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Webinar-Getting smart about compensation

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In this webinar we'll arm you with solid economic evidence of the organizational impact of compensation, giving you crucial ammunition you can use to go advocate for a more disciplined approach. We'll also go into the practical steps you can take to step up your own approach to comp by building a comp strategy, implementing a market-based pay structure, building pay ranges, training managers, and so much more.

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Webinar-Getting smart about compensation

  1. 1. bamboohr.com payscale.com 2017 Compensation Best Practices Getting Smart About Compensation and how to know if you’re doing it right!
  2. 2. bamboohr.com payscale.com 2017 Compensation Best Practices Rusty Lindquist Vice President, Thought Leadership BambooHR Camie Bailey Senior Customer Education Specialist Payscale
  3. 3. bamboohr.com payscale.com 2017 Compensation Best Practices Innovation: The keystone of differentiation
  4. 4. bamboohr.com payscale.com 2017 Compensation Best Practices Competitive Abundance GLOBALIZATION has shrunk the world TECHNOLOGY has leveled the playing field LOW ENTRY BARRIER has increased startups
  5. 5. bamboohr.com payscale.com 2017 Compensation Best Practices Differentiation decay
  6. 6. bamboohr.com payscale.com 2017 Compensation Best Practices Focus on Who You Are PEOPLE Relentlessly attracting, inspiring, and empowering great people. CULTURE Creating a great place to work, so great work can take place. @Rusty Lindquist
  7. 7. bamboohr.com payscale.com 2017 Compensation Best Practices
  8. 8. bamboohr.com payscale.com 2017 Compensation Best Practices Culture is story Everything you do becomes part of that story… The story of what you value
  9. 9. bamboohr.com payscale.com 2017 Compensation Best Practices Compensation is the story The story of how much you are valued.
  10. 10. BUILDING A COMP STRATEGY
  11. 11. bamboohr.com payscale.com 2017 Compensation Best Practices 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?
  12. 12. bamboohr.com payscale.com 2017 Compensation Best Practices What is the right compensation mix for your company?
  13. 13. bamboohr.com payscale.com 2017 Compensation Best Practices —Harvard Business Review “Keep the plan simple. It should be extraordinarily clear which outcomes you are rewarding.”
  14. 14. WINNING EXECUTIVE SUPPORT
  15. 15. bamboohr.com payscale.com 2017 Compensation Best Practices Payroll is, by far, a company’s biggest expense; the cost of getting it wrong is tremendous.
  16. 16. bamboohr.com payscale.com 2017 Compensation Best Practices 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.
  17. 17. bamboohr.com payscale.com 2017 Compensation Best Practices 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
  18. 18. bamboohr.com payscale.com 2017 Compensation Best Practices 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.
  19. 19. – Ram Charan Best-selling Author, Business Advisor
  20. 20. bamboohr.com payscale.com 2017 Compensation Best Practices “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
  21. 21. BUILDING A MARKET- BASED PAY STRUCTURE
  22. 22. bamboohr.com payscale.com 2017 Compensation Best Practices Decide on the correct job evaluation method. Market Pricing v. Point Factoring
  23. 23. bamboohr.com payscale.com 2017 Compensation Best Practices Choose The Right Data Source
  24. 24. TRAINING MANAGERS
  25. 25. bamboohr.com payscale.com 2017 Compensation Best Practices of organizations feel very confident in their managers’ ability to have tough conversations about pay 19%
  26. 26. bamboohr.com payscale.com 2017 Compensation Best Practices 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
  27. 27. bamboohr.com payscale.com 2017 Compensation Best Practices Communication Roles 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
  28. 28. bamboohr.com payscale.com 2017 Compensation Best Practices Making the Compensation Conversation a Culture Builder Don’t be offended Be open Take it seriously Be objective Be proactive Be Positive
  29. 29. BUILDING PAY RANGES
  30. 30. bamboohr.com payscale.com 2017 Compensation Best Practices Identify Market Differentials Schedules preserve both competitive pay to local markets and internal equity. Baltimore +5% Dallas Main Minneapolis +5%
  31. 31. bamboohr.com payscale.com 2017 Compensation Best Practices 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.
  32. 32. bamboohr.com payscale.com 2017 Compensation Best Practices Some considerations include • How wide should my ranges be? • How much overlap between pay ranges is good? Build Pay Ranges
  33. 33. bamboohr.com payscale.com 2017 Compensation Best Practices Evaluating employee placement in range. Developing guidelines or policies for movement. Using Pay Ranges
  34. 34. bamboohr.com payscale.com 2017 Compensation Best Practices Use market data Verify internal alignment Assign Jobs to Grades
  35. 35. 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
  36. 36. USE DATA
  37. 37. Employee Report
  38. 38. IMPLEMENT A TOTAL REWARDS PLAN
  39. 39. bamboohr.com payscale.com 2017 Compensation Best Practices Compensation Plan Element • Philosophy • Strategy • Ranges • Policies • Processes
  40. 40. bamboohr.com payscale.com 2017 Compensation Best Practices Budgeting for Increases
  41. 41. bamboohr.com payscale.com 2017 Compensation Best Practices Deal with Outliers
  42. 42. bamboohr.com payscale.com 2017 Compensation Best Practices
  43. 43. bamboohr.com payscale.com 2017 Compensation Best Practices Feeling appreciated, valued, and adequate rewarded for your effort. Value Total rewards Va Value Rewards Recognition Compensation What you get from work
  44. 44. bamboohr.com payscale.com 2017 Compensation Best Practices Do You Ask Them About Pay?
  45. 45. bamboohr.com payscale.com 2017 Compensation Best Practices Thank you! 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
  46. 46. bamboohr.com payscale.com 2017 Compensation Best Practices Questions? Rusty Lindquist Vice President, Thought Leadership BambooHR @rustylindquist Camie Bailey Senior Customer Education Specialist Payscale

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