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PayScale: The Pay Transparency Challenge webinar

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Pay Transparency is one of the hottest topics in human resources right now. But what exactly does pay transparency mean?

Join Mykkah Herner, MA, CCP and Paige Hanley, CCP as they discuss pay transparency as a way of increasing trust within your organization to drive engagement, productivity, and business results.

Published in: Recruiting & HR
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PayScale: The Pay Transparency Challenge webinar

  1. 1. 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
  2. 2. www.payscale.com 14,000 Positions 3000 Customers 11 Countries 250 Compensable Factors 41 Million Salary Profiles
  3. 3. www.payscale.com Agenda • Pay Transparency Matters • Defining Transparency • The Transparency Spectrum • Moving to Greater Transparency • Immediate Actions www.payscale.com
  4. 4. www.payscale.com
  5. 5. Pay Transparency Trust Better Business Outcomes! Engagement Why Would Anybody be More Transparent about Pay? www.payscale.com
  6. 6. 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% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 1 2 3 4&5 % Responses with Intent to Leave % Responses with High Satsifaction www.payscale.com
  7. 7. Workforce Demographics… www.payscale.com
  8. 8. … are changing www.payscale.com
  9. 9. Everybody’s doing it… www.payscale.com
  10. 10. … whether they want to or not • CEO to worker ratios • 990s • Say on Pay www.payscale.com
  11. 11. Defining Transparency www.payscale.com
  12. 12. What are we being transparent about? • Pay Philosophy • Pay Strategy • Pay Practices • Market Studies • Pay Rates www.payscale.com
  13. 13. Pay Philosophy www.payscale.com
  14. 14. • Defining the competition • Aiming to meet or exceed the competitions • Deciding what matters • Acknowledging various segments Pay Strategy www.payscale.com
  15. 15. • We have a plan • Jobs have grade assignments • Range minimums / Range maximums • Increase process / cycle • Budget process / cycle Pay Practices www.payscale.com
  16. 16. Market Studies www.payscale.com
  17. 17. Salary Rates www.payscale.com
  18. 18. The Transparency Spectrum www.payscale.com
  19. 19. www.payscale.com Market Study and Processes known
  20. 20. 1. Only own pay
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. Moving to greater transparency www.payscale.com
  28. 28. • Explain what transparency is (and isn’t) • Link transparency with results that matter Gain executive support www.payscale.com
  29. 29. • 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 www.payscale.com
  30. 30. • What’s the make-up of your workforce? • Are they ready for more transparency? • Do they want it? Assess Workforce www.payscale.com
  31. 31. D ecider A ccountable R esponsible C onsulted I nformed Get clear about roles www.payscale.com
  32. 32. Develop a plan www.payscale.com 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
  33. 33. Functional Transparency
  34. 34. 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 www.payscale.com
  35. 35. 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 3000 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, MA, CCP Director of Professional Services Paige Hanley, CCP Sr. Compensation Professional www.payscale.com

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