The Pay Transparency Challengeresources.payscale.com/rs/417-NLK-080/images/pay... · communication,...
Transcript of The Pay Transparency Challengeresources.payscale.com/rs/417-NLK-080/images/pay... · communication,...
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The Pay Transparency ChallengeDeciding Where to Fall on the Salary Transparency Spectrum
Mykkah Herner, MA, CCPDirector of Professional Services
Paige Hanley, CCPSr. Compensation Professional
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14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors41 Million Salary Profiles
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Agenda
• Pay Transparency Matters
• Defining Transparency
• The Transparency Spectrum
• Moving to Greater Transparency
• Immediate Actions
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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
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Workforce Demographics…
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… are changing
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Everybody’s doing it…
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… whether they want to or not
• CEO to worker ratios
• 990s
• Say on Pay
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Defining Transparency
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What are we being transparent about?
• Pay Philosophy
• Pay Strategy
• Pay Practices
• Market Studies
• Pay Rates
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Pay Philosophy
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• Defining the competition
• Aiming to meet or exceed the competitions
• Deciding what matters
• Acknowledging various segments
Pay Strategy
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• We have a plan
• Jobs have grade assignments
• Range minimums / Range maximums
• Increase process / cycle
• Budget process / cycle
Pay Practices
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Market Studies
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Salary Rates
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The Transparency Spectrum
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Market
Study and
Processes
known
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1. Only own pay
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2. Manager & Employee Talk About Pay
• Philosophy shared with managers
•High level strategy shared with managers
• “We have a plan” shared with managers
•Manager & Employee discuss EE pay
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3. Company Pay Philosophy• Philosophy shared with employees
• Strategy shared with managers
• “We have a plan” shared with Ees; ranges shared with Ees & Mgrs
•We do a market study
•Manager & Employee discuss EE pay
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4. Market Study and Comp Processes known• Philosophy explained to employees
• High level strategy shared with Ees; full strategy shared with mgrs
• Mgrs know all ranges to their level; EEs know ranges in their path and how to advance
• Market study provider known; EE to mkt results known by EE
• Manager & Employee discuss EE pay
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5. Managers Trained to Talk Pay• Philosophy explained to employees
•High level strategy shared with Ees; full strategy shared with mgrs
•Mgrs know all ranges to their level; EEs know ranges in their path and how to advance
• Co-wide results known; EE to mkt results known by EE
•Manager & Employee discuss EE pay well
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6. Published Ranges & Grades• Philosophy explained to employees
• Full strategy shared with EEs
•All ranges shared with Ees; budget & increase process / cycle known
•Dept-wide results known
•Manager & Employee discuss EE pay well
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7. Everybody Knows Your Salary• Philosophy explained to employees
• Full strategy shared with EEs
•All ranges shared with Ees; budget & increase process / cycle known
• EE to market results shared
• EVERYBODY KNOWS EVERYBODY’S PAY
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Moving to greater transparency
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• Explain what transparency is (and isn’t)
• Link transparency with results that matter
Gain executive support
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• Provide information about the business, rationale for increasing communication, and tools for success
• Expect more to get more
• No really, train them on communication
Train managers
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• What’s the make-up of your workforce?
• Are they ready for more transparency?
• Do they want it?
Assess Workforce
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D ecider
A ccountable
R esponsible
C onsulted
I nformed
Get clear about roles
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Develop a plan
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Employees know
× Their pay
× The starting rate for their job
× Their range cap
Employees know
Their pay
Grade & range
Comp Philosophy & basis for increases
Average increase across the org / dept / level
Third Party Study
Requires:• Executive support and buy-in for comp plan• Increased manager savvy
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Functional Transparency
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Immediate Actions
Assess your workforce
Educate yourself further about transparency
Notice what you already do in your org
Think about what “pushing the envelope” means to you
Begin talking with your executives
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Mykkah Herner, MA, CCPDirector of Professional Services
Paige Hanley, CCPSr. Compensation Professional
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