Communicating Compensation to Executives and Managers

bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
4 ways to
communicate compensation
that drive strategic outcomes.
Communicating Compensation
ToExecutives and Managers

Todd Grierson
H E A D I N D U S T R Y R E L A T I O N S
A T B A M B O O H R
Mykkah Herner
M O D E R N C O M P E N S A T I O N
E V A N G E L I S T A T P A Y S C A L E

1
Three Perspectives on
Compensation
Communication

Pudgy desk on fire

HR wants to be involved in handling
bigger issues that directly impact the
company and its bottom line.
1
The August 2014 study collected responses via an online survey from 1,307 U.S.-based HR professionals (the majority
of whom [75 percent] have worked in the HR industry for 10+ years) who are currently employed by small (<50
employees) to large (500+ employees) businesses. This research was generated by BambooHR and HR Daily Advisor.

Edit typo

Pudgy conveyor belt
from pitch deck

How does perception of pay
impact employees?

Most Do Not Know if They Are Paid Fairly
Full Article: https://hbr.org/2015/10/most-people-have-no-idea-whether-theyre-paid-fairly

of employees are ok with low pay if
the rationale is explained
—PayScale Employee Survey 2015
82%

v
HOW
WHY
Values
Mission
Beliefs
Culture | Corp. Brand
WHAT
Start with Why
OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE)

“People are motivated by
consequences they anticipate.”
—Crucial Conversations

BambooHR Core Values

1
Understanding
Pay Transparency

Defining Transparency

Transparency Spectrum

Pay Transparency
gets everyone in the same
boat, paddling in the
same direction.

Why Would Anybody
be More Transparent
about Pay?
Pay Transparency
Trust
Better Business
Outcomes!
Engagement

www.payscale.com
Talking about pay
isn’t always fun

1
Communicating with
Executives

www.payscale.com
• Understand the executive audience
• Align compensation with business objectives
• Incorporate leading edge practices
• Keep executives up to date
Exec communication tips

What do your Executives
Care About?

Benefits of Comp Plans
23

Prepare Talking Points
• Compensation philosophy and
purpose
• Compensation plan changes at
the highest level
• Market study and results
• Next steps—talk with managers

Report High Level Info
• Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc.)
• Report these on a regular basis

1
Communicating
with Managers

Compensation is about
an exchange of value,
not money.

Value Exchange
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

of companies are confident
in managers’ ability to have
tough pay conversations
2016 PayScale Compensation Best Practices Report
17%

Agents of the
Organization

Equip Managers
• Set expectations
• Educate them
• Give them the big picture
• Give them tools

Negotiation Skills
• Sell the organization & the full package on the table
• Sell the benefits of the offer (initial or increase)
• Listen to the ask behind the ask
• Meet them and then move

Consider Workplace “Currency”
 Know what motivates your employees
 Additional/Alternative Perks
 FTE preference
 Staggered increase or offer
 PTO
 Work assignments
 Development opportunities
33
Identify Creative Solutions

The Compensation
Review Meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up

Prepare Manager Toolkits
• Compensation Plan Talking Points
• Compensation Plan Information
• Details for each employee they supervise
• Tips for each type of conversation they may have
o Pay is low or perceived to be low
o Pay is high
o No increase due to performance
o “I found this on the internet”

Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Thank you!

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

Final Challenge
1%
bigger
37x
growth

Communicating Compensation to Executives and Managers

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