Communicating compensation can be like walking a minefield—mistakes can be disastrous and getting it right is critical to your organization’s health and well-being. In this webinar, we’ll discuss the strategy of communicating compensation, how to make and execute a compensation plan, and how to include executives and managers in the conversation. We’ll also talk about pay transparency, and how to use compensation conversations as an opportunity to build both your culture and your internal influence.
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Communicating Compensation to Executives 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
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Communicating Compensation to Executives and Managers
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.
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Communicating Compensation to Executives and Managers
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
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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
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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
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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
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Communicating Compensation to Executives and Managers
of companies are confident
in managers’ ability to have
tough pay conversations
2016 PayScale Compensation Best Practices Report
17%
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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
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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
33
Identify Creative Solutions
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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”
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Communicating Compensation to Executives and Managers
Questions?
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