This talk covers many basic principles for increasing Pay Transparency in organizations.

1. 2019•bethanye@compa.as
PAY
TRANSPARENCY
Retrofit Pay Transparency into your Organization — One Bite at a Time
bethanye McKinney Blount • Compaas • bethanye@compa.as

2. 2019•bethanye@compa.as
bethanye Blount
Co-founder, CEO
Compaas
• Founder, CEO — MailRank (acquired by Facebook, 2011)
• Founding Advisor, Project Include
• Forbes Top 50 Women in Tech, 2018
Hello! 2

3. 2019 • bethanye@compa.as
WHY DO
I LOVE
THIS?
3

4. 2019•bethanye@compa.as
WHAT WE’LL DISCUSS
‣ What do we mean by Pay Transparency?
‣ Why is Pay Transparency worth the work?
‣ Five Pillars of Pay Transparency
4

5. 2019•bethanye@compa.as
WHAT IS
PAY TRANSPARENCY?
5

6. 2019 • bethanye@compa.as
TRANSPARENCY
IS
COMMUNICATION
6

7. 2019•bethanye@compa.as
IT’S A RANGE
7
Closed System
Secret, Flexible
No one knows much outside HR
Very Transparent
Cultural Cornerstone
Fairly Inflexible
Individual details are shared
Basic Information
Employees know about themselves
Level definitions are public
Common Transparency
Levels are generally shared
Compensation philosophy is shared
More detail on this in First Round Review:
“Opening Up About Comp Isn’t Easy — Here’s How to Get More Transparent”

8. 2019•bethanye@compa.as
OPAQUE
8
Closed System
Secret, Flexible
No one knows much outside HR
Very Transparent
Cultural Cornerstone
Fairly Inflexible
Individual details are shared
Basic Information
Employees know about themselves
Level definitions are public
Common Transparency
Levels are generally shared
Compensation philosophy is shared
Super flexible! But has its problems.

9. 2019•bethanye@compa.as
VERY TRANSPARENT
9
Closed System
Secret, Flexible
No one knows much outside HR
Very Transparent
Cultural Cornerstone
Fairly Inflexible
Individual details are shared
Basic Information
Employees know about themselves
Level definitions are public
Common Transparency
Levels are generally shared
Compensation philosophy is shared
Everyone knows everything! Very Transparent… but also has its costs.

10. 2019•bethanye@compa.as
IN THE MIDDLE
10
Closed System
Secret, Flexible
No one knows much outside HR
Very Transparent
Cultural Cornerstone
Fairly Inflexible
Individual details are shared
Basic Information
Employees know about themselves
Level definitions are public
Common Transparency
Levels are generally shared
Compensation philosophy is shared
There’s Basic and Common Transparency

11. 2019•bethanye@compa.as
11
EMPLOYEES KNOW
WHY THEY MAKE
WHAT THEY MAKE,

12. 2019•bethanye@compa.as
11
EMPLOYEES KNOW
WHY THEY MAKE
WHAT THEY MAKE,
AND HOW
THEY CAN MAKE MORE.

13. 2019•bethanye@compa.as
11
EMPLOYEES KNOW
WHY THEY MAKE
WHAT THEY MAKE,
AND HOW
THEY CAN MAKE MORE.
THAT’S IT.

14. 2019•bethanye@compa.as
12
WHY TRANSPARENCY?

15. 2019•bethanye@compa.as
13
Employees
value
transparency.
“Employees who rate their
employers poorly on pay
transparency are 80 percent
more likely to say they want
to leave in the next six
months than those who give
higher marks.”
[Randstadt, Payscale, 2018]

16. 2019•bethanye@compa.as
14
Pay secrecy
fosters
discrimination.
[Gitter and Bamberger, 2014]

17. 2019•bethanye@compa.as
15
Employees
assume they
are underpaid.
“Of the respondents who
felt they were paid below
the market rate for their
position, nearly 90 percent
were actually paid at or above
the market rate.”
[SHRM, Payscale, 2017]

18. 2019•bethanye@compa.as
16
You don’t have
to pay the
highest to
reap benefits.
“How employees feel about
the organization’s pay
philosophy and process has
5.4 times as much impact as
their actual pay.”
[Payscale, 2017]

19. 2019•bethanye@compa.as
Employees often weigh pay differentials among coworkers
more heavily than differentials in the labor market.
— Who Leaves, Where to, and Why Worry?, 2009
WHAT COMPANIES GET
17
Reputation
Recruiting
Retention
Employee Trust
Company Culture
Overall Productivity
Think-pieces
Accolades
Aspiration

20. 2019•bethanye@compa.as
Employees often weigh pay differentials among coworkers
more heavily than differentials in the labor market.
— Who Leaves, Where to, and Why Worry?, 2009
High-trust companies are more than 2½ times more likely to be
high performing revenue organizations than low-trust companies.
— Interaction Associates, 2014
WHAT COMPANIES GET
17
Reputation
Recruiting
Retention
Employee Trust
Company Culture
Overall Productivity
Think-pieces
Accolades
Aspiration

21. 2019•bethanye@compa.as
Employees often weigh pay differentials among coworkers
more heavily than differentials in the labor market.
— Who Leaves, Where to, and Why Worry?, 2009
Not EVERYONE wants this level — and that’s OKAY!
WHAT COMPANIES GET
17
Reputation
Recruiting
Retention
Employee Trust
Company Culture
Overall Productivity
Think-pieces
Accolades
Aspiration

22. 2019 • bethanye@compa.as
MEET
THE
FIVE
PILLARS
18

23. 2019•bethanye@compa.as
CULTURE
19

24. 2019•bethanye@compa.as
ASK THE BIG QUESTIONS 20

25. 2019•bethanye@compa.as
ASK THE BIG QUESTIONS 21
WHO DO WE WANT TO BE?

26. 2019•bethanye@compa.as
ASK THE BIG QUESTIONS 21
WHO DO WE WANT TO BE?
WHAT ARE OUR PRIORITIES?

27. 2019•bethanye@compa.as
ASK THE BIG QUESTIONS 21
WHO DO WE WANT TO BE?
WHAT ARE OUR PRIORITIES?
ARE WE CYCLE-DRIVEN?

28. 2019•bethanye@compa.as
ASK THE BIG QUESTIONS 21
WHO DO WE WANT TO BE?
WHAT ARE OUR PRIORITIES?
ARE WE CYCLE-DRIVEN?
WHAT DOES A GREAT
OUTCOME LOOK LIKE?

29. 2019•bethanye@compa.as
THINK IT THROUGH
22

30. 2019•bethanye@compa.as
THINK IT THROUGH
‣ You can’t do everything, and you may
not want everything.
22

31. 2019•bethanye@compa.as
THINK IT THROUGH
‣ You can’t do everything, and you may
not want everything.
‣ You need leadership buy-in.
22

32. 2019•bethanye@compa.as
THINK IT THROUGH
‣ You can’t do everything, and you may
not want everything.
‣ You need leadership buy-in.
‣ You’ll need to define IDEAL TRANSPARENCY
for your company.
22

33. 2019•bethanye@compa.as
THINK IT THROUGH
‣ You can’t do everything, and you may
not want everything.
‣ You need leadership buy-in.
‣ You’ll need to define IDEAL TRANSPARENCY
for your company.
‣ You only have so much Social Capital to spend.
22

34. 2019•bethanye@compa.as
THINK IT THROUGH
‣ You can’t do everything, and you may
not want everything.
‣ You need leadership buy-in.
‣ You’ll need to define IDEAL TRANSPARENCY
for your company.
‣ You only have so much Social Capital to spend.
‣ You need Realistic Timelines for making
changes that stick.
22

35. 2019•bethanye@compa.as
EDUCATION
23

36. 2019•bethanye@compa.as
HOW DOES COMP WORK? 24

37. 2019•bethanye@compa.as
HOW DOES COMP WORK? 25
WHAT ARE CAREER LADDERS?

38. 2019•bethanye@compa.as
HOW DOES COMP WORK? 25
WHAT ARE CAREER LADDERS?
HOW DO WE BUILD
BANDS/RANGES?

39. 2019•bethanye@compa.as
HOW DOES COMP WORK? 25
WHAT ARE CAREER LADDERS?
HOW DO WE BUILD
BANDS/RANGES?
HOW DO STOCK GRANTS WORK?

40. 2019•bethanye@compa.as
HOW DOES COMP WORK? 25
WHAT ARE CAREER LADDERS?
HOW DO WE BUILD
BANDS/RANGES?
HOW DO STOCK GRANTS WORK?
WHAT IS OUR
BONUS SYSTEM/POLICY?

41. 2019•bethanye@compa.as
Benefits
‣ Good for parents? Caregivers?
‣ Student loan support
‣ Health insurance packages
‣ Some retirement benefits are better for younger
staff, some are better for older
MORE THAN WAGES
26

42. 2019•bethanye@compa.as
Benefits
‣ Good for parents? Caregivers?
‣ Student loan support
‣ Health insurance packages
‣ Some retirement benefits are better for younger
staff, some are better for older
MORE THAN WAGES
26
Bonuses
‣ Performance
‣ Spot bonuses (frequency and amounts)
‣ Sign-on & Severance (one-time payments)

43. 2019•bethanye@compa.as
Benefits
‣ Good for parents? Caregivers?
‣ Student loan support
‣ Health insurance packages
‣ Some retirement benefits are better for younger
staff, some are better for older
MORE THAN WAGES
26
Bonuses
‣ Performance
‣ Spot bonuses (frequency and amounts)
‣ Sign-on & Severance (one-time payments)
Stock
‣ Employee stock grants
‣ How are these distributed at hire?
‣ ESPP: Is it equally available?

44. 2019•bethanye@compa.as
MEET THEM WHERE THEY ARE
27

45. 2019•bethanye@compa.as
MEET THEM WHERE THEY ARE
‣ Compa ratios can be confusing.
Try using Range Penetration for managers.
27

46. 2019•bethanye@compa.as
MEET THEM WHERE THEY ARE
‣ Compa ratios can be confusing.
Try using Range Penetration for managers.
‣ Help them see both the Team and
Individual Contributor perspectives.
27

47. 2019•bethanye@compa.as
MEET THEM WHERE THEY ARE
‣ Compa ratios can be confusing.
Try using Range Penetration for managers.
‣ Help them see both the Team and
Individual Contributor perspectives.
‣ Getting the Complete Picture is challenging.
Use analytics to help them understand.
27

48. 2019•bethanye@compa.as
MEET THEM WHERE THEY ARE
‣ Compa ratios can be confusing.
Try using Range Penetration for managers.
‣ Help them see both the Team and
Individual Contributor perspectives.
‣ Getting the Complete Picture is challenging.
Use analytics to help them understand.
‣ How do Performance Reviews relate to
Compensation Changes?
27

49. 2019•bethanye@compa.as
PROCESSES
28

50. 2019•bethanye@compa.as
GOALS, THEN ACTION 29

51. 2019•bethanye@compa.as
GOALS, THEN ACTION 30
WHO ARE OUR CUSTOMERS?

52. 2019•bethanye@compa.as
GOALS, THEN ACTION 30
WHO ARE OUR CUSTOMERS?
WHAT ARE OUR STEPS?

53. 2019•bethanye@compa.as
GOALS, THEN ACTION 30
WHO ARE OUR CUSTOMERS?
WHAT ARE OUR STEPS?
WHAT DO WE MEASURE?

54. 2019•bethanye@compa.as
GOALS, THEN ACTION 30
WHO ARE OUR CUSTOMERS?
WHAT ARE OUR STEPS?
WHAT DO WE MEASURE?
HOW WILL WE MAKE THIS
REPEATABLE?

55. 2019•bethanye@compa.as
PRIORITIZE AND CONQUER
31

56. 2019•bethanye@compa.as
PRIORITIZE AND CONQUER
‣ Prioritizing retention?
Existing employees care about Now and Next.
31

57. 2019•bethanye@compa.as
PRIORITIZE AND CONQUER
‣ Prioritizing retention?
Existing employees care about Now and Next.
‣ Prioritizing recruitment?
Candidates want to understand the Big Picture.
31

58. 2019•bethanye@compa.as
PRIORITIZE AND CONQUER
‣ Prioritizing retention?
Existing employees care about Now and Next.
‣ Prioritizing recruitment?
Candidates want to understand the Big Picture.
‣ Bring the company along.
Don’t try everything at once!
31

59. 2019•bethanye@compa.as
TECHNOLOGY
32

60. 2019•bethanye@compa.as
WHAT TECH
MAKES SENSE?
‣ HR systems — Source of Truth
‣ Spreadsheets and Reports
‣ Emails and/or Internal Posts
‣ Pulse surveys/culture surveys
Yes. It should be much better.
(Sorry!)
33

61. 2019•bethanye@compa.as
COMMUNICATION
34

62. 2019•bethanye@compa.as
COMMUNICATION IS KEY 35

63. 2019•bethanye@compa.as
COMMUNICATION IS KEY 36
CONTINUOUS &
SEASONAL

64. 2019•bethanye@compa.as
COMMUNICATION IS KEY 36
CONTINUOUS &
SEASONAL
RAMP IT UP BEFORE REVIEWS

65. 2019•bethanye@compa.as
COMMUNICATION IS KEY 36
CONTINUOUS &
SEASONAL
RAMP IT UP BEFORE REVIEWS
BE CLEAR ABOUT OFF-CYCLE

66. 2019•bethanye@compa.as
COMMUNICATION IS KEY 36
CONTINUOUS &
SEASONAL
RAMP IT UP BEFORE REVIEWS
BE CLEAR ABOUT OFF-CYCLE
PROACTIVE > REACTIVE

67. 2019•bethanye@compa.as
USE YOUR
TOOLS
‣ All-hands/big meetings
‣ Leadership communications
‣ Emails and/or Internal Posts
‣ Total Rewards Reports
Repetition is Key!
37

68. 2019•bethanye@compa.as
TAKE BABY STEPS
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69. 2019•bethanye@compa.as
TAKE BABY STEPS
‣ Communicate before you communicate.
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70. 2019•bethanye@compa.as
TAKE BABY STEPS
‣ Communicate before you communicate.
‣ You don’t need to do everything all at once!
38

71. 2019•bethanye@compa.as
TAKE BABY STEPS
‣ Communicate before you communicate.
‣ You don’t need to do everything all at once!
‣ Different audiences have different questions.
38

72. 2019•bethanye@compa.as
TAKE BABY STEPS
‣ Communicate before you communicate.
‣ You don’t need to do everything all at once!
‣ Different audiences have different questions.
‣ Be consistent.
38

73. 2019•bethanye@compa.as
TAKE BABY STEPS
‣ Communicate before you communicate.
‣ You don’t need to do everything all at once!
‣ Different audiences have different questions.
‣ Be consistent.
‣ Iterate. When a communication channel isn’t
working, try something else!
38

74. 2019•bethanye@compa.as
A FEW QUESTIONS? 39

75. 2019•bethanye@compa.as
QUICK REVIEW
‣ Pay Transparency is a Range.
‣ Companies can reap many benefits…
if they do the work.
‣ Five Pillars of Pay Transparency
Culture • Education • Process
Technology • Communication
40

76. 2019 • bethanye@compa.as
THANKS!
bethanye@compa.as
www.compa.as