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Webinar - How to Communicate Compensation to Employees

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A study conducted by PayScale revealed that employees’ perceptions of how they are paid are a better predictor of their intent to stay than their actual fair pay to the market. These implications create a huge opportunity for employers to get it right when it comes to communicating pay effectively.

Conversations about pay are often perceived as scary, demoralizing, or just boring. However, done right, pay talk can be quite motivating.

View this webinar and learn:

-Why talking about pay with employees is so important
-How you can train your managers to have useful compensation conversations
-What typical situations you may encounter when it’s time to talk pay

In partnership with BambooHR

Published in: Recruiting & HR
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Webinar - How to Communicate Compensation to Employees

  1. 1. Communicating Pay to Employees Mykkah Herner, MA, CCP Modern Compensation Evangelist Paige Hanley, CCP Sr. Compensation Professional Communicating Pay to Employees
  2. 2. Rusty Lindquist V P S T R A T E G I C H R I N S I G H T S B A M B O O H R @ r u s t y l i n d q u i s t r u s t y @ b a m b o o h r . c o m w w w . l i n k e d i n . c o m / i n / r u s t y l i n d q u i s t Mykkah Herner M O D E R N C O M P E V A N G E L I S T P A Y S C A L E @ m y k k a h _ h e r n e r M y k k a h H @ p a y s c a l e . c o m w w w . l i n k e d i n . c o m / i n / m y k k a h h e r n e r
  3. 3. Understanding How Pay is Perceived
  4. 4. Feeling appreciated, valued, and adequate rewarded for your effort. Value Total rewards Va Value Rewards Recognition Pay What you get from work
  5. 5. Comp is about an Exchange of Value Not just Money Experience in industry Experience in market vertical Experience in adjacent markets Experience in field of discipline Experience in adjacent disciplines Experience with competitors Product knowledge Competitor knowledge Time and experience in company Education Discipline training and certification Supply and demand Employer Value DriversEmployee Value Drivers Base pay Performance Pay Paid time off Benefits Travel Culture and environment Work flexibility Work/Life balance Meaningful work Who you work with Challenging work Opportunity to impact Job security Shared purpose / mission Career advancement opportunities Autonomy Senior leadership
  6. 6. Bias at Work Confirmation Bias Assimilation Bias
  7. 7. Perception of pay matters
  8. 8. Five Generations of 2020 Gen Z Millenials Gen X Baby Boomers Traditionalists Bureau of Labor Statistics Employment Projections
  9. 9. Lead The Conversation 80% of employees will compare pay Source: Card, D., et al., (2011); “Inequality at Work: The Effect of Peer Salaries on Job Satisfaction.”
  10. 10. Train Managers To Talk About Comp
  11. 11. of organizations feel very confident in their managers’ ability to have tough conversations about pay 19%
  12. 12. Comp is about an Exchange of Value Not just Money Experience in industry Experience in market vertical Experience in adjacent markets Experience in field of discipline Experience in adjacent disciplines Experience with competitors Product knowledge Competitor knowledge Time and experience in company Education Discipline training and certification Supply and demand Employer Value DriversEmployee Value Drivers Base pay Performance Pay Paid time off Benefits Travel Culture and environment Work flexibility Work/Life balance Meaningful work Who you work with Challenging work Opportunity to impact Job security Shared purpose / mission Career advancement opportunities Autonomy Senior leadership
  13. 13. Communication Roles (and Times) Executives: Communicate program to organization at a high level Managers: Communicate compensation details to employees Employees: Bring questions to manager or HR HR: Prepare communication, consult and inform Executives, train Managers
  14. 14. Tips for Effective Employee Communication • Know your audience! • Tell a holistic story • Make the path forward clear • Prepare, Prepare, Prepare • Be direct and also empathetic • Communicate early and often
  15. 15. Drive Greater Transparency
  16. 16. Anticipate Employee Questions
  17. 17. Employee Pay is Low Consider • Should the employee pay be low? • Is budget available? Talking Points • Start with appreciation • Mention market movement • Explain position in range • Provide context • Share this year’s increase amount • Open the door
  18. 18. Consider • Is this really another job? • Does the organization need it? • Is the employee qualified? Talking Points • Start with appreciation • Mention market movement • Explain position in range • Provide context • Share this year’s situation • Open the door Employee Pay is High
  19. 19. Performance doesn’t warrant increase Talking Points • Start with appreciation • Mention market movement • Explain position in range • Provide context • Share this year’s situation • Open the door Consider • How can they get up to par? • What future potential is there?
  20. 20. Perception of Increase is Unfavorable Consider • Will they perceive their adjustment is fair? • How connected are they with others? Talking Points • Reiterate accomplishments • Re-focus on individual objectives • Remind of market value • Discuss why their pay is fair • Open the door
  21. 21. “I found a salary report online”
  22. 22. Get Specific: Use Data
  23. 23. Employee Report
  24. 24. Additional Tips For Managers
  25. 25. Consider the Employee Perspective The employee is often going to want: • More money • Promotion • To be paid like their peers • To understand why others are paid more than they are
  26. 26. Identify Creative Solutions Consider Workplace “Currency” • Paid paid vacation • Additional/Alternative Perks • FTE preference • Staggered increase or offer • PTO • Work assignments • Development opportunities
  27. 27. Rental Coordinator General Manager, Rental Rental Coordinator Supervisor Rental Manager Grade 3 Grade 5 Grade 7 Grade 12 Identify Development Opportunities
  28. 28. Immediate Actions • Connect with your employees about what motivates them • Identify conversations about compensation you need to have with your employees • Develop clear career paths • Prepare any high level messages about comp • Prep toolkits for your managers to use when communicating with employees
  29. 29. bamboohr.com 1-866-387-9595 Follow BambooHR and PayScale on social media: bamboohr.com/blog payscale.com/compensation-today Thank you!
  30. 30. bamboohr.com 1-866-387-9595 Receive a free job posting on BambooHR’s ATS and full HRIS for one week. We will contact everyone within a few days to set this up. Questions? Receive the related eBook from PayScale Communicating Compensation We will contact everyone within a few days to share the eBook.
  31. 31. bamboohr.com 1-866-387-9595 Questions? Rusty Lindquist V P S T R A T E G I C H R I N S I G H T S B A M B O O H R @ r u s t y l i n d q u i s t r u s t y @ b a m b o o h r . c o m w w w . l i n k e d i n . c o m / i n / r u s t y l i n d q u i s t Mykkah Herner M O D E R N C O M P E V A N G E L I S T P A Y S C A L E @ m y k k a h _ h e r n e r M y k k a h H @ p a y s c a l e . c o m w w w . l i n k e d i n . c o m / i n / m y k k a h h e r n e r

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