Comp Foundations: Executive Buy-in

1. Comp
Founda+ons:
Ge0ng
Execu+ve
Buy-­‐in

2. www.payscale.com
Introduc+on
Stacey
Klimek
VP
People

3. www.payscale.com
Introduc+on
Jennifer
Ferris,
CCP
Sr
Comp
Professional
&
Team
Lead
Kendall
Selle,
CCP
Manager,
Customer
Success

4. www.payscale.com
54
Million
Salary
Profiles
250
Compensable
Factors
10
Org
types
350
Industries
15,000
Posi+ons
The
World’s
Largest
Salary
Database

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It’s
hard
out
there
for
HR
&
Comp
Pros

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HR
Myths
• HR
people
make
decisions
based
on
feelings,
not
data
• HR
people
get
in
the
way
with
all
their
rules
and
processes
• HR
people
are
tac+cal,
not
strategic

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The
C-­‐Suite:
What
Makes
them
Tick

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Recrui+ng
top
talent
(growth
in
key
areas)

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Different
roles
are
of
different
value
to
your
organiza+on.
And
that’s
okay.

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Now
What?

12. How
do
you
know
what
to
pay
for
which
roles?
(which
skills
$$)

13. “If
a
developer
has
Ruby
skills,
they
can
count
on
approximately
$17,000
annually
added
to
their
salary,
and
that's
not
chump
change,”
CIO
Magazine

14. Define
Your
Roles

15. Where
do
you
want
to
be
in
the
market?
You
don’t
have
to
just
pick
one
strategy!

16. Strategy
Set
Up

17. Pick
Your
Targets

18. Labor
Markets

19. Pay
Structure

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Reten+on

21. “The
world
isn’t
really
on
an
annual
cycle
anymore
for
anything.”
Susan
Peters,
GE

23. Flight
Risks

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Green
&
Red
Circled
Employees

25. Green
Circled

26. Red
Circled

27. The
Big
Picture

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Engagement

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Do
employees
feel
valued?

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We
discovered
that
transparent
conversa+ons
about
money
can
actually
mi+gate
low
pay.
So,
if
an
employer
pays
lower
than
the
market
average
for
a
posi+on,
but
communicates
clearly
about
the
reasons
for
the
smaller
paycheck,
82%
of
employees
we
surveyed
s+ll
felt
sa+sfied
with
their
work.

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Conversely,
we
found
overpaying
employees
in
an
effort
to
retain
them
without
having
this
larger
conversa+on
about
pay
doesn’t
ensure
they
are
more
sa+sfied.

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Sound
financial
decisions

33. What’s
the
cost
of
ge0ng
comp
wrong?
Payroll is by far your biggest
expense; the cost of getting it
wrong is tremendous.

34. www.payscale.com
Costs
of
ge0ng
comp
wrong
Payroll
costs:
$10
million
Pay
Strategy
Misalignment:
.5%
Annual
Cost:
$50,000

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What
could
your
organiza+on
do
with
another
$50,000
a
year?

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Communica+on
Tips:
Speaking
the
Language
of
the
C-­‐Suite

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Keep it simple. Have slides available to
support your ideas, but don’t rely on them.
It’s a conversation.
Grab
their
alen+on

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The key to gaining respect is to speak
authoritatively about your subject. Present
problems backed up by data. Kill the HR
Jargon, yet do use enough industry
language to demonstrate your knowledge
Be
a
trusted
advisor

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Frame everything according to the drivers
that affect the business and the metrics
that this exec uses to evaluate activities
Why
should
they
care?

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Show multiple solutions, then advise which
choice you’d select. Don’t present
problems without solutions.
So
what’s
next?

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Regularly share high-level snapshots of how
the changes you’re making are impacting
your organization’s success.
Keep
‘em
in
the
loop

43. Summary
Stats

44. Customize
The
Report

45. I’m
going
to
create
a
compensa+on
plan
to
provide
more
structure
to
how
salary
decisions
are
made.
Don’t
say…
Instead
say…
I’ve
no+ced
some
challenges
that
con+nue
to
disrupt
our
ability
to
do
business
and
I
want
to
help
fix
them.
Therefore
I
would
like
to
facilitate
a
process
to
define
and
ar+culate
the
goals
of
our
comp
program.

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The
Bolom
Line
People
are
the
lifeblood
of
your
organiza+on.
Keeping
them
mo+vated
and
engaged
is
key
to
your
organiza+on’s
success.

47. www.payscale.com
Q
&
A
(we’ll
email
this
out)