1.
Jennifer Ferris, CCP
Sr. Compensation Professional
Mykkah Herner, MA, CCP
Director of ISX Services
www.payscale.com

2.
Ivan Hurtt
S E N I O R P R O D U C T M A N A G E R
B A M B O O H R
ihurtt@bamboohr.com
www.linkedin.com/in/ihurtt
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
@mykkah_herner
MykkahH@payscale.com
www.linkedin.com/in/mykkahherner

3.
A Changed Perspective

4.
Millennials will comprise 75% of
the global workforce by 2025.
- Deloitte
Millennials
91% of Millennials expect to stay with
your company fewer than three years.
– Future Workplace
v75%
v91%
Average tenure for Millennials is 2
years (5 years for Gen X)
– Payscale
v2yrs

5.
43%
1yr
90-
200%
Within the next 10 years, 43% of the US
workforce will be eligible for retirement
- Forbes
Baby Boomers
Among the jobs that 39-44 year olds
began, one third ended in less than a year
– Forbes
Cost of replacing an employee is
between 90-200% of their annual salary.
– SHRM

6.
83%
23m
52%
83% Of executives say they’re
increasing contingent workers.
- Oxford Economics
Contingent Workers
There’s projected to be 23 million contingent
workers by 2017 (up 26% in 2 years)
– MBO Partners
52% of Millennials expect to work
independently (82% in emerging markets).
– Deloitte

7.
• Workforce competency and skills gap
• Increased competition
• Globalization
• Culture
• Competition for talent
• Stresses on work-life balance
• Etc.
Additional Dynamics

8.
–Bersin by Deloitte

9.
–Ram Charan
Best-selling Author,
World-renowned Business Advisor

10.
Defining and
Quantifying Turnover

11.
the rate at which people leave a
place, company, etc., and are
replaced by others

12.
Good Turnover vs. Bad Turnover
Add good complexity
Low
Performer
High
Performer
Voluntary
Involuntary

13.
Retention is Still a Major Concern
PayScale 2016 CBPR

14.
Retention Compensation
Recruitment
Engagement
Development

15.
Common Myths of
Employee Turnover

16.
Turnover is Always Bad
http://lolsheaven.com/

17.
Turnover is bad for morale
Image: https://www.funergizers.com/3-Massive-Mistakes-Which-Lead-to-Low-Staff-Morale

18.
We can predict turnover based on generation

19.
Turnover is always
time-consuming and costly

20.
The Role of Corporate
Culture in Turnover

21.
Next Gen vs Traditional
Organization
Flexible work environment
Training ground
Strong leadership
Transparency of decisions and pay
Industry and/or job function
Millennials vs Highly tenured

22.
"HR today sits smack-dab in the middle of
the most compelling competitive battleground
in business, where companies deploy and
fight over that most valuable of resources—
workforce talent."
-Matthew D. Breitfelder
HBR: “Why did we ever go into HR”

23.
Business
Value
H
L
Strategic
Operational
Micro Small Mid Large
HR viewed as a cost center
Transactional HR High-Impact HR
HR as a strategic
investment
Evolution of HR

24.
Business
Value
H
L
Strategic
Operational
Micro Small Mid Large
Evolution of HR
HR viewed as a cost center
Transactional HR High-Impact HR
HR as a strategic
investment

25.
Understand your true worth
as a strategic necessity
Eliminate the unnecessary
shed all the dead weight
Organize your information
to lay a foundation for insight
Automate the operational
set yourself free to do great work
Maximize business value
align activities to strategic outcomes
Solve meaningful problems
learn to think, act, and win like a business.
Measure and report
the value and impact of your work
ESCAPE ELEVATE

26.
The Impact of
Turnover on your
Business

27.
• Morale
• Engagement
• Performance
• Training
• Knowledge retention
• Nimble to market changes
• Cost to replace
http://www.corporatelearningnetwork.com/

28.
Setting Your Comp
Plan Up for Success

29.
http://businessmodelalchemist.com/blog/2011/11/make-your-business-model-
clear-with-vivid-thinking-guest-post-by-dan-roam.html
Solid Base Pay Plan
Clear Strategy
Incentive Plan
Competitive Market Pay

30.
What is the right
compensation mix
for my org?

31.
Compensation Strategy
Talent Market(s)
Industry
Size
Location
Org type
Level of
competitiveness
How
aggressively
to pay
What to reward
Performance,
Experience,
etc

32.
How do organizations use variable pay?
15.8% 18.1%
61.8%
25.7%
40.0%
14.4%
Retention
bonuses
Hiring
bonuses
Individual
incentive
bonuses
Team
incentive
bonuses
Spot bonuses
or other
discretionary
bonus
programs
Other (please
specify)
PayScale 2016 CBPR

33.
Recruitment and Retention Plans
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Merit-based pay
plan
Non-discretionary
incentive based pay
plan
Discretionary bonus
plan
Stock option/grant
plan
Learning and
developmental
opportunities
More perks-gym
memberships,
catered lunch, etc
Other (please
specify)
2016 Plans for Recruiting and Retaining Top Performers, by Company Size
Less than 100 Employees 100 - 1,000 Employees More than 1,000 Employees
PayScale 2016 CBPR

34.
“I found a salary
report on the
internet and it says
I should be paid
more…”

35.
Immediate Actions
 Calculate turnover rate
 Identify good and bad
turnover
 Brainstorm retention
efforts that work
 Evaluate your comp plan –
does it align with org
objectives for retention?

36.
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com
Thank you!

37.
Questions?
BambooHR
Check out ondemand videos for Elevate at
https://www.bamboohr.com/elevate/
Download our free ebook Turnover: The Good, The Bad, and The Ugly at
http://resources.payscale.com/hr-whitepaper-turnover-the-good-the-bad-
and-the-ugly.html
PayScale