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bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
4 ways to
communicate compensation
that drive strategic outcomes.
Communicating Compensation
ToExecutives and Managers
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Todd Grierson
H E A D I N D U S T R Y R E L A T I O N S
A T B A M B O O H R
Mykkah Herner
M O D E R N C O M P E N S A T I O N
E V A N G E L I S T A T P A Y S C A L E
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
1
Three Perspectives on
Compensation
Communication
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Pudgy desk on fire
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
HR wants to be involved in handling
bigger issues that directly impact the
company and its bottom line.
1
The August 2014 study collected responses via an online survey from 1,307 U.S.-based HR professionals (the majority
of whom [75 percent] have worked in the HR industry for 10+ years) who are currently employed by small (<50
employees) to large (500+ employees) businesses. This research was generated by BambooHR and HR Daily Advisor.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Edit typo
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Pudgy conveyor belt
from pitch deck
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
How does perception of pay
impact employees?
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Most Do Not Know if They Are Paid Fairly
Full Article: https://hbr.org/2015/10/most-people-have-no-idea-whether-theyre-paid-fairly
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
of employees are ok with low pay if
the rationale is explained
—PayScale Employee Survey 2015
82%
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
v
HOW
WHY
Values
Mission
Beliefs
Culture | Corp. Brand
WHAT
Start with Why
OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE)
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
“People are motivated by
consequences they anticipate.”
—Crucial Conversations
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
BambooHR Core Values
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
1
Understanding
Pay Transparency
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Defining Transparency
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Transparency Spectrum
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Pay Transparency
gets everyone in the same
boat, paddling in the
same direction.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Why Would Anybody
be More Transparent
about Pay?
Pay Transparency
Trust
Better Business
Outcomes!
Engagement
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
www.payscale.com
Talking about pay
isn’t always fun
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
1
Communicating with
Executives
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
www.payscale.com
• Understand the executive audience
• Align compensation with business objectives
• Incorporate leading edge practices
• Keep executives up to date
Exec communication tips
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
What do your Executives
Care About?
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Benefits of Comp Plans
23
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Prepare Talking Points
• Compensation philosophy and
purpose
• Compensation plan changes at
the highest level
• Market study and results
• Next steps—talk with managers
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Report High Level Info
• Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc.)
• Report these on a regular basis
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
1
Communicating
with Managers
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Compensation is about
an exchange of value,
not money.
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Value Exchange
Experience in industry
Experience in market vertical
Experience in adjacent markets
Experience in field of discipline
Experience in adjacent disciplines
Experience with competitors
Product knowledge
Competitor knowledge
Time and experience in company
Education
Discipline training and certification
Supply and demand
Employer Value DriversEmployee Value Drivers
Base pay
Performance Pay
Paid time off
Benefits
Travel
Culture and environment
Work flexibility
Work/Life balance
Meaningful work
Who you work with
Challenging work
Opportunity to impact
Job security
Shared purpose / mission
Career advancement opportunities
Autonomy
Senior leadership
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
of companies are confident
in managers’ ability to have
tough pay conversations
2016 PayScale Compensation Best Practices Report
17%
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Agents of the
Organization
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Equip Managers
• Set expectations
• Educate them
• Give them the big picture
• Give them tools
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Negotiation Skills
• Sell the organization & 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
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Consider Workplace “Currency”
 Know what motivates your employees
 Additional/Alternative Perks
 FTE preference
 Staggered increase or offer
 PTO
 Work assignments
 Development opportunities
33
Identify Creative Solutions
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
The Compensation
Review Meeting
1. Prepare for the meeting
2. Deliver feedback and listen
3. Follow up
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
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 low
o Pay is high
o No increase due to performance
o “I found this on the internet”
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Thank you!
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Questions?
BambooHR
Receive a free job posting on our ATS and full HRIS for one week.
We will contact everyone within the next few days to set this up.
Download our free eBook: Communicating Compensation: Your guide to
tackling tough conversations about pay
PayScale
bamboohr.com payscale.com
Communicating Compensation to Executives and Managers
Final Challenge
1%
bigger
37x
growth

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