1.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
ToExecutives and Managers

2.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Rusty Lindquist
V P T H O U G H T L E A D E R S H I P
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

3.
4
Compensation
perspectives on
Communication

4.
1
Pay
Transparency

5.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Defining Transparency

6.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
The PayScale Pay Transparency Spectrum

7.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Why Would Anybody
be More Transparent
about Pay?
Pay Transparency
Trust
Better Business
Outcomes!
Engagement

8.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
www.payscale.com
Talking about pay
isn’t always fun

9.
2
Compensation’s
Organizational Impact

10.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Culture
Performance
Engagement Retention

11.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Performance
Loyalty
Satisfaction Engagement
Retention
CULTURE
Greater Business Output
CULTURE

12.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
CULTURE
Impact?
CULTURE

13.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Everything you do
becomes part of that story…
The story of what you value

14.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Compensation:
The story of
how much you are valued

15.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Compensation
The Keystone
of Culture

16.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Making the Compensation
Conversation a Culture Builder
Don’t be offended
Be open
Take it seriously Be objective
Be proactive
Be Positive

17.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
of employees are ok with
low pay if the rationale is
explained
82%
of companies are confident
in managers’ ability to have
tough pay conversations
80% of employees paid above
market believe they’re paid
at or below
17%
—PayScale Employee Survey 2015
—PayScale Employee Survey 2015
—PayScale Comp Best Practices Report 2016

18.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
How does perception of pay
impact employees?

19.
3
Communicating
with Executives

20.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
www.payscale.com
• Understand the executive audience
• Align compensation with business objectives
• Incorporate leading edge practices
• Keep executives up to date
Exec communication tips

21.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
What do your Executives
Care About?

22.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Benefits of Comp Plans
22

23.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Prepare Talking Points
• Compensation philosophy and
purpose
• Compensation plan changes at
the highest level
• Market study and results
• Next steps—talk with managers

24.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Report High Level Info
• Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc.)
• Report these on a regular basis

25.
4
Communicating
with Managers

26.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Compensation is about
an exchange of value,
not money.

27.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
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

28.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Agents of the
Organization

29.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Equip Managers
• Set expectations
• Educate them
• Give them the big picture
• Give them tools

30.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
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

31.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Consider Workplace “Currency”
 Know what motivates your employees
 Additional/Alternative Perks
 FTE preference
 Staggered increase or offer
 PTO
 Work assignments
 Development opportunities
31
Identify Creative Solutions

32.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
The Compensation
Review Meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up

33.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
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”

34.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Thankyou!
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

35.
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Questions?
Rusty Lindquist
V P S T R A T E G I C H R I N S I G H T S
B A M B O O H R
@ r u s t y l i n d q u i s t
r u s t y @ b a m b o o h r . c o m
w w w . l i n k e d i n . c o m / i n / r u s t y l i n d q u i s t
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
@ m y k k a h _ h e r n e r
M y k k a h H @ p a y s c a l e . c o m
w w w . l i n k e d i n . c o m / i n / m y k k a h h e r n e r

36.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers