How to Communicate Comp to Executives and Managers

Paige Hanley, CCPSr. Compensation Professional

Mykkah Herner, MA, CCPDirector of Professional Services

www.payscale.com

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14,000 Positions 3000 Customers 11 Countries

250 Compensable Factors41 Million Salary Profiles

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AgendaA Note on Transparency and Communication

Communicating with Executives• Understand the executive audience• Prepare talking points• Provide helpful reporting

Communicating with Managers• Set expectations• Train managers in compensation and communication• Provide helpful reporting

Immediate Action

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Market Study and Processes

known

Transparency Spectrum

Pay Transparency

Trust

Better Business Outcomes!

Engagement

Why Would Anybody be More Transparent about Pay?

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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

Intent to leave

Satisfaction

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Communication Roles

Executives• Communicate program to organization at a high level

Managers• Communicate compensation details to employees

Employees• Bring questions to manager or

HR

HR• Prepare communication, consult and inform Executives, train Managers

Talking about pay isn’t always fun

Communication Tips

KNOW YOUR AUDIENCE

WATCH THE JARGON

DON’T PRESENT ISSUES WITHOUT A

WAY FORWARD

PREPARE, PREPARE, PREPARE

BE DIRECT AND ALSO EMPATHETIC

COMMUNICATE EARLY & OFTEN

9

Communicating with Executives

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• Understand the executive audience

• Align compensation with business objectives

• Incorporate leading edge practices

• Keep executives up to date

Exec communication tips

What do your executives care about?

Benefits of Comp Plans

13

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Key Messages to Executives while Developing your Plan

Strategy

Introduction to Project

Manager Training Messaging

Policies & Guidelines

Results & Approval

Prepare Talking Points• Compensation philosophy & purpose• Compensation plan changes at the highest level• Market study & results• Next steps – talk with managers

Report High Level Info

o Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc)o Report these on a regular basis

Communicating with Managers

17

of company leaders do not feel confident in their managers’

ability to effectively communicate with employees

about salary issues.

2014 PayScale CBPR

73%

AGENTS OF THE ORGANIZATION

EQUIP MANAGERS

Set expectations

Educate them

Give them the big

picture

Give them tools

Negotiation Skills

• Sell the organization and 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

Listening Skills

23

Identify Creative SolutionsConsider Workplace “Currency”

Know what motivates your employees Additional/Alternative Perks FTE preference Staggered increase or offer PTO Work assignments Development opportunities

The compensation review meeting

1. Prepare for the meeting

2. Deliver feedback and listen

3. Follow up

Provide Talking Points

• Compensation Philosophy

• Market Study / results

• Structure Overview

• Position in range

• Adjustment

• Rationale

• Open the door

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 lowo Pay is higho No increase due to performanceo “I found this on the internet”

Train ManagersCompensation Plan Overview

• Compensation 101

• Compensation Plan Infoo Philosophyo Strategyo Structureo Policieso Processes

Putting comp into practice

• Linking Performance to Pay

• Calculating Increases

• Talking with Employees

Report Relevant Info

Give them tools for success:

o Flight Risk report & the inverse report

o Disparate Pay report

Give them insight into what employees care about

o Am I making enough money to cover my basic needs (entry level)

o Am I being paid fairly (professional level)

o Am I being paid enough to deal with managing people (Mgrs/Dirs)

Give them talking points for comp conversations with employees

Immediate Actions • Evaluate your comp plan to the market

• Determine ways to increase transparency within your organization

• Offer communication training for executives, managers, and employees

• Prepare high level messages about compensation

• Prep toolkits for your managers to use when communicating with employees

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Visit our blog: www.payscale.com/compensation-todayJoin our Group on LinkedIn: Compensation Today: HR Best Practices

Mykkah Herner, MA, CCPDirector of Professional Services

Paige Hanley, CCPSr. Compensation Professional

www.payscale.com