Creating Pay Transparency In The Workplace
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The document discusses creating transparency in the workplace. It begins with an agenda covering topics like why transparency matters and defining different levels of transparency. It then discusses a transparency spectrum with different levels of transparency around pay rates and compensation processes. The document provides advice on moving to greater transparency, including gaining executive support, training managers, assessing the workforce, and developing a transparency plan. It concludes with immediate actions companies can take to increase transparency.
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Creating Pay Transparency In The Workplace
- 2. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Rusty Lindquist V P O F H R I N S I G H T S A T B A M B O O H R Paige Hanley, CCP S E N I O R C O M P E N S A T I O N P R O F E S S I O N A L A T P A Y S C A L E
- 3. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com • Pay Transparency Matters • Defining Transparency • The Transparency Spectrum • Moving to Greater Transparency • Immediate Actions Agenda
- 4. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Pay Transparency gets everyone in the same boat, paddling in the same direction.
- 5. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Why Would Anybody be More Transparent about Pay? Pay Transparency Trust Better Business Outcomes! Engagement
- 6. Employees who perceive a ‘fair and transparent pay practice’have lower intent to leave and higher satisfaction PERCENT OF RESPONSES LOW AVERAGE HIGH 50% 31% 19% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 1 2 3 4&5 % Responses with Intent to Leave % Responses with High Satsifaction
- 7. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Workforce Demographics…
- 8. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com … are changing
- 10. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com ...whether they want to or not • CEO to worker ratios • 990s • Say on Pay
- 11. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Defining Transparency Defining Transparency
- 12. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com What are we being transparent about? • Pay Philosophy • Pay Strategy • Pay Practices • Market Studies • Pay Rates
- 13. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Pay Philosophy
- 14. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com • Defining the competition • Aiming to meet or exceed the competition • Deciding what matters • Acknowledging various segments Pay Strategy
- 15. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Pay Practices • Have a plan • Jobs have grade assignments • Range minimums / Range maximums • Increase process / cycle • Budget process / cycle
- 16. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Market Studies
- 17. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Salary Rates
- 18. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com The Transparency Spectrum
- 19. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com
- 20. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com 1. Only own pay
- 21. • Philosophy shared with managers • High-level strategy shared with managers • Plan shared with managers • Manager and employee discuss employee’s pay 2. Manager & Employee Talk About Pay
- 22. 3. Company Pay Philosophy • Philosophy shared with employees • Strategy shared with managers • Plan shared with employees; ranges shared with employees and managers • Do a market study • Manager and employee discuss employee’s pay
- 23. 4. Market Study & Comp Processes known • Philosophy explained to employees • High-level strategy shared with employees; full strategy shared with managers • Managers know all ranges to their level; employees know ranges in their path and how to advance • Market study provider known; employee to market results known by employee • Manager and employee discuss employee’s pay
- 24. 5. Managers Trained to Talk Pay • Philosophy explained to employees • High-level strategy shared with employees; full strategy shared with managers • Managers know all ranges to their level; employees know ranges in their path and how to advance • Company wide results known; Employee to market results known by employee • Manager and employee discuss employee pay well
- 25. • Philosophy explained to employees • Full strategy shared with employees • All ranges shared with employees; budget and increase process / cycle known • Department-wide results known • Manager and employee discuss employee pay well 6. Published Ranges & Grades
- 26. • Philosophy explained to employees • Full strategy shared with employees • All ranges shared with employees; budget and increase process / cycle known • Employee to market results shared • Everybody knows everybody’s pay 7. Everybody Knows Your Salary
- 27. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Gartner Hype CycleVISIBILITY TIME / MATURITY Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity
- 28. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Adoption CurveVISIBILITY INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS Chasm of Wants
- 29. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Moving to greater transparency
- 30. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com • Explain what transparency is (and isn’t) • Link transparency with results that matter Gain executive support
- 31. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com • Provide information about the business, rationale for increasing communication, and tools for success • Expect more to get more • No really, train them on communication Train Managers
- 32. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com • What’s the makeup of your workforce? • Are they ready for more transparency? • Do they want it? Assess Workforce
- 33. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Get clear about roles
- 34. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Develop a plan
- 35. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Functional Transparency
- 36. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Immediate Actions • Assess your workforce • Educate yourself further about transparency • Notice what you already do in your org • Think about what “pushing the envelope” means to you • Begin talking with your executives
- 37. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com/compensation-today Thank you!
- 38. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E bamboohr.com payscale.com 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 a free ebook on communicating compnesation. PayScale http://resources.payscale.com/hr-ebook-communication.html
Notes de l'éditeur
- SLIDE: RUSTY
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- SLIDE: PAIGE
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- SLIDE: PAIGE SPEAKER NOTES: Transparency is a means to an end – We do transparency to build trust - building trust increases both engagement and through that productivity/performance - performance drives business results and outcomes
- SLIDE: PAIGE Consider workforce make-up including: Generation Life stage Etc
- SLIDE: PAIGE Source: http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/ Millennials prefer transparency of pay practice A nod to Gen Z – we already know they like more privacy (Move from things like facebook to things like snapchat or Instagram) than millennials – it’s the pendulum swinging back towards the center. But – your WF is likely NOT mainly Gen Z, and won’t be for some years.
- SLIDE: PAIGE http://techcrunch.com/2015/05/24/lockstep-salaries/ http://www.pbs.org/newshour/rundown/reddit-ceo-ellen-pao-bans-salary-negotiations/
- SLIDE: PAIGE New laws on the books making it illegal to take action against employees who talk about their pay.
- SLIDE: RUSTY
- SLIDE: RUSTY Within each of these areas there multiple levels of transparency as well so let’s look at them in a little more detail.
- SLIDE: RUSTY
- SLIDE: RUSTY SPEAKER NOTES: Your Pay Strategy is composed of a number of different things that you can choose to share: Who are you competing with for talent? If your philosophy is “we intend to meet the market” How is our market defined? We compete with SF tech companies? We compete with large SF tech companies? Are you rewarding performance, tenure, special skills or certifications? Is that something you would share with your workforce? I’ve worked with a number of clients who may be on the small side themselves but when it comes to pay they’re choosing to target larger markets. I always think that’s such a great message to share. If you’re doing something great like that why not tell your employees? “Hey we know we’re a 100 person company right now but we’re choosing to pay you as if we were a 1,000 person company.” What a great message!
- RUSTY · Have a plan · Give jobs a grade assignment · Range minimums and maximums · Increase process / cycle · Budget process / cycle
- SAME SPEAKER NOTES: PAYSCALE DID THIS STUDY—HERE IS WHAT WE LEARNED FROM THE STUDY: SLIDE: RUSTY - Summary results - detailed results - results of the market study for your job - results of the market study for you
- PAIGE SPEAKER NOTES: 1. Your employee knows his or her pay 2. Manager knows employee’s pay 3. Employee knows how his pay compares to the team/dept/org 4. Everyone knows everyone’s pay
- PAIGE
- PAIGE
- PAIGE SPEAKER NOTES: Managers may not / don’t know EE pay.
- PAIGE
- PAIGE
- PAIGE
- PAIGE
- PAIGE
- PAIGE SPEAKER NOTES: “Extreme transparency” Transparency of pay rates – the Buffer example - lots of noise - think about a cupboard with no doors – have to be extremely tidy
- RUSTY
- RUSTY
- RUSTY SPEAKER NOTES: So you decide you want to be more transparent or maybe just dip your toe in the water and see what one step towards being more transparent would look like. How do you do that?
- RUSTY · Explain what transparency is (and isn’t) · Link transparency with results that matter First thing you’ll want to do is gain your exec’s support. Like any time you’re communicating with your exec team, you’ll want to give them a short and concise explanation of what transparency is, why it matters, and then most importantly link it to some sort of results or business goals that matter to them. If you explain how higher transparency is linked to a lower intent to leave but they feel retention isn’t an issue at your workplace, then they may not be interested in what you have to say. If however they are concerned about employee engagement, use that to explain how moving towards transparency can help them succeed.
- RUSTY SPEAKER NOTES: Once you have support from your exec team, you’ll want to train your managers. It’s hard as a manager to buy-into something if you don’t understand the rationale behind it. The more you do understand, the easier it is to get behind it and really become a champion for that cause. We work with so many people who say “oh our managers can’t do that or won’t be able to handle that”. Don’t sell them short, expect more of them and then give them the resources. Part of those resources are the traiing. We think of communication that is automatic or a given but there are parts of communication that are so automatic that we don’t even realize we’re doing them and they can be detrimental. Good communication is a skill just like anything else you. You can train on it and get better at it with practice and help.
- RUSTY SPEAKER NOTES: Who do you have in your workforce, do they even want transparency? What kind of transparency do they want? Maybe you don’t have that many milenials yet. Maybe you have some more traditional functions who are happy to just be head down and working. Or maybe on the other hand you’ll have people who will be distracted by not knowing and it will be productive to share more. You’ll only know by knowing who’s in your organization.
- RUSTY
- Develop a plan (Re-do graph but lowercase “p” in philosophy and Third party study) SPEAKER NOTES: Once you’ve decided where you are and where you want to go, develop a plan to figure out how to get you there. For example (read through slide)
- PAIGE SPEAKER NOTES: think about a cupboard with no doors – have to be extremely tidy In a working kitchen, things aren’t always pretty, but they’re always functional Is your company ready for that? We’ll talk about getting you more transparent, if not there yet. Sometimes doors (or at least curtains) serve a purpose
- PAIGE
- RUSTY
- BambooHR & J2C