Employees need to know that they are being compensated appropriately for their level of contribution. Messages about compensation may come from Executives, HR, or their managers directly.

1. Communicating
Compensation:
Talking with Employees
Jennifer Ferris, CCP
Compensation Professional
Mykkah Herner, MA, CCP
Manager of Professional Services
www.payscale.com

2. www.payscale.com
14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors
40 Million Salary Profiles

3. COMMUNICATING
COMPENSATION
Part I: Gaining Executive Support
Part II: Equipping Your Managers
Part III: Talking with Employees

4. www.payscale.com
Agenda
Recap of Part I: Gaining Executive Support
Recap of Part II: Equipping your Managers
Develop a communication plan
• Prepare your executives to deliver messaging
• Ready managers for different scenarios
Tips for Employees
Immediate Action

5. Recap of Part I:
Gaining Executive Support
• Overview of Communication Basics
• Overview of Compensation Basics
Communicating Compensation to
Executives
• Understanding the Executive
Audience
• Align compensation to business
goals
• Incorporate leading edge practices
• Keep executives up-to-date with
quick snapshots
http://resources.payscale.com/hr-webinar-
recorded-communicating-compensation-
gaining-executive-support.html

6. Recap of Part II:
Equipping your Managers
Set expectations with managers
Equip managers for their role
• Negotiation skills
• Listening skills
• Compensation review meeting
• Talking points
Present compensation basics to
managers
http://resources.payscale.com/hr-webinar-
recorded-communicating-compensation-
equipping-your-managers.html

7. Develop a
Communication
Plan

8. TACTIC RESPONSIBILITY AUDIENCE KEY MESSAGES TIMELINE
OBJECTIVE 1: FINALIZE COMP PLAN - GRADE ASSIGNMENTS, COMMUNICATION PLAN, POLICY REVISION
OBJECTIVE 2: OBTAIN EXECUTIVE APPROVAL
OBJECTIVE 3: TRAIN MANAGERS ON COMP PLAN AND HAVING EFFECTIVE CONVERSATIONS
OBJECTIVE 4: EXECUTIVES ANNOUNCE PLAN TO FULL ORG
OBJECTIVE 5: SUPPORT MANAGERS TO ROLL OUT COMP PLAN TO THE EMPLOYEE LEVEL
8

9. Executive Messaging
Prepare talking points for executives, covering:
• Compensation philosophy & purpose
• Compensation plan changes at the highest level
• Next steps – talk with managers
• Approve program
• Communicate program to org at a high level
• Perform manager/supervisor role
Executive Roles

10. Manager Toolkit
• Understand the program
• Communicate with employees
• Get support from HR
Manager &
Supervisor Roles
Prepare tool kit for managers, including:
• Compensation plan talking points
• Compensation plan information
• Details for each employee they supervise
• Tips for each type of conversation they may have

11. Lead The Conversation
80% of employees will compare pay
Finding out where you stack up vs.
peers can dramatically change:
• Desire to stay/leave
• Overall job satisfaction
• Exert more/less effort
I was approached by an employee who was very upset that her base
pay was being frozen. After going through our philosophy, the
employees pay compared to the grade and range she was in the
employee left the meeting with a smile on her face, feeling positive
about the conversation.
Monarch Landing, 300 employees
Source: Card, D., et al., (2011); “Inequality at Work: The Effect of Peer Salaries on Job Satisfaction.”
“Wow! This is what our employees need to see! They only
ever talk about what they see in their paycheck, so this
would really drive home our total investment!”
Alberta Motor Association - 2,000 employees

12. Accounting
Assistant
Senior
Accountant
Accountant I
Accountant II
Grade C Grade E Grade 5 Grade 7
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

13. Anticipate
Employee
Questions &
Concerns

14. Employee Pay is Low
Consider
 Should the employee pay be low?
 Is the organization able to adjust
employee pay?
14
Talking Points
 Start by appreciating accomplishments
 Mention market movement of the position if applicable
 Explain position in range
 Remind of last year’s adjustment amount if appropriate
 Discuss what you will or won’t do for increase or bonus depending on
skillset, performance, etc.
 Open the door

15. Employee Pay is High
Consider
 Is the employee truly red-
circled?
 What does the employee need
to move to the next level?
 Does the organization need
that work performed? And if
so, are they willing to pay?
15
Talking Points
 Start by appreciating
accomplishments
 Mention market movement of the
position, or lack thereof
 Explain position in range &
organizational policy
 Remind of last year’s adjustment
amount if appropriate
 Discuss what you will or won’t do for
increase or bonus
 Open the door

16. Employee Given No
Performance-based Increase
Consider
 What does the employee need to be
eligible for the next round of increases?
 What potential does the employee have to
move up in the organization?
16
Talking Points
 Start by appreciating contributions
 Remind of performance issues
 Explain position in range
 Discuss what you will or won’t do for increase or bonus depending on
skillset, performance, etc.
 Explain what they need to do to be eligible next go round

17. “I FOUND A
SALARY
REPORT
ON THE
INTERNET”
o Conflicting
information
o The “independent
study”
o Position pricing vs.
people pricing
o The conversation
17

18. Additional Tips
for Managers

19. 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
19

20. Defining the Generations

21. Identify Creative Solutions
When more money isn’t an option:
 Know what the employee’s interests are; what will motivate
them?
 Additional/alternative perks
 FTE preference
 Staggered increase or offer
 PTO
21

22. 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

23. 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
Jennifer Ferris, CCP
Compensation Professional
Mykkah Herner, MA, CCP
Manager of Professional Services,
PayScale, Inc.
www.payscale.com