HR functions have evolved from the personnel departments of the 70’s and 80’s to the business partnerships and people functions of today. The strategic value that HR brings to an organization can vary greatly depending on the size of the organization, industry, location, core values, culture, and more.
Join PayScale’s Stacey Klimek, VP of People, and Mykkah Herner, Director of Professional Services, as they discuss tips for creating a highly functional HR department in your organization.
3. www.payscale.com
Agenda
• The Evolving HR Function
• Driving Business Results
• Gaining Executive Support
• Understanding Your Workforce
• Is it HR’s responsibility?
• Immediate Actions
14. Socialize your plan
Educate as you go, focusing on
• Impact of strong comp plan on business results
• Market study & results
• Compensation philosophy
• Compensation strategy
• Guidelines for pay (structure)
• Policies & Processes
15. Pay Ranges or Guidelines
Range MidpointMinimum Maximum
$20,000 $32,000
$26,000
Range
Midpoint:
Range
Minimum:
Range
Maximum:
Lower limit of
pay range
Proficiency point,
aligned to market
Upper limit of
pay range
16. Maintain buy-in by reporting
High Level Info
o Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc)
o Report these on a regular basis
18. Make-up of your workforce
Workforce Characteristics
• Generations
• Professional, mid, or entry level
• Manual, Technical, Office, Leadership workers
Organizational Characteristics
• Urban vs Rural
• Corporate or non-profit
• More hierarchical or flat
• Traditional or newer industry
• Driver: Values, Profit, Growth
19. Identify Creative Solutions
Consider Workplace “Currency”
Know what motivates your employees
Additional/Alternative Perks
FTE preference
Staggered increase or offer
PTO
Work assignments
Development opportunities
19
21. of company leaders do not feel confident in their
managers’ ability to effectively communicate with
employees about salary issues.
2014 PayScale CBPR
73%
25. What competencies do you need?
• Strategic Communication
• Organizational Development
• Change Management
• Data & Analytics
• Business Savvy
• Creativity
26. Immediate Actions
• Evaluate your HR function
• Understand your desired business outcomes
• Assess your workforce for makeup, skills, gaps
• Start talking with your executives
• Identify key champions amongst your managers
27. PayScale Delivers Where Other Compensation Providers Fall Short
PayScale leads the world in compensation knowledge with the freshest and
most detailed data from over 40 million salary profiles. More than 3000
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
Stacey Klimek
VP of People
Mykkah Herner, MA, CCP
Director of Professional Services
www.payscale.com
Notes de l'éditeur
Hedge
Hedge
Creator of the largest database of individual compensation profiles in the world, PayScale, Inc. provides an immediate and precise snapshot of current market salaries to employees and employers through its online tools and software.
PayScale’s products are powered by innovative search and query algorithms that dynamically acquire, analyze and aggregate compensation information for millions of individuals in real time.
Publisher of the quarterly PayScale IndexTM, PayScale's subscription software products for employers include PayScale MarketRateTM and PayScale InsightTM. Among PayScale's 2,500 corporate customers are organizations small and large across industries including Mozilla, Tully’s Coffee, Clemson University and the United States Postal Service.
HR functions have evolved from the personnel departments of the 70’s and 80’s to the business partnerships and people functions of today. The strategic value that HR brings to an organization can vary greatly depending on the size of the organization, industry, location, core values, culture, and more.
Join PayScale’s Stacey Klimek, VP of People, and Mykkah Herner, Director of Professional Services, as they discuss tips for creating a highly functional HR department in your organization.
Attend this webinar and learn:
How to drive business results and gain executive support for HR initiatives
What do they want? Understanding your workforce and tailoring programs for success
What falls under the HR umbrella in a highly functional HR department
Mykkah
Changing names – evolving function.
Distancing from “HR” as a name – helpful?
Transactional to Strategic
Examples within each
Recent webinar – props to BambooHR
Goal of HR = focus on Outcomes, and build the spokes of the wheel that ultimately drive bus results.
Note: Comp isn’t a spoke, it feeds in to many of these spokes like EE engagement, Performance, Retention, Efficiency, etc…
Digging into how we at PayScale think about Comp: it’s a keystone. Directly related to some org systems, indirectly related to others.
Withstand external pressures. Sound structure, etc.
Stacey
Communicating with executives involves
Understanding the executive audience: Put yourself in the shoes of your executives.
Making sure compensation is aligned with business objectives: Present yourself as someone who understands the business.
Incorporating leading edge practices: Your execs need you to keep them abreast of the best of the “best practices.”
Keeping executives up to date with quick “snapshots:” Keep the details to a minimum, please.
Understand the Executive AudienceYour executives got to where they are by learning how to get what theywant, so before approaching them you better get your ducks in a row if youhope to get want YOU want. Understand that executives:• Don’t want to be told what to do: Does anyone?• Can be distrustful of change: Change? Yeck! More hoops, more work,and more $$$.• Are used to making decisions: Do your homework to provide severaloptions, then ask for input. It’ll make your execs feel special!• Know they know stuff Avoid coming of as a “know it all” yourself.Ask the Right QuestionsThe RIGHT compensation policy starts with asking your executives theRIGHT questions. (We’ve provided a few right questions to get you started.Aren’t we the best?)Question: Why do you want to have a good comp program?Answer: To pay people RIGHT.Question: Why do you want to pay people right?Answer: To attract and retain top talent.Question: Why do you want top talent?Answer: To accomplish our business objectives.
• Regularly REPORT OUT how the plan is performing. Your information should be high level (avoidtoo many details) and relevant. Hint: PayScale makes this easy with multiple dashboards.• Give them TOOLS FOR SUCCESS (e.g., reports with relevant information).• Give them INSIGHT into what employees care about.• Give them TALKING POINTS for conversation with employees.
Communicating with executives involves
Understanding the executive audience: Put yourself in the shoes of your executives.
Making sure compensation is aligned with business objectives: Present yourself as someone who understands the business.
Incorporating leading edge practices: Your execs need you to keep them abreast of the best of the “best practices.”
Keeping executives up to date with quick “snapshots:” Keep the details to a minimum, please.
Understand the Executive AudienceYour executives got to where they are by learning how to get what theywant, so before approaching them you better get your ducks in a row if youhope to get want YOU want. Understand that executives:• Don’t want to be told what to do: Does anyone?• Can be distrustful of change: Change? Yeck! More hoops, more work,and more $$$.• Are used to making decisions: Do your homework to provide severaloptions, then ask for input. It’ll make your execs feel special!• Know they know stuff Avoid coming of as a “know it all” yourself.Ask the Right QuestionsThe RIGHT compensation policy starts with asking your executives theRIGHT questions. (We’ve provided a few right questions to get you started.Aren’t we the best?)Question: Why do you want to have a good comp program?Answer: To pay people RIGHT.Question: Why do you want to pay people right?Answer: To attract and retain top talent.Question: Why do you want top talent?Answer: To accomplish our business objectives.
• Regularly REPORT OUT how the plan is performing. Your information should be high level (avoidtoo many details) and relevant. Hint: PayScale makes this easy with multiple dashboards.• Give them TOOLS FOR SUCCESS (e.g., reports with relevant information).• Give them INSIGHT into what employees care about.• Give them TALKING POINTS for conversation with employees.
Alignment
Validates compensation strategy and aligns to business goals & results
Fairness
Clarifies the market and internal value for each job, and provides a way to manage employee pay effectively
Ensures pay equity (legally defensible)
Provides room to reward your employees based on performance, experience, etc.
Communication
Provides a tool to talk with employees about development
Confidence
Quantifies compensation costs & enables budget decisions
Determines pay for non-benchmark jobs
Gives HR, managers, and employees confidence that pay decisions are fact-based
Min: Lower limit of a pay range/band. Pay for new or less proficient employees should be closer to minimum.
Mid: Identifies the proficiency point. Market based ranges have a midpoint that aligns with the target percentile in the market.
Max: The upper limit of a pay range/band. Pay for more tenured employees or star performers should be approaching this number.
Along with other dashboards & “health of the organization” information, they should have the pulse of comp – org/wide – high level. 20K feet. Etc.
- questions to ask about the makeup of your wf & how that impacts your HR decisions
- Generations & how large –
- Urban vs Rural
- Professional vs entry level vs ?
- manual vs office?
- Tech, non-tech, leadership
- Flat vs hierarchical
- potential skills gap
- Identifying talent & creating development opportunities – succession planning & leadership training / coaching
-
Mykkah
Make-up
Some hints of what it might mean and how that may link to other HR initiatives. What’s the challenge?
Mykkah
Some other workforce thoughts … depending who you have, you may need to get creative.