5 Steps to Building a Modern Compensation Plan
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1 5 Steps to Building a Modern Compensation Plan Diane Schuman Customer Training Specialist Krystal Praast Compensational Professional II
2 Hi, We re PayScale! 15,000 Positions 6,000 Customers 2,300 Skills 54 Million Salary Profiles 250 Compensable Factors /cbpr
3 Diane Schuman, CAPM Customer Training Specialist Krystal Praast, CCP Compensation Professional II
4 What are the benefits of having a comp plan? Fairness Communication Alignment
5 Elements of a Comp Plan Philosophy Strategy Guidelines (eg pay ranges) Policies Processes
6 have a compensation strategy. 34% are developing one. have done a market study in the past year. 25% in the past six months have no compensation structure (ranges, grades, etc) Source: PayScale s 2017 CBPR
7 1. Lay the Groundwork
8 Gain Buy-in From Executives
9 Develop a Clear Compensation Philosophy If You Believe Employees Are Your Most Valuable Asset Pay Fairly If You Have a Fast-Paced Organization Examine Pay Frequently If You Value Open Communication Prove It If You Give Your Managers Autonomy Support Them
10 Start Getting Your Jobs in Order
11 2. Define Compensation Strategy
12 Where Do You Compete For Talent? One Talent Market Multiple Markets Industry: IT Services Size: 200 EEs Location: Seattle, WA Industry: IT Services Size: 200 EEs Location: Seattle, WA Industry: IT Services Size: 10,000 EEs Location: Seattle, WA
13 How competitive do you have to be? What do you want to reward?
14 3. Select Market Data Source(s)
15 Comp Data Landscape for Employers Traditional surveys Industry surveys Data aggregators HRIS or internal data Government data Crowdsourced data Scraped data
16 Traditional and Industry Surveys Source:
17 Crowdsourced
18 Make sure it covers your data needs Breadth Age Precision Ease
19 4. Set Pay Guidelines
20 Pay Guidelines Minimum Range Midpoint Maximum $20,000 $32,000 $26,000 Green-Circled Employees Red-Circled Employees
21 Pay Ranges vs. Pay Grades Range: A min, mid, and max assigned to a job Grade: Multiple ranges are arranged mathematically, jobs are assigned to grades Min Mid Max $20K $32K $26K
22 Assign Jobs to Grades Match market value with nearest midpoint Adjust for internal alignment
23 Determine the Shape of Your Structure
24 5. Implement the Plan
25 The PayScale Pay Transparency Spectrum
26 Develop Policies & Processes Policies: Increases New Hire Promotion Outliers Eligibility Processes: Adding or evaluating a job Market Study Budget Increase cycle New hire process (pay) Promotion process
27 Immediate Actions Clarify business goals and priorities to align comp Identify culture aspects to amplify with comp Start tracking where you recruit from or lose people to Familiarizing yourself with data sources that cover your needs Build pay ranges for your top 10 jobs
28
29 You will get from Compference: Product Sessions Customer Presentations Peer Networking Breakout Sessions Phenomenal Speakers PHR/SPHR recertification credit Ask about a discount code!
30 Comptopia: A PayScale Community CONNECT with more than 700 like-minded compensation and HR professionals PARTICIPATE in an active discussions forum covering everything from comp plans to current events LEARN best practices and product tips from power users and PayScale experts alike EARN perks, points, and exclusive swag available only to Comptopians JOIN today ask me for a link to sign up
31 Questions?
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