Where HR Data Makes a Difference

bamboohr.com payscale.com
Mart Withers
Director of Product Marketing
BambooHR
Brian Webber
Senior HR Business Partner
PayScale

Administrative vs. Cultural Tasks
58% of HR professionals believe HR analytics are very important,
but only 16% view themselves as an expert in using HR data.
16%

Administrative
Tasks
● Payroll
● Benefits administration
● Time off management
● Company communication
● Compliance
● Signatures

Culture
The summation of how people within an organization
interact with each other and work together.

Cultural Tasks
● Long-term strategies
● Compensation strategy
● Employee satisfaction
● Talent management

Benefits of a
Great Employee
Experience
● 28x: Fast Company’s Most
Innovative Companies
● 11.5x: Glassdoor Best Places
to Work
● 2.1x: Forbes World’s Most
Innovative Companies
● 4.4x: LinkedIn North America’s
Most In-Demand Employers
● 2x: American Customer
Satisfaction Index

Benefits of a
Great Employee
Experience
● 4x Profit
● 2x Average revenue
● 25 percent smaller

What’s important to measure?
● Retention
○ “bad” attrition (voluntary, high performers)
○ voluntary in first 18 months
● Employee Satisfaction
○ a measurement of an employee’s “happiness” with current role
○ it does not measure how much effort the employee is willing to expend
● Employee Engagement
○ a measurement of an employee’s emotional commitment to a company
● Recruiting
○ time to fill (speed matters)
○ quality of hire

Employee
Satisfaction
Responses:
● 10-9: Promoters
● 8-7: Neutrals
● 6-0: Detractors

(DETRACTORS/UNHAPPY) (NEUTRALS) (PROMOTERS/HAPPY)
- eNPS SCORES CAN RANGE FROM -100 TO +100
- A SCORE OF ZERO WOULDMEAN YOU HAVEAS MANY DETRACTORSAS PROMOTERS
WHAT IS
eNPS®

Compensation is often a source of
dissatisfaction for employees as
well as why companies have a hard
time with hiring.

How Compensation Data and
Metrics Help You Make
Competitive Offers

I need to hire a software engineer…
How much should I pay?

Comparing Software Developers

Not all skills should be compensated
Ask yourself: is this skill…
● Technical or non-technical?
● Essential, useful, assumed or irrelevant?
Two ways to compensate skills:
● Include in market benchmark
● Reflect through range penetration
Most critical jobs to benchmark with skills are those where technical
skills provide important definition for the job beyond the job’s title.

Data Allows You to Lead
With Your Best Offer

How compensation analysis
helps you maintain fair pay
for existing employees

What compensation data
& metrics can do for your business
● Make sure you’re paying all employees fairly
and you’re following your compensation strategy
● How does your comp plan compare to the market?
● Is it rewarding the behaviors you need to achieve to business
objectives?
● Identify over / underpaid employees
● Uncover potential gender / racial pay disparities
● Help you clearly communicate your pay rationale to employees and
managers, increasing employee satisfaction

Are we paying competitively?
KEY METRIC
Compa Ratio: Compare employee pay to the market values for a position
to which they’re assigned at your target percentile
10.8 1.2
At market Above marketBelow market

Do we need to adjust our salary ranges?
Key Metric: % Difference Between Range Midpoint vs. Avg. Market Value
Software Engineers in Seattle Minimum 50th percentile Max
Your Range 90,000 130,000 170,000
Market Data 140,000
Percent difference 7.7%

Pay Compression =
To avoid pay compression, regularly benchmark your positions to the market.
● Define your “competitive” set (location, industry, org type and org size).
● Benchmark your jobs to other similar roles in the market to identify the “going rate” for a position.
● Align pay for all employees in the same or similar job to your market rate.
Pay differentials that
are too small to be
considered equitable

Pay Equity Can Make (or Break Your Brand)

Conduct Pay Equity
Analysis to Detect:
● Pay gaps hidden within certain job titles or departments
● Underpaid high performers and overpaid low performers
● Significant differences in promotion rates, raise frequencies/amounts,
and/or bonus eligibility for similar employees doing similar work.
● Men and women who do similar work, but are not in the same
job/level

Practical Advice & Considerations
● Make sure to involve legal counsel throughout the process
● Conduct your pay equity analysis ahead of budgeting season in order
to create an “equity reserve” to make pay equity adjustments
● Determine your optimal communication strategy for leadership,
employees and externally. Employment brand really matters in today’s
tight talent market!
● Remember it isn’t only about pay – understand what potentially
created the inequities and how to put strategic plans in place to
avoid future problems

Four Issues with Annual Reviews
● They take too long: Managers can spend up to 210 hours per year
doing performance reviews and employees can spend up to 40 hours.
● They’re subjective: The questions often reveal more about the manager
than they do about the employee.
● They’re infrequent: It's hard to remember what happened at the
beginning of the year when completing a review at the end of the year.
● Their purpose is unclear: Is the review to improve performance, to
justify compensation decisions, or to punish mistakes?

What’s important to measure?
● Retention
○ “bad” attrition (voluntary, high performers)
● Employee Satisfaction
○ a measurement of an employee’s “happiness” with current role
○ it does not measure how much effort the employee is willing to expend
● Employee Engagement
○ a measurement of an employee’s emotional commitment to a company
● Recruiting
○ time to fill (speed matters)
○ quality of hire

HR Platform: Removing
Data Barriers

Barriers to Gathering HR Data
● People have day jobs: If they don’t have the time to calculate their PTO
balance or include details in their time tracking, then they’ll choose to
focus on their duties.
● Incorrect data entry: Does the data need to be in a specific format,
especially when dealing with figures or dates? If there are requirements
your employees don’t understand, someone will have to fix mistakes.
● Poorly connected systems: If employees have to transfer data by hand,
there’s more opportunity for human error.

What is an
HRIS vs HRMS
vs HCM?

What to Look for in HR Software
● Delightful experience: How long does it take to access the software? To make
changes?
● Employee self-service: Can employees learn quickly to DIY?
Is it mobile friendly?
● Seamless integrations: Does the software integrate with other tools that you
use in HR, such as payroll programs, compensation management platforms,
performance management tools, ATS, time tracking, etc.?
● Support: How exceptional are people who can support and guide
you to success in implementing, rolling out and using the platform
you choose?

Takeaways
For HR Data to be useful, it’s important to put it in the
context of your values and objectives.
● Ongoing analysis helps keep your policies in
alignment with what your employees value
● Compensation analysis helps ensure fair pay
and helps you avoid salary compression
● An HR platform and satisfaction data help you
spot trends in your long-term experience
● Regular performance management provides
ground-level data and offers a chance to
improve the employee experience.

Questions?
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.
BambooHR
Check out our resources on compensation.
payscale.com/compensation-today
PayScale

Thank You!
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today

Where HR Data Makes a Difference

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