Selling the C-Suite on your Compensation Plan

Selling Your C-Suite on Your Compensation Plans

©2016 Performensation

Secrets to Securing Executive Buy-in

High Level Topics

©2016 Performensation 2

1. Building Your Reputation

2. Developing Relationships

3. Organizing Your Approach

4. Communicating with your: CEO CFO CHRO

Build Your Reputation


Build Your Reputation

In her article, “Brand Yourself” Dorie Clark points out the basics:1) Discover how you're currently perceived2) Get clear on how you’d like to be seen, and3) Live out your brand

Create your Service Delivery Model1) Who is in your Circle of Influence

• Who are the Stakeholders?• Who could benefit from your services that is currently not a client

2) Determine how you deliver your products and services

Developing Relationships


Gain the respect of your Stakeholders

Approach:Ensure they are the right person to talk to. • Can someone else take the meeting? • Be clear about topic, and • What you are looking for from them

Propose a brief meeting (15 min)

Do your homework and understand their background

Don’t be too chatty or too silent

Do be confident and enthusiastic

To be influential to the C-Suite , you first need

to influence the influencers!

Organize and Communicate


Don’t start in the weeds …organize a strategic approach

Establish Guiding Principles that are aligned with the Strategic Objectives

Such as:• Focus on hiring the top tier of

Engineers, or• Develop and Retain our Rising

Stars!

Approach


Diagnose | Design | Execute | Adapt

Start Here

Diagnose the Issue and Design Your Approach


Stop selling Compensation from your professional point of view

– Select data sources

– Create Salary Structures

– Determine our market position

– Identify critical or “hot” positions








This should be your foundationNOT

YOURAPPROACH



START HERE INSTEAD– How do employees perceive your compensation programs?

– What are your programs and pay levels designed to do?

– What evidence do you have that the plans are, or are not, working?

– What are the MOST: 1. easiest changes? 2. impactful changes? 3. cost effective changes? 4. fastest changes?

– What will you get from each potential change?

Diagnose – Strategic Approach


12 Pillars Analysis

Interview key stakeholders in your business to provide a detailed evaluation of factors that impact your company's ability to attract, retain and reward talent.

Total Reward Radar Analysis

Provide and assessment of the Current State versus the Ideal State.

The analysis shows the potential of the company’s current talent programs.

Holes are discussed, prioritized and corrected.

Ideal State

Diagnose – Support with Details


Benchmark Analysis

Where is our pay compared to our competitors for talent?

(livingwage.mit.edu)

We Need to Give Raises Now!

Turnover Analysis

Are we loosing people? If so, why?

Prioritize Approach?

Mission Critical, Support, Executive and Hot Jobs

Employee Opinion Survey

What are our people saying?

Other Sources

(bls.gov)

Pay Budget Survey

BLR, WorldatWork and Many Others

Present Your Solution


At the:Right Time

Right Place, and the

Right People

Lets discuss communication factors for different types of Executives

What does the CEO Wish You Knew?


I want every department in

the company to be a profit

center.



Anticipate Questions…

have

answers

and

alternatives

THINK ahead



EXCEED expectations

To be invited back



1. Start with something I don’t know and summarize it to a level that allows me to either make a decision or ask critical questions. Have the details at the ready, but don’t insist that I see them.

2. Give me solutions, not suggestions or problems. If it takes you a few extra days to turn your idea into a working prototype that proves its capabilities, please let me know in advance and we will meet in a few days.

3. Please know our business and be able to speak to me in terms I use on a regular basis. I don’t want to learn your “language” of HR and compensation. Listen in on investor conference calls and read any memo you can get your hands on. Please learn my language of success.

4. Don’t make assumptions about our business strategy. We explain it pretty darned well in our Proxy Statement. I secretly wish you had already read and understood our entire 10K and those of our most important peers.

5. Explain EVERYTHING from the perspective of how it helps our business become more successful. It’s great if something is new, or trendy, or if you want to make employees happier, but all of that is useless if we aren’t growing and winning.

6. PREPARE. There is a great quote from Woodrow Wilson that reads: “If I am to speak ten minutes, I need a week of preparation; if fifteen minutes, three days; if half and hour, two days; if an hour, I am ready now.” Which did you prepare for?

7. Please try and tell me everything from my perspective, not yours. I know this can be tough but, trust me, it is probably harder for me to see the world through your eyes (unprepared) than vice versa.

What does the CFO Wish You Knew?


I understand the strategic

importance of talent but

remember… I am a numbers

person.



CFO’s are often masters at negotiation!

Remember these negotiation basics:

1) Always argue your point from the other guy’s side of the table. And,

2) In a great negotiation everyone leaves just a bit unhappy.



CFO’s are often the easiest people to work with on compensation projects.

They understand numbers …like us

They talk about money every day …like us

They must directly link every budget decision to the growth and success of the company

…like we should

Heck, they even enjoy being compensated

…like most of us!



1. Please remember that I am a numbers person. Don’t give me vague estimates or guesses. I can probably do the math in my head, so please give me real numbers.

2. Don’t oversell me on huge gains. We have a specific projected growth rate to achieve. If your ideas are inline with that, then you will have my attention.

3. When presenting, show me charts and graphs that make sense (use our proxy and other financial reports) as guides. Pretty is less important than informative.

4. If you give me charts and summaries, back it up with full data sets. I may never look at them, but they make me feel more comfortable.

5. Understand the impact of your ideas and recommendations on the finances of the company. If you don’t know, or are unsure, ask me to explain before you try and sell your latest solution.

6. When you model the expense for awards and payouts, (especially performance-based and equity-based), please use assumptions that are applicable our company. Again, if you’re not sure, please ask before you go hog-wild with your projections.

7. We have the same goals. I know it sometimes seems like I am not hearing you, but I will support any idea that makes more money than it costs. Communication projects? No problem, show me the ROI. Pay for Performance? Sounds great, but you’ll need to prove that it will work in alignment with are budgets and business strategy. In today’s uncertain market, please be ready to discuss risk -- both upside and downside. More headcount? I’m on-board if you can help figure out where the money will come from.

What does the CHRO Wish You Knew?


I must consider the needs of both internal and external stakeholders.

While today’s issue may be a single important individual with a compensation concern,…

tomorrow’s issue may be dealing with getting a multi-year equity plan approval from the board or shareholders.



I must consider the needs of both internal and external stakeholders.

While today’s issue may be a single important individual with a compensation concern,…

tomorrow’s issue may be dealing with getting a multi-year equity plan approval from the board or shareholders.



I am responsible for some of the largest budgets at the company.

I fight hard to obtain budgets to suit our talent needs…

I need you to make sure you optimize what ever you get!



1. Please be very aware of how much I do, or do not, know about Compensation. If this is not an area of expertise for me, make sure that I can sound like it is.

2. I know how important compensation is. Stop selling me on “why” pay is important and start selling me on why your idea is the correct one to improve the issue at hand.

3. Understand the interaction of ALL of our total reward programs and objectives. Communicate regularly with your C&B peers.

4. Make sure that I know any biases, or assumptions that have been made in creating the data that I must support and defend. I don’t want to be surprised by a question from an executive or board member.

5. Try to “under-promise” on your expectations. We will all look better if we perform better than expected

6. Compensation is a huge part of HR, but it is not always the MOST important part of HR. Schedule your calendar and project plans around my other priorities and I will be able to provide you much better support.

7. Remember that I get only a few minutes to gain approval. Anything you can do to simply your recommendations (better charts, pictures etc…) is greatly appreciated and helpful in moving my needs and your needs forward more quickly.

Communication Approach


Performensation was founded in 2006 in response to the demand for more strategic and effective compensation programs.

Each of our projects incorporates four key elements. Each component must be carefully crafted to your unique goals and culture.

Vision: We understand where you are headed and have the skills to get you there. We are respected throughout the industry for our forward-thinking perspective and our ability to execute on it.

Foundation: Long-term solutions are based on evidence, not built on gimmicks or fads. They meet your current needs and allow for adjustments to organizational and market conditions. Your program’s foundation must reflect your company and the goals it is designed to support.

Design: A great program combines creativity with practicality. We utilize our broad and deep understanding of rules, regulations, processes and providers to ensure your program delivers high-performance results. Our designs are easy to understand, compliant and effective.

Communication: Participants only value what they understand. Communication must be built in to every step of the process. We ensure that all program elements are relevant and make sense to your targeted audience.

Selling the C-Suite on your Compensation Plan

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