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Strategies for Managing a Diverse Workforce

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PayScale, Inc.
PayScale, Inc.

In an ever increasingly global economy, the ability to manage a diverse workforce is a key competitive advantage. However, today’s HR teams are challenged when it comes to figuring out compensation strategies for a diverse workforce. Join Crystal Spraggins, SPHR and Mykkah Herner, MA, CCP as they talk about the intersections between diversity and compensation: Alternative ways of looking at diversity Identifying pay inequities Training managers well beyond compliance Diversity and the salary negotiation process Diversity beyond compensation such as practicing inclusion in hiring, training and development

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Strategies for Managing a Diverse Workforce Crystal Spraggins, SPHR Workplace Consultant Mykkah Herner, MA, CCP Director of ISX Services PayScale, Inc. www.payscale.com
www.payscale.com 14,000 Positions 3000 Customers 11 Countries 250 Compensable Factors 40 Million Salary Profiles
www.payscale.com Agenda Defining the Issues What is Diversity Diversity and compensation Ensuring Fair Pay Addressing manager favoritism A note about negotiation Diversity beyond compensation Diversity vs Inclusion Employee Relations Training & Development Immediate Actions
www.payscale.com Defining the Issues
www.payscale.com Why Are We Talking about Diversity? Who needs to hear about diversity in 2015? Haven’t we “been there/done that” already?
www.payscale.com Defining the Issues Diversity presents challenges. Bias is a universal human trait, and each of us is limited by our own perceptions and life experiences. In the workplace, our bias both FOR and AGAINST certain differences can create trying situations. Like most other aspects of your business, diversity must be managed to realize the benefits and avoid the pitfalls.
www.payscale.com What Do We Mean By “Diversity”? When we talk about diversity in the 21st century, we’re covering a wide range of differences: • Protected classes under Title VII and amendments • Protected classes under other federal laws • Protected classes under state and local law • Anything we identify as “other.” • Generation • Personality/Style (e.g., Scrappy vs Country Club, Introvert vs. Extrovert) • Socioeconomic Status/Class
www.payscale.com The Workforce Is Becoming Larger and More Diverse • According to the DOL, the workforce is becoming both larger and more diverse. • In 1995, the U.S. was estimated to be 83 percent white; 13 percent black, 10 percent Hispanic; 1 percent American Indian, Eskimo, and Aleut; and 4 percent Asian and Pacific Islander (Bureau of the Census). • In 2050, those numbers are estimated to be 53 percent white; 25 percent Hispanic; 14 percent black; 8 percent Asian and Pacific Islander; and 0.9 percent American Indian (Bureau of the Census).
www.payscale.com But even if the workforce isn’t becoming more diverse … our customers certainly are.
www.payscale.com Bias and Workplace “Currency” Types of workplace currency • Cash • Work assignments • Development opportunities • Promotions • Perks (e.g., working from home) • Favor Currency greases all the workplace wheels
www.payscale.com Diversity and Compensation
www.payscale.com To ensure fair pay: • Develop a plan (philosophy, strategy, structure, policies/guidelines, and processes) • Identify and resolve biases in compensation Ensuring Fair Pay
www.payscale.com Develop Your Plan Philosophy – What are we trying to accomplish? Strategy – How can we carry out the philosophy? Structure – Pay grades and ranges support the strategy. Guidelines – Keep us aligned with our overall aims for compensation. Processes – Give step-by-step instructions.
www.payscale.com Identifying and Resolving Inequities • Evaluate your Comp Plan Annually* o Current Pay Structure – Range Adjustments o Hot jobs – Market Adjustments o Employee concerns – Equity Adjustments
www.payscale.com Equity Pay Self Audits – Pros and Cons • An internal equity pay audit is an excellent way for a company to determine whether pay inequities exist and if so to correct those inequities on the company’s own terms and in its own time. • Conduct pay audits with the assistance of a qualified attorney, and be prepared to act on whatever you find.
www.payscale.com Hirable Like Me • Lauren Rivera of the Kellogg School of Management decided to study hiring practices because she considers hiring “one of those critical gate-keeping moments whereby the judgments we make about people have enduring effects.” • In a 2-year period, Rivera conducted 120 interviews with hiring professionals at elite firms, 40 each from the fields of banking, consulting, and Big Law. Her big takeaway? Similarity matters.
www.payscale.com Manager Favoritism Favoritism affects: • Hiring • Pay increases • Promotions • Training and Development opportunities • Work assignments/projects
www.payscale.com A Note on Negotiation • Numerous studies have found that women are much less comfortable and much less likely to negotiate pay than men. • However, the law does not recognize “superior negotiating skills” as a valid explanation for pay inequities. You shouldn’t either.
www.payscale.com Diversity beyond Compensation
www.payscale.com Diversity without inclusion is a lose-lose proposition that negatively impacts both ENGAGEMENT and RETENTION. Diversity vs. Inclusion
www.payscale.com Employee Relations • Employee relations issues will intensify and magnify when conflict surrounding differences go unaddressed. • To mitigate sticky employee relations issues, develop clear antidiscrimination policies and enforce them consistently and fairly; promptly investigate complaints; and learn the art of de-escalation.
www.payscale.com Training and Development • PayScale’s 2015 Compensation Best Practices Report found that 18 percent of workers left their jobs last year in search of advancement opportunities and that 60 percent of employers expect to offer development opportunities as a means of retaining employees. • In other words, training and development is valuable workplace currency that should be treated with care.
www.payscale.com Immediate Actions  Examine your workforce – who works at your organization? What types of diversity do you already celebrate? Where is there room for improvement?  Assess your managers’ skillsets – do they have the capacity to effectively create an inclusive environment?  Review your comp plan – is it set up in a way to minimize or eliminate discrimination concerns?  Explore the forms of workplace “currency” in place at your organization – are they set up for success?
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 Crystal Spraggins, SPHR Workplace Consultant Mykkah Herner, MA, CCP Director of ISX Services www.payscale.com

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Strategies for Managing a Diverse Workforce

  • 1. Strategies for Managing a Diverse Workforce Crystal Spraggins, SPHR Workplace Consultant Mykkah Herner, MA, CCP Director of ISX Services PayScale, Inc. www.payscale.com
  • 2. www.payscale.com 14,000 Positions 3000 Customers 11 Countries 250 Compensable Factors 40 Million Salary Profiles
  • 3. www.payscale.com Agenda Defining the Issues What is Diversity Diversity and compensation Ensuring Fair Pay Addressing manager favoritism A note about negotiation Diversity beyond compensation Diversity vs Inclusion Employee Relations Training & Development Immediate Actions
  • 5. www.payscale.com Why Are We Talking about Diversity? Who needs to hear about diversity in 2015? Haven’t we “been there/done that” already?
  • 6. www.payscale.com Defining the Issues Diversity presents challenges. Bias is a universal human trait, and each of us is limited by our own perceptions and life experiences. In the workplace, our bias both FOR and AGAINST certain differences can create trying situations. Like most other aspects of your business, diversity must be managed to realize the benefits and avoid the pitfalls.
  • 7. www.payscale.com What Do We Mean By “Diversity”? When we talk about diversity in the 21st century, we’re covering a wide range of differences: • Protected classes under Title VII and amendments • Protected classes under other federal laws • Protected classes under state and local law • Anything we identify as “other.” • Generation • Personality/Style (e.g., Scrappy vs Country Club, Introvert vs. Extrovert) • Socioeconomic Status/Class
  • 8. www.payscale.com The Workforce Is Becoming Larger and More Diverse • According to the DOL, the workforce is becoming both larger and more diverse. • In 1995, the U.S. was estimated to be 83 percent white; 13 percent black, 10 percent Hispanic; 1 percent American Indian, Eskimo, and Aleut; and 4 percent Asian and Pacific Islander (Bureau of the Census). • In 2050, those numbers are estimated to be 53 percent white; 25 percent Hispanic; 14 percent black; 8 percent Asian and Pacific Islander; and 0.9 percent American Indian (Bureau of the Census).
  • 9. www.payscale.com But even if the workforce isn’t becoming more diverse … our customers certainly are.
  • 10. www.payscale.com Bias and Workplace “Currency” Types of workplace currency • Cash • Work assignments • Development opportunities • Promotions • Perks (e.g., working from home) • Favor Currency greases all the workplace wheels
  • 12. www.payscale.com To ensure fair pay: • Develop a plan (philosophy, strategy, structure, policies/guidelines, and processes) • Identify and resolve biases in compensation Ensuring Fair Pay
  • 13. www.payscale.com Develop Your Plan Philosophy – What are we trying to accomplish? Strategy – How can we carry out the philosophy? Structure – Pay grades and ranges support the strategy. Guidelines – Keep us aligned with our overall aims for compensation. Processes – Give step-by-step instructions.
  • 14. www.payscale.com Identifying and Resolving Inequities • Evaluate your Comp Plan Annually* o Current Pay Structure – Range Adjustments o Hot jobs – Market Adjustments o Employee concerns – Equity Adjustments
  • 15. www.payscale.com Equity Pay Self Audits – Pros and Cons • An internal equity pay audit is an excellent way for a company to determine whether pay inequities exist and if so to correct those inequities on the company’s own terms and in its own time. • Conduct pay audits with the assistance of a qualified attorney, and be prepared to act on whatever you find.
  • 16. www.payscale.com Hirable Like Me • Lauren Rivera of the Kellogg School of Management decided to study hiring practices because she considers hiring “one of those critical gate-keeping moments whereby the judgments we make about people have enduring effects.” • In a 2-year period, Rivera conducted 120 interviews with hiring professionals at elite firms, 40 each from the fields of banking, consulting, and Big Law. Her big takeaway? Similarity matters.
  • 17. www.payscale.com Manager Favoritism Favoritism affects: • Hiring • Pay increases • Promotions • Training and Development opportunities • Work assignments/projects
  • 18. www.payscale.com A Note on Negotiation • Numerous studies have found that women are much less comfortable and much less likely to negotiate pay than men. • However, the law does not recognize “superior negotiating skills” as a valid explanation for pay inequities. You shouldn’t either.
  • 20. www.payscale.com Diversity without inclusion is a lose-lose proposition that negatively impacts both ENGAGEMENT and RETENTION. Diversity vs. Inclusion
  • 21. www.payscale.com Employee Relations • Employee relations issues will intensify and magnify when conflict surrounding differences go unaddressed. • To mitigate sticky employee relations issues, develop clear antidiscrimination policies and enforce them consistently and fairly; promptly investigate complaints; and learn the art of de-escalation.
  • 22. www.payscale.com Training and Development • PayScale’s 2015 Compensation Best Practices Report found that 18 percent of workers left their jobs last year in search of advancement opportunities and that 60 percent of employers expect to offer development opportunities as a means of retaining employees. • In other words, training and development is valuable workplace currency that should be treated with care.
  • 23. www.payscale.com Immediate Actions  Examine your workforce – who works at your organization? What types of diversity do you already celebrate? Where is there room for improvement?  Assess your managers’ skillsets – do they have the capacity to effectively create an inclusive environment?  Review your comp plan – is it set up in a way to minimize or eliminate discrimination concerns?  Explore the forms of workplace “currency” in place at your organization – are they set up for success?
  • 24.
  • 25. 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 Crystal Spraggins, SPHR Workplace Consultant Mykkah Herner, MA, CCP Director of ISX Services www.payscale.com

Notes de l'éditeur

  1. Hedge
  2. 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.  
  3. Mykkah
  4. Crystal TIME: ~ 5 min
  5. Crystal The workforce is becoming more diverse, but we are not becoming any less human. Our “stuff” informs all our relationships, including out work relationships.
  6. Crystal BIAS equals prejudice, but not necessarily racial, ethnic, sex, etc prejudice. Rather, when we talk about bias today, we mean the tendency to have a PRE-CONCEIVED idea about something or someone. Also – diversity becomes both a morale and legal issue when it comes to compensation Mykkah: Just read that “diversity is a hallmark of innovation.” How true! I’ll find some way to slip that in. Mykkah: “Teachers Unconsciously Put Girls Off Math and Science, Study Finds” http://www.spring.org.uk/2015/03/teachers-unconsciously-put-girls-off-math-and-science-study-finds.php
  7. Crystal
  8. Crystal
  9. Crystal
  10. Crystal
  11. Mykkah TIME: ~ 15-20 min Ensure Fair Pay Resolve Manager Bias Negotiations
  12. Mykkah
  13. Mykkah Philosophy High-level view on the aims of the organization with regard to compensation Strategy Define your talent market(s) Determine level of competitiveness What do you want to reward? Structure Mathematically sound way of aligning your positions to market and internally Guidelines Ensures that the comp plan is carried out
  14. Mykkah Ways to identify and resolve inequities: - informally address via evaluating *full* comp plan annually. - formally – do an equity audit In either case – if you identify something, *be prepared to act* Once something is in writing… and email is a written record…
  15. Crystal
  16. Crystal
  17. Mykkah
  18. Mykkah
  19. Crystal TIME: ~ 30-35 min
  20. Crystal
  21. Crystal – or Mykkah
  22. Crystal – or Mykkah
  23. Mykkah TIME: ~40-50 min Quiz: What actions have you taken to encourage and protect diversity at your organization? - developed a compensation plan - audited pay practices - delivered training for managers on diversity and inclusion - addressed issues in the moment - something else?