The Top Comp Trends of 2016resources.payscale.com/rs/417-NLK-080/images/12-8-16...2016/12/08 ·...
Transcript of The Top Comp Trends of 2016resources.payscale.com/rs/417-NLK-080/images/12-8-16...2016/12/08 ·...
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The Top Comp Trends of 2016
Paige Hanley, CCPManager, Customer Operations
Jenni Marquez, CCPSenior Compensation Professional
#CompTrends2016
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www.payscale.com#CompTrends2016
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Jenni Marquez, CCPSenior Compensation Professional
https://www.linkedin.com/in/jennimarquez
Paige Hanley, CCPManager, Customer Operationshttps://www.linkedin.com/in/paige-hanley
#CompTrends2016
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Major trends of 2016
Should I hop on that train?
Looking forward to 2017
Things to do today
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Major Compensation Trends
#CompTrends2016
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Compliance
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FLSA
Minimum Wage
Others
Gender Pay Equity
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48/50 States have some version of a pay equity law on the books
9/10 Provinces* have some version of a pay equity law on the books
4 states added pay equity laws, 9 in progress
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Mix
#CompTrends2016
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What is the Right Compensation Mix?
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The variable pay umbrella
Incentive
Project Bonus
Retention Bonus
Signing Bonus
Perks#CompTrends2016
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What type of bonus?
15.8% 18.1%
61.8%
25.7%
40.0%
14.4%
Retentionbonuses
Hiringbonuses
Individualincentivebonuses
Teamincentivebonuses
Spot bonusesor other
discretionarybonus
programs
Other (pleasespecify)
#CompTrends2016
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Get Creative
Passes to sporting events
Catered lunches for winning teams
Days off after big deadlines
Choice of work assignment
Development opportunities
Lunch with the CEO
Remote work
#CompTrends2016
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Performance
#CompTrends2016
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44% of companies said
shifting from traditional performance reviews
in favor of real-time feedback
When asked what would shake up the HR world most in 2016…
#CompTrends2016
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Align to business goals & cycles
Pay for results
Get creative
#CompTrends2016
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Linking Pay to Performance
Culture and perks that reward high performers
Higher increases for top performers
Results-based incentive plan
Performance-based rewards & recognition
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Market
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Greater awareness of market
2.5% Oct unemployment for college educated 25+
29% Pay boost commanded by premium skills like Scala
60% Of employees who feel underpaid intend to leave
#CompTrends2016
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Use market data and strategy to drive comp decisions
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EqualFair
A note on fairness:Fair doesn’t necessarily mean equal
Differentiate* Pay by
Performance
Results
Experience
Skills
Education*Be aware of legal restrictions
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Transparency
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TOP-PERFORMING
of Top-Performing companies are transparent about pay
47%
Vs 40% of all companies
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The PayScale Pay Transparency Spectrum
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of employees are ok with low pay if the rationale is explained
82%
of companies are confident in managers’ ability to have tough pay conversations
80% of employees paid above market believe they’re paid at or below
17%
#CompTrends2016
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Should I hop on that train?
#CompTrends2016
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It’s not a best practice if it’s not best for
your organization
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Baby Boomers 1946 – 1964 Size: 74M
Communication
About Comp:
Private
Average Tenure:
15 Years
Career Mindset:
Loyal
Self-driven
High Work Ethic
Retirement
Generation X 1965 – 1979 Size: 66M
Communication
About Comp:
Semi-private
Average Tenure:
5 Years
Career Mindset:
Pessimistic
Self-reliant
Work/Life Balance
Management
Millennials 1980 – 1995 Size: 74M
Communication
About Comp:
Public
Average Tenure:
18-24 Months
Career Mindset:
Idealistic
Fairness, Flexibility, Values
Work/Life Balance
Advancement
Generation Z 1996 – Present Size: TBD, 69M+
Communication
About Comp:
Semi-private
Average Tenure:
TBD
Career Mindset:
Realistic
Multicultural Fluency
Technology Native
Learning with a Purpose
#CompTrends2016
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FiveGenerations
of 2020
Gen Z
Millenials
Gen X
Baby Boomers
Traditionalists
Bureau of Labor Statistics Employment Projections
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Pay structure may differ
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Consider
org culture and valuesworkforce preferences
industry or regional normsjob level and/or function
company life cyclebudget…
#CompTrends2016
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What can we expect?
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Oval office to your office…
#CompTrends2016
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CompliancePerformanceTransparency
MarketMix
#CompTrends2016
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Things to do today
• Celebrate 2016 accomplishments• Sign up with state and local compliance lists• Audit your performance practices• Decide what and how much info to share• Complete a market study • Evaluate your mix of pay
#CompTrends2016
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PayScale Delivers Where Other Compensation Providers Fall Short
PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 54 million salary profiles. More than 3500 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
Jenni Marquez, CCP
Senior Compensation Professional
Paige Hanley, CCP
Manager, Customer Operations
www.payscale.com
#CompTrends2016