  is  a  lack  of  qualified  job  applicants.  Though  unemployment  is  s5ll  high,  the  reported  skills  gap  shows  us  that  there  are  many  job  categories  in  high  demand.”      -­‐  PayScale’s  2013  Compensa5on  Best  Prac5ces  Report  
  • www.payscale.com  Effect  of  Skills  Gap  
  • www.payscale.com  Who  it  Impacts  (Industry  &  Org  Size)  o  Industries:  o  Mining,  Oil  &  Gas  Explora5on  o  Construc5on  o  Informa5on,  Media  &  Telecommunica5ons  o  Manufacturing  o  Organiza5onal  Size  o  Small  o  Medium  o  Large  
  • www.payscale.com  Who  it  Impacts  (Jobs)  Depends  on  Org  Size    Other  Includes:    •  STEM  Jobs  •  Finance  •  Medical  Specialists  •  Maintenance  •  Machinists  •  Truck  Drivers    
  • www.payscale.com  Costs  of  the  Skills  Gap  o  Turnover  o  Over5me  o  Employee  pay  for  “skilled”  posi5ons  o  Produc5vity  o  Employee  morale  
  • www.payscale.com  Is  it  a  Myth?  The  opposi5on  says…  “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”  
  • www.payscale.com  Bridging  the  Gap  
  • www.payscale.com  Iden5fying  Skilled  Talent?  Finding…  o  Skilled  foreign  workers  o  Schools  with  the  ‘right’  programs  o  Other  companies  Airac5ng…  o  Right-­‐sized  total  compensa5on  packages  Cul5va5ng…  o  Succession  planning  o  Educa5ng  exis5ng  workforce  
  • www.payscale.com  Retaining  Skilled  Talent  Complexity  of  the  mix…  Company  Culture  Base  Pay  Structure  Variable  or  Incen-ve  Pay  Structure  Individualized  Rewards  &  Recogni-on  
  • www.payscale.com  Base  Pay  Strategy  o  Define  labor  market  o  Know  market  value  for  cri5cal  posi5ons  o  Manage  fixed  costs  o  Pay  for  performance  o  Target  hot  skills  jobs  higher  o  Pay  structure  right-­‐sized  for  organiza5on  
  • www.payscale.com  Variable  &  Incen5ve  Pay  Strategy  o  Keep  it  simple  o  Reward  the  right  behaviors  o  Align  to  organiza5onal  goals  o  Leverage  variable  costs  
  • www.payscale.com  Comp  Philosophies  Compensa)on  Philosophy  –  Be  Flexible  o  Uncertainty  of  “post”  Great  Recession  o  Impacts  of  the  Affordable  Care  Act  Company  Philosophy  –  Be  Fearless  o  Take  chances  on  exis5ng  staff  o  Consider  what  is  “overqualified”  and  “unskilled”  
  • www.payscale.com  Notes  on  Millennials  o  Transparency  and  communica5on  o  Reward  and  recogni5on  o  Engagement  –  to  the  extremes  
  • www.payscale.com  Cri5cal  Ac5on  Steps    •  Benchmark  cri-cal  jobs  –  know  their  worth  •  Consider  strategy  –  are  you  willing  to  target  higher  for  hot  skills?  •  Examine  total  compensa-on  package  •  Develop  marke-ng  around  company  culture  •  Iden-fy  missing  skills  in  the  organiza-on  •  Iden-fy  exis-ng  or  poten-al  internal  talent  •  Develop  a  talent  pipeline  •  Calculate  the  cost  of  con-nued  empty  roles  •  Ask  yourself  if  the  skills  gap  in  your  organiza-on  is  real  or  imagined  
  • PayScale  Delivers  Where  Other  Compensa5on  Providers  Fall  Short    Connect  with  PayScale:  Visit  our  blog:    www.payscale.com/compensa-on-­‐today  Join  our  Group  on  Linkedin:    Compensa-on  Today:    HR  Best  Prac-ces  Get  the  2013  Comp  Best  Prac5ces  Report:    hTp://resources.payscale.com/2013-­‐compensa-on-­‐prac-ces-­‐report.html  Mykkah  Herner,  MA,  CCP  Senior  Compensa-on  Consultant,    PayScale,  Inc.  www.payscale.com