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Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
Compensation and Planning for the Future
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Compensation and Planning for the Future

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TLNT Webinar from 8/18/11, presented by Ann Bares, Jim Brennan and Laura Schroeder.

TLNT Webinar from 8/18/11, presented by Ann Bares, Jim Brennan and Laura Schroeder.

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  • 1. Compensation andPlanning for the Future Presented by: Ann Bares E. James (Jim) Brennan Laura Schroeder August 18, 2011
  • 2. Today’s PresentersAnn Bares E. James (Jim) Brennan Laura SchroederManaging Partner, Senior Associate, Global Talent Specialist,Altura Consulting Group ERI Economic Research WorkdayCompensation Café Compensation Café Compensation CaféFounder & Editor Contributor Contributor
  • 3. The Story Research Tells UsAnn BaresManaging Partner, Altura ConsultingGroup
  • 4. 2012 Salary Increase BudgetsEmployee Group WorldatWork Hay Group ERIHourly Nonexempt 2.9% 3.0% 2.6%Salaried Nonexempt 2.9% 3.0% 2.8%Salaried Exempt 2.9% 3.0% 2.9%Officers/Executives 2.9% 3.0% 3.0% Steady as She Goes…Sources:WorldatWork 2011/2012 Salary Increase Budget Survey, Hay Group’s U.S. Database (7/11 Press Release), ERI 2012 SalaryIncrease Survey
  • 5. 2012 Salary Structure AdjustmentsEmployee Group WorldatWork Hay Group ERIHourly Nonexempt 1.9% -- 1.4%Salaried Nonexempt 1.9% -- 1.5%Salaried Exempt 1.9% -- 1.6%Officers/Executives 2.9% -- 1.7% …Playing a Little Catch-Up?Sources:WorldatWork 2011/2012 Salary Increase Budget Survey, Hay Group’s U.S. Database (7/11 Press Release), ERI 2012 SalaryIncrease Survey
  • 6. Another More Chaotic Reality
  • 7. The General Salary Program Picture 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2006 2007 2008 2009 2010 2011 2012 Salary increases Structure adjustmentsSources:WorldatWork 2011/2012 Salary Increase Budget Survey
  • 8. Put in Larger Economic Context 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2006 2007 2008 2009 2010 2011 2012 -2.0% Salary increases Structure adjustments CPI UnemploymentSources:WorldatWork 2011/2012 Salary Increase Budget Survey
  • 9. With an Interesting Twist
  • 10. The State of Variable Pay 2006 2007 2008 2009 2010 2011% of organizations 79% 80% 81% 80% 80% 79%using variable pay The percent of organizations using variable pay hovering around 80%Sources:WorldatWork 2011/2012 Salary Increase Budget Survey
  • 11. Most Popular Programs/Practices Top ThreeProgram 2009 2010 2011Employee referral bonus 66% 55% 62%Sign-on/hiring bonus 64% 50% 62%Market adjustments to base salary 37% 35% 60% Next TwoProgram 2009 2010 2011Spot bonus 39% 36% 48%Non-cash recognition -- 38% 41%
  • 12. Making Compensation Planning DynamicE. James (Jim) BrennanSenior AssociateERI Economic Research
  • 13. Budgeting Principles•  Fixed budget = guaranteed expense•  Human enterprises, dynamic treatments
  • 14. PPPPPP1.  Anticipate your market situation2.  Target Midpoints or Job Values •  study your market ratios •  analyze your compa-ratios •  define your closure needs3.  Plan action steps to •  minimize residual risk exposures •  remedy shortfalls over time •  protect key talent
  • 15. Timing of Increases•  Simultaneous (Focal)•  Variable (Anniversary)
  • 16. Expect Variations•  Prepare A B C budgets•  Randomness is lumpy•  Human reality is rarely neat, smooth or symmetrical•  Ready, aim, fire, score, adjust, repeat
  • 17. Compensation 2.0Five Trends That Will Change How We Think About CompensationLaura SchroederGlobal Talent SpecialistWorkday
  • 18. 5 Trends in Compensation1.  Evolving Role of Salary Surveys2.  A New Kind of Workforce3.  Flexible Compensation4.  New Business Priorities5.  Growing Demand for Transparency
  • 19. Evolving Role of Salary Surveys•  Hard to get reliable non-US information•  Jobs are evolving – new jobs, ‘hybrid’ jobs•  Growing emphasis on total rewards
  • 20. A New Kind of Workforce•  Global, contingent, multi-generational, flexible, virtual•  Different locations, priorities, work styles•  Growing demand for cost and performance analysis
  • 21. Flexible Compensation•  Compensation should support your strategic workforce goals•  Your compensation processes should be as dynamic as your workforce•  Once a year performance and compensation review may not cut it
  • 22. New Business Priorities•  Business priorities that shaped current compensation have changed•  It’s a good time to analyze whether business priorities match what is actually rewarded•  Everyone should have an incentive to perform as an individual as well a stake in overall company performance
  • 23. Growing Demand for Transparency•  Clear communication – and a bit of positive spin – can make the difference between resentment and gratitude•  Be honest about your total rewards offering•  Total rewards statement to showcase your real investment in people
  • 24. Questions and (Hopefully) Answers

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