bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Rusty Lindquist
VP STRATEGIC HR INSIGHTS
BambooHR
Rita Pate...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
5 steps to set up your
compensation plan
Gain executive sup...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 1: Gain
Executive Support
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Payroll is, by far, a company’s
biggest expense; the cost o...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Pay is the number 3 reason people quit jobs
[BambooHR study...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Top Compensation Mistakes
• Not updating compensation regul...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation plans help
the bottom line.
1. They make good ...
– Ram Charan
Best-selling Author,
World-renowned Business Advisor
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
“If you pick the right people and give them
the opportunity...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 2: Define Your
Compensation Strategy
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Questions to ask:
• What is your market?
• What are your go...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
What is the right compensation
mix for your company?
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
—Harvard Business Review
“Keep the plan simple. It should b...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 3: Develop a Market-
Based Pay Structure
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Decide on the correct job evaluation method.
Market Pricing...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Choose the right data source
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 4: Build Pay Ranges
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Identify Market Differentials
Schedules preserve both compe...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Determine Your Pay Grades
The number of pay grades you use ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Some considerations include
• How wide should my ranges be?...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Evaluating employee placement in range.
Developing guidelin...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Use market data
Verify internal alignment
Assign Jobs to Gr...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Basic Function
& Key
Differentiators
• Administrative
Accou...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 5: Implement Total
Rewards Plan
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation Plan Element
• Philosophy
• Strategy
• Ranges
...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Budgeting for Increases
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Deal with Outliers
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Strategies: Equip Managers
• Educate them
• Give them the b...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
What can we do now?
1. Talk with executives about the need ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
COMP & CULTURE
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Everything you do
becomes part of that story…
The story of ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation:
The story of
how much you are valued
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation:
The keystone
of culture
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Follow BambooHR and PayScale on social media:
bamboohr.com/...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Questions?
BambooHR
Receive a free job posting on our ATS a...
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5 Steps To A Smart Compensation Plan

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Your employees want a bigger piece of the pie. You want to attract and retain top talent while motivating employees to perform at their best. In this webinar, PayScale and BambooHR experts guide you to create a compensation plan that's a win/win for both you and your employees.

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5 Steps To A Smart Compensation Plan

  1. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan
  2. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Rusty Lindquist VP STRATEGIC HR INSIGHTS BambooHR Rita Paterson, CCP MANAGER OF CUSTOMER EDUCATION Payscale
  3. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan 5 steps to set up your compensation plan Gain executive support. Define your compensation strategy. Develop a market-based pay structure. Build pay ranges. Implement a total rewards plan.
  4. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Step 1: Gain Executive Support
  5. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Payroll is, by far, a company’s biggest expense; the cost of getting it wrong is tremendous.
  6. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Pay is the number 3 reason people quit jobs [BambooHR study]. If employees aren’t being paid what they’re worth, they will find it somewhere else. Executives must care about compensation if they care about retention.
  7. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Top Compensation Mistakes • Not updating compensation regularly • Not empowering managers to fix problems • Not being transparent • Giving across-the-board raises • Not having a structured plan
  8. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Compensation plans help the bottom line. 1. They make good business sense. 2. They help attract and retain talent. 3. They support your company’s mission, strategy and culture.
  9. – Ram Charan Best-selling Author, World-renowned Business Advisor
  10. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan “If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it, you almost don’t have to manage them.” —Jack Welch
  11. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Step 2: Define Your Compensation Strategy
  12. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Questions to ask: • What is your market? • What are your goals? • How competitive do you need to be? • What should you reward? • Is your current strategy working?
  13. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan What is the right compensation mix for your company?
  14. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan —Harvard Business Review “Keep the plan simple. It should be extraordinarily clear which outcomes you are rewarding.”
  15. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Step 3: Develop a Market- Based Pay Structure
  16. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Decide on the correct job evaluation method. Market Pricing v. Point Factoring
  17. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Choose the right data source
  18. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Step 4: Build Pay Ranges
  19. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Identify Market Differentials Schedules preserve both competitive pay to local markets and internal equity. Baltimore +5% Dallas Main Minneapolis +5%
  20. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Determine Your Pay Grades The number of pay grades you use will influence your midpoint differential and should sufficiently distinguish difficulty levels of different jobs.
  21. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Some considerations include • How wide should my ranges be? • How much overlap between pay ranges is good? Build Pay Ranges
  22. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Evaluating employee placement in range. Developing guidelines or policies for movement. Using Pay Ranges
  23. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Use market data Verify internal alignment Assign Jobs to Grades
  24. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Basic Function & Key Differentiators • Administrative Accounting Functions to support AP & AR • Update General Ledger • AP / Vendor Relations • AR • Maintain General Ledger • Prepare financial reports • Interpret financial reports and statements for management • Analyze financial data • Prepare budgets Degree & Certification Requirements None Bachelor’s Degree No certification required Bachelor’s Degree CPA required at proficiency Bachelor’s Degree CPA required at start Critical Skills at proficiency • Attention to Detail • Excel • Data Entry • Quickbooks • Attention to Detail • Quickbooks • GAAP • General Ledger • Monthly Reconciliation • Financial Reporting • GAAP • Financial Reporting • Financial Analysis • Budgeting Years of Experience • 1-2 at proficiency • 3-5 at proficiency • 5-7 at proficiency • 8-10 at proficiency Accounting Assistant Senior Accountant Accountant I Accountant II Grade C Grade E Grade 5 Grade 7 Build Career Path
  25. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Step 5: Implement Total Rewards Plan
  26. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Compensation Plan Element • Philosophy • Strategy • Ranges • Policies • Processes
  27. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Budgeting for Increases
  28. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Deal with Outliers
  29. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Strategies: Equip Managers • Educate them • Give them the big picture • Give them tools
  30. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan What can we do now? 1. Talk with executives about the need for an updated compensation plan. 2. Research market data for your employees’ jobs. 3. Create a pay structure to ensure internal equity. 4. Review your current compensation policies and decide where updates are needed.
  31. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan COMP & CULTURE
  32. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Everything you do becomes part of that story… The story of what you value
  33. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Compensation: The story of how much you are valued
  34. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Compensation: The keystone of culture
  35. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com/compensation-today Thank you!
  36. bamboohr.com payscale.com 5 Steps to a Smart Compensation Plan Questions? 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

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