The Pay Transparency Spectrum

Transcription

1 The Pay Transparency Spectrum Rita Patterson, CCP Manager, Customer Education Mykkah Herner, MA, CCP Modern Compensation Evangelist

2

3 Rita Patterson, CCP Manager, Customer Education Mykkah Herner, MA, CCP Modern Comp Evangelist

4 Why Transparency? The Pay Transparency Spectrum Tips for Increasing Transparency Getting started

5 Why Transparency?

6 Transparency is linked to satisfaction PERCENT OF RESPONSES LOW AVERAGE HIGH 50% 31% 19% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% &5 % Responses with Intent to Leave % Responses with High Satsifaction

7 Results! Engagement Trust Transparency

8 Transparency drives results Photo: Study:

9 Millennials I found this report online

10 Baby Boomers Size: 74M Communication About Comp: Private Average Tenure: 15 Years Generation X Size: 66M Communication About Comp: Semi-private Average Tenure: 5 Years Millennials Size: 74M Communication About Comp: Public Average Tenure: Months Career Mindset: Loyal Self-driven High Work Ethic Retirement Career Mindset: Pessimistic Self-reliant Work/Life Balance Management 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

11 Five Generations of 2020 Gen Z Millenials Gen X Baby Boomers Bureau of Labor Statistics Employment Projections Traditionalists

12 82% of employees are ok with low pay if the rationale is explained 80% of employees paid above market believe they re paid at or below 17% of companies are confident in managers ability to have tough pay conversations

13 TOP-PERFORMING 47% of Top-Performing companies are transparent about pay Vs 40% of all companies

14 The Pay Transparency Spectrum

15 The PayScale Pay Transparency Spectrum

16 1. Paycheck Here s what you get paid

17 2. Market Data Here s how we use market data to set pay

18 3. Comp Plan Here s where your pay falls in range

19 4. Culture alignment Here s why we pay like we do

20 5. Open Salary Here s everything you want to know about everyone s pay

21 Tips for Increasing Transparency

22 Functional Transparency

23 Gain executive support

24 Develop a plan Employees know Their pay Range max Employees know Their pay Grade & range Comp Philosophy & basis for increases Requires: Executive support and buy-in for comp plan Increased manager communication skills

25 Get clear about roles D A R C I Decision-Maker Accountable Responsible Consulted Informed

26 Assess Workforce

27 Train managers

28 Total Comp Statement

29 Getting Started Do a market study Evaluate your workforce Assess manager communication skills Determine current level of transparency Identify desired level of transparency Make a plan to get there

30 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: /compensation-today Join our Group on LinkedIn: Compensation Today: HR Best Practices Rita Patterson, CCP Manager, Customer Education Mykkah Herner, MA, CCP Modern Compensation Evangelist