Getting the Most from Your Compensation Review Process

Transcription

1 Getting the Most from Your Compensation Review Process Ruth Thomas Senior Consultant presented by Tom McKeown EVP of Sales & Marketing

2 AGENDA Why a Formal Compensation Process Review? Meaningful Takeaway's From Review 3- Month Action Case for a New Solution Example of Compensation Technology Questions

3 Process Review cross only when car stops Did the review achieve its intended outcomes? Do our compensation policies needs to be reviewed? Were key milestones met? What can be done to improve the current review process? Test use satisfaction?

4 Compensation Management Cycle Understand external market and internal equity Measure and refine Formulate compensation strategy Execute and administer programmes Design compensation programmes

5 Intended Outcomes Budget Adherence Allocations In Line Internal Relativity Market Positioning Pay for Performance Measurability 12 Months Objectives

6 Manager Allocation Budget Adherence Overspend/ Underspend Justification Off cycle merit changes?

7 Allocations Rigorous Moderation Reporting Stated Policy aims High Performers Targeted Populations

8 Relativity Maintained Internal Pay Structures Current Salary Bands

9 Market Positioning Position Post Review Benchmarking and Salary Survey Business Strategy Changes

10 Pay for Performance Pay vs. Employee Performance Pay vs. Business Performance Consistency of Allocations Anomaly Populations

11 Next 12 Months It will take longer to measure some aspects of how of how effective your Pay for Performance approach has been. Employee Engagement & Employee Productivity

12 Employee Engagement How important is pay in the employee engagement equation? Retention - Output from exit interviews

13 Improving Employee Engagement on Pay How involved are line managers? Business Units vs. HR Empowered and Trained Line Managers

14 Improving Employee Engagement on Pay Communication Audience Specific Multiple Channels Value vs. Cost Complexity Destroys Value If they can t understand it they don t value it! Big Picture

15 Balance Financial Impact Linked to Business Drivers Reinforce Critical Business Behaviours Return on Investment Communicate Organizational Imperatives Reward Policies

16 Process Review cross only when car stops Did the review achieve its intended outcomes? Do our compensation policies needs to be reviewed? Were key milestones met? What can be done to improve the current review process? Test use satisfaction?

17 Key Milestones Review the Timeline Realistic Immovable Deadlines Areas for Improvement

18 Test User Satisfaction Who: Line Managers Senior Executives Human Resources Employees How: Surveys Focus groups Employee engagement survey Exit Interviews

19 Common Findings Presenting Clear Metrics to Senior Executives Controlling Line Managers Behaviour and Compliance Key Person Dependency Risk Burdensome Letter Production Risk of Inaccurate Communication

20 Time Consuming Preparation of Spreadsheets Maintaining Data Integrity and Security In-flight Control of Review Reporting and Analytics Dependency on IT Resource Access to Historical Data Common Findings

21 Next 3 Months Improve processes Review timelines Data clean up Harness information tools to make better compensation decisions Adapt policies Think strategically about your biggest operational expense Plan Early

22 The Case for Technology Ensure Rigorous Governance Strong alignment of pay and performance Empower Managers Strengthen Compensation Review Process

23 The Case for Technology Ensure Budget Compliance Provide Strong Reporting and Analytics Assure Data Integrity and Security Year Round Access and Control of Compensation Data

24 Example of Compensation Technology Product Features.

25 Questions Tom McKeown EVP of Sales & Marketing O:

26 Thank you For attending