Webinar-5 Steps to Building a Modern Comp Plan

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A comprehensive compensation plan can guide your organization in its talent strategies, but a modern comp plan drives organizational success. Modern compensation planning is rooted in your company’s goals and uses pay as a lever to increase employee retention, engagement, and performance. Whether you’re creating a modern compensation plan for the first time or updating an existing one, these five steps will help you create a plan that sets your organization up for long-term success. Join PayScale’s Krystal Praast and Diane Schuman to learn how to create a modern comp plan from intention to implementation. Register for this webinar and you’ll learn about: -The importance of laying the groundwork for comp success -How to build market-based pay ranges -The path to successfully implementing your plan

Recruiting & HR

5 Steps to Building a
Modern
Compensation Plan
Diane Schuman
Customer Training Specialist
Krystal Praast
Compensational Professional II

www.payscale.com #CBPR17
54 Million Salary Profiles
250 Compensable Factors
15,000 Positions 6,000 Customers 2,300 Skills
Hi, We’re PayScale!
www.payscale.com/cbpr

www.payscale.com #CBPR17
Diane Schuman, CAPM
Customer Training Specialist
Krystal Praast, CCP
Compensation Professional II

www.payscale.com #CBPR17
What are the benefits of having a comp plan?
Fairness Communication Alignment

www.payscale.com #CBPR17
Elements of a Comp Plan
 Philosophy
 Strategy
 Guidelines (eg pay ranges)
 Policies
 Processes

www.payscale.com #CBPR17
have done a market study in the past
year. 25% in the past six months
have no compensation structure
(ranges, grades, etc)
have a compensation strategy. 34%
are developing one.
Source: PayScale’s 2017 CBPR

www.payscale.com #CBPR17
1. Lay the Groundwork

www.payscale.com #CBPR17
Gain Buy-in From Executives

www.payscale.com #CBPR17
Develop a Clear Compensation Philosophy
If You Believe Employees Are Your Most Valuable Asset…Pay Fairly
If You Have a Fast-Paced Organization…Examine Pay Frequently
If You Value Open Communication…Prove It
If You Give Your Managers Autonomy…Support Them

www.payscale.com #CBPR17
Start Getting Your Jobs in Order

www.payscale.com #CBPR17
2. Define Compensation
Strategy

www.payscale.com #CBPR17
Where Do You Compete For Talent?
Industry: IT Services
Size: 200 EEs
Location: Seattle, WA
One Talent Market Multiple Markets
Industry: IT Services
Size: 10,000 EEs
Location: Seattle, WA
Industry: IT Services
Size: 200 EEs
Location: Seattle, WA

www.payscale.com #CBPR17
What do you want to
reward?
How competitive do you
have to be?

www.payscale.com #CBPR17
3. Select Market Data
Source(s)

www.payscale.com #CBPR17
Comp Data Landscape for Employers
 Traditional surveys
 Industry surveys
 Data aggregators
 HRIS or internal data
 Government data
 Crowdsourced data
 “Scraped” data

www.payscale.com #CBPR17
Traditional and Industry Surveys
Source: http://www.rsna.org/NewsDetail.aspx?id=14256

www.payscale.com #CBPR17
Make sure it covers your data needs
Breadth
Precision
Age
Ease

www.payscale.com #CBPR17
4. Set Pay Guidelines

www.payscale.com #CBPR17
Pay Guidelines
Range MidpointMinimum Maximum
$20,000 $32,000
$26,000
Green-Circled Employees Red-Circled Employees

www.payscale.com #CBPR17
Pay Ranges vs. Pay Grades
Grade: Multiple ranges are
arranged mathematically, jobs
are assigned to grades
Range: A min, mid, and max
assigned to a job
MidMin Max
$20K $32K
$26K

www.payscale.com #CBPR17
Assign Jobs to Grades
Match market value with nearest midpoint
Adjust for internal alignment

www.payscale.com #CBPR17
Determine the Shape of Your Structure

www.payscale.com #CBPR17
5. Implement the Plan

www.payscale.com #CBPR17
The PayScale Pay Transparency Spectrum

www.payscale.com #CBPR17
Develop Policies & Processes
Processes:
 Adding or evaluating a job
 Market Study
 Budget
 Increase cycle
 New hire process (pay)
 Promotion process
Policies:
 Increases
 New Hire
 Promotion
 Outliers
 Eligibility

www.payscale.com #CBPR17
Immediate Actions
• Clarify business goals and priorities to align comp
• Identify culture aspects to amplify with comp
• Start tracking where you recruit from or lose people to
• Familiarizing yourself with data sources that cover your needs
• Build pay ranges for your top 10 jobs

You will get from Compference:
Product Sessions
Customer Presentations
Peer Networking
Breakout Sessions
Phenomenal Speakers
PHR/SPHR recertification credit
Ask about a discount code!

Comptopia: A PayScale Community
CONNECT with more than 700 like-minded compensation and
HR professionals
PARTICIPATE in an active discussions forum covering everything
from comp plans to current events
LEARN best practices and product tips from power users and
PayScale experts alike
EARN perks, points, and exclusive swag available only to
Comptopians
JOIN today—ask me for a link to sign up

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Webinar-5 Steps to Building a Modern Comp Plan

1. 5 Steps to Building a Modern Compensation Plan Diane Schuman Customer Training Specialist Krystal Praast Compensational Professional II

2. www.payscale.com #CBPR17 54 Million Salary Profiles 250 Compensable Factors 15,000 Positions 6,000 Customers 2,300 Skills Hi, We’re PayScale! www.payscale.com/cbpr

3. www.payscale.com #CBPR17 Diane Schuman, CAPM Customer Training Specialist Krystal Praast, CCP Compensation Professional II

4. www.payscale.com #CBPR17 What are the benefits of having a comp plan? Fairness Communication Alignment

5. www.payscale.com #CBPR17 Elements of a Comp Plan  Philosophy  Strategy  Guidelines (eg pay ranges)  Policies  Processes

6. www.payscale.com #CBPR17 have done a market study in the past year. 25% in the past six months have no compensation structure (ranges, grades, etc) have a compensation strategy. 34% are developing one. Source: PayScale’s 2017 CBPR

7. www.payscale.com #CBPR17 1. Lay the Groundwork

8. www.payscale.com #CBPR17 Gain Buy-in From Executives

9. www.payscale.com #CBPR17 Develop a Clear Compensation Philosophy If You Believe Employees Are Your Most Valuable Asset…Pay Fairly If You Have a Fast-Paced Organization…Examine Pay Frequently If You Value Open Communication…Prove It If You Give Your Managers Autonomy…Support Them

10. www.payscale.com #CBPR17 Start Getting Your Jobs in Order

11. www.payscale.com #CBPR17 2. Define Compensation Strategy

12. www.payscale.com #CBPR17 Where Do You Compete For Talent? Industry: IT Services Size: 200 EEs Location: Seattle, WA One Talent Market Multiple Markets Industry: IT Services Size: 10,000 EEs Location: Seattle, WA Industry: IT Services Size: 200 EEs Location: Seattle, WA

13. www.payscale.com #CBPR17 What do you want to reward? How competitive do you have to be?

14. www.payscale.com #CBPR17 3. Select Market Data Source(s)

15. www.payscale.com #CBPR17 Comp Data Landscape for Employers  Traditional surveys  Industry surveys  Data aggregators  HRIS or internal data  Government data  Crowdsourced data  “Scraped” data

16. www.payscale.com #CBPR17 Traditional and Industry Surveys Source: http://www.rsna.org/NewsDetail.aspx?id=14256

17. www.payscale.com #CBPR17 Crowdsourced

18. www.payscale.com #CBPR17 Make sure it covers your data needs Breadth Precision Age Ease

19. www.payscale.com #CBPR17 4. Set Pay Guidelines

20. www.payscale.com #CBPR17 Pay Guidelines Range MidpointMinimum Maximum $20,000 $32,000 $26,000 Green-Circled Employees Red-Circled Employees

21. www.payscale.com #CBPR17 Pay Ranges vs. Pay Grades Grade: Multiple ranges are arranged mathematically, jobs are assigned to grades Range: A min, mid, and max assigned to a job MidMin Max $20K $32K $26K

22. www.payscale.com #CBPR17 Assign Jobs to Grades Match market value with nearest midpoint Adjust for internal alignment

23. www.payscale.com #CBPR17 Determine the Shape of Your Structure

24. www.payscale.com #CBPR17 5. Implement the Plan

25. www.payscale.com #CBPR17 The PayScale Pay Transparency Spectrum

26. www.payscale.com #CBPR17 Develop Policies & Processes Processes:  Adding or evaluating a job  Market Study  Budget  Increase cycle  New hire process (pay)  Promotion process Policies:  Increases  New Hire  Promotion  Outliers  Eligibility

27. www.payscale.com #CBPR17 Immediate Actions • Clarify business goals and priorities to align comp • Identify culture aspects to amplify with comp • Start tracking where you recruit from or lose people to • Familiarizing yourself with data sources that cover your needs • Build pay ranges for your top 10 jobs

28.

29. You will get from Compference: Product Sessions Customer Presentations Peer Networking Breakout Sessions Phenomenal Speakers PHR/SPHR recertification credit Ask about a discount code!

30. Comptopia: A PayScale Community CONNECT with more than 700 like-minded compensation and HR professionals PARTICIPATE in an active discussions forum covering everything from comp plans to current events LEARN best practices and product tips from power users and PayScale experts alike EARN perks, points, and exclusive swag available only to Comptopians JOIN today—ask me for a link to sign up

31. www.payscale.com #CBPR17 Questions?

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