Now that Spring is here it’s a great time to review your comp plan. Whether you are updating an existing plan or have something more informal in place, this will be an excellent webinar to attend. We’ll walk you through some basics such as evaluating your compensation philosophy and strategy, keeping up on critical jobs in the market, and ensuring basic compliance.

1. Spring Clean your Comp
Mykkah Herner, MA, CCP
Modern Compensation Evangelist
Ryan Fowler
Compensation Professional

2. www.payscale.com
15,000 Positions 3500 Customers 11 Countries
250 Compensable Factors
54Million Salary Profiles

3. www.payscale.com
Agenda
How is spring cleaning a comp thing?
Compensation plan review
Deep cleaning your comp plan
Cycling through smaller reviews
Where do you start?

4. www.payscale.com
Understanding Comp
through Spring Cleaning
http://kickstartyourtransition.com/blog/spring-clean-your-closet/

5. Just like you deep-
clean your house,
you should
thoroughly review
your compensation

6. www.payscale.com
Compensation Plan Review
http://www.minteerteam.com/Blog/Spring-Cleaning-Checklist

7. www.payscale.com
Compensation Philosophy
Answers the big “why” question
Should change infrequently
Review annually
Our compensation program is designed to retain, attract, and motivate
talented employees who drive the company’s success and uphold the
company values. In recognition of the necessity for top-tier talent, we
strive to provide base salary that exceeds the market…

8. www.payscale.com
Compensation Strategy
Operationalizes the “why” with “how”
Review annually
Quarterly for critical jobs
Talent Market(s)
Industry, Size,
Location
Level of competitiveness
How
aggressively to
pay
What to reward
Performance,
Experience, etc

9. www.payscale.com
Compensation Structure
Provides guidelines for pay
Review annually
Quarterly for critical jobs

10. www.payscale.com
Compensation Policies
Help ensure the plan is carried out
Review annually
As needed for key laws passed
 Hiring rate: discretion is given to managers to hire from 0-33%
range penetration; up to 50% requires HR approval, beyond that
requires executive approval.
 Promotions: increases, in the case of promotion, should be at least
to the bottom of the new range, at least 7% and not to exceed 15%.

11. www.payscale.com
Compensation Processes
Provide the literal steps to follow
Review annually
Process for adding or evaluating a job:
1. Manager proves organizational need for the job or job change
2. Manager develops job description, with appropriate compensable factors
3. HR obtains market pricing and slots into structure
4. HR provides manager with appropriate pay range and hiring range

12. www.payscale.com
Deep cleaning your
comp plan
fsdf

13. www.payscale.com
What does comp deep cleaning
involve?
• Refresh market data
• Evaluate overall structure
• Evaluate individual jobs
• Review for internal alignment
• Decide which adjustments to accept
• Communicate

14. www.payscale.com
Refresh market data
• Identify data source
• Match your jobs
• Apply strategy to data
o Market
o Percentile
• Age data as necessary

15. www.payscale.com
Evaluate overall structure
Do your ranges align to market overall?

16. www.payscale.com
Evaluate individual jobs
Did some move faster than others?
Vs.

17. www.payscale.com
Review internal alignment
Have your adjustments created issues anywhere?

18. www.payscale.com
Decide which plan edits to
accept
Determine cost to adjust
For example: if we adjust our
ranges up 2%, how does that
impact our green outliers?
Consider:
• Top performers
• Hot jobs
• Compression
• Green outliers

19. www.payscale.com
Communicate
Update and Inform Executives
• market change and cost to stay competitive
• recommended course of action
Train Managers
• company philosophy & strategy
• current market position and comp plan adjustments
• communication best practices
Adjust Employees
• managers share market and performance adjustments

20. www.payscale.com
Cycling through smaller
comp reviews
http://www.yourmodernfamily.com/room-room-cleaning-schedule/

21. www.payscale.com
Compensation Calendar
Q1
 Enter
adjustments
 Total Comp
Reports
Q2
 Market Study
 Plan Review
 Trainings
Q3
 Budgeting
 Evaluations
Q4
 Calculate
Increases
 Goal Setting

22. www.payscale.com
Staggered Cycles
January
February
March
April
May
June
July
August
September
October
November
December

23. www.payscale.com
Lessons from inventory
(or cleaning)
Break larger tasks into smaller cycles

24. Review cycles

25. www.payscale.com
Monthly reviews
 Market study hot jobs
 Market study for company segment A
 Plan review for company segment B
 Adjustments for company segment C
 Policy review
 Process review
January
Februar
y
March
April
May
June
July
August
Septem
ber
October
Novemb
er
Decemb
er

26. www.payscale.com
Identify Hot Jobs…
Decide what’s hot from your business goals
Let the market decide
Goal:
Develop 2 market leading
products in the next 12
months
Hot jobs:
Product Managers,
Product Marketers,
Software Developers

27. www.payscale.com
… and decide what to do
• Market bonus
• Project incentive
• Base pay raise
• Do something creative
• Do nothing

28. www.payscale.com
Where do you start?
• Map out competing organizational priorities on a calendar
• Calendar out comp activities, counting back from budget
deadlines
• Identify jobs needed to accomplish business goals; evaluate
market pricing vs pay practices
• Evaluate all elements of your plan: Philosophy, strategy,
structure, policies, processes

29. PayScale Delivers Where Other Compensation Providers Fall Short
PayScale leads the world in compensation knowledge with the freshest and
most detailed data from over 54 million salary profiles. More than 3500
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
Modern Compensation Evangelist
Ryan Fowler
Compensation Professional
www.payscale.com