Scary, Ugly, Nasty Compensation Questions You Fear the Most. Tom Hill

Transcription

1 Scary, Ugly, Nasty Compensation Questions You Fear the Most Tom Hill

2 Tom Hill Client Partner, Sales Effectiveness & Rewards Chicago, USA Tel: Delivering results for clients Mr. Hill led a global project for the sales force with an industrials company to assess and build a new organization structure, workforce planning, role definition, and incentives. He also led an engagement with a major fast moving consumer goods organization to add consistency to its compensation processes. With his team, he developed a global system to assist to compensation, career pathing and organizational development. Using their go-to-market strategy as a foundation, Mr. Hill led a project with technology firm to clarify sales roles and design incentive programs globally. Expertise Mr. Hill is a Client Partner for Korn Ferry Hay Group, based in the firm s Chicago office. He is also the practice leader for sales effectiveness. Mr. Hill has deep experience in sales effectiveness, role analysis, broad-based rewards, incentive design, international compensation, organization design and competencies. He has supported a number of organizations across all major sectors, including: consumer, industrials, financial services, life sciences and technology. Prior to joining Korn Ferry Hay Group in 2008, Mr. Hill spent eight years focusing on human resources at PwC and Prudential Financial. Academic and Professional background Mr. Hill holds a bachelor of arts degree in business management from Wittenberg University in Springfield, Ohio and a master of business administration from Loyola University Chicago. He also has a World@Work Sales Compensation Professional designation Korn Ferry. All rights reserved 2

3 A total approach to talent Three Lines of Business Founded in ,000+ colleagues 12,000 clients globally Assessment data on 3M professionals 100,000 people developed in our leadership programs each month Reward data on 20M professionals Partner to 93% of FORTUNE 100 Experts on Organizations & People ORGANIZATION STRATEGY EXECUTION AND ORGANIZATIONAL DESIGN TALENT STRATEGY AND WORK DESIGN REWARDS AND BENEFITS PEOPLE ASSESSMENT AND SUCCESSION EXECUTIVE SEARCH AND RECRUITMENT LEADERSHIP DEVELOPMENT 2017 Korn Ferry. All rights reserved 3

4 Let s go!

5 Here s the Game board My Job Is Bigger than Your Job Regressing Toward Excellence It s Lonely at the Top You ll Get Nothing and Like It What Were They Smoking? $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $300 $300 $300 $300 $300 $400 $400 $400 $400 $400 $500 $500 $500 $500 $ Korn Ferry. All rights reserved 5

6 Regressing Toward Excellence If a company says that it is world class and wants to attract the best talent, how can it justify targeting base salaries at median? 2017 Korn Ferry. All rights reserved 6

7 You ll Get Nothing and Like It Managers want to know specific market data for each of their jobs. Do I tell them no, or try to get survey data? For how many jobs? 2017 Korn Ferry. All rights reserved 7

8 My Job is Bigger than Your Job What grade do I put a job in if the market data suggest a different grade than the job evaluation results? 2017 Korn Ferry. All rights reserved 8

9 It s Lonely at the Top How do you justify paying the CEO of the Company 400 times the median employee? A. Because that s marketplace practice B. Because that is what the job is worth to us C.We don t necessarily want to pay these levels, but what choice do we have? 2017 Korn Ferry. All rights reserved 9

10 Regressing Toward Excellence How do most organizations determine their salary increase budgets? 2017 Korn Ferry. All rights reserved 10

11 You ll Get Nothing and Like It With minimum wage increasing to up to $15 what will you do with my pay to recognize my tenure and contribution? 2017 Korn Ferry. All rights reserved 11

12 You ll Get Nothing and Like It We just initiated an unlimited vacation policy. Why did the company all of a sudden get nice? or are there sinister motives behind this? 2017 Korn Ferry. All rights reserved 12

13 What Were They Smoking? How does a company know if their compensation programs are effective? 2017 Korn Ferry. All rights reserved 13

14 You ll Get Nothing and Like It How do you provide pay increases to high performers who are already paid high in their salary range or above range maximum? 2017 Korn Ferry. All rights reserved 14

15 What Were They Smoking? We just did an equal pay audit and we need to make some gender based pay adjustments. Should we call this out as an equity adjustment? 2017 Korn Ferry. All rights reserved 15

16 My Job is Bigger than Your Job If people are a company s most important asset, why is the CFO always graded higher than the CHRO? 2017 Korn Ferry. All rights reserved 16

17 You ll Get Nothing and Like It Joe & Sue are equal in all respects. Sue is a flight risk. Joe is not. Should we increase her pay over Joe s? 2017 Korn Ferry. All rights reserved 17

18 My Job is Bigger than Your Job Why is it almost impossible for an expert to have a higher grade than its manager? 2017 Korn Ferry. All rights reserved 18

19 Regressing Toward Excellence My pay is at the minimum of my salary range with a 3 % annual raise, how will I ever get to market target/midpoint? 2017 Korn Ferry. All rights reserved 19

20 What Were They Smoking? Should I post what our salary ranges are for all to see, or is that just opening Pandora s box? 2017 Korn Ferry. All rights reserved 20

21 What Were They Smoking? Our company has a pay for performance philosophy but we just got rid of performance ratings. How is that going to work? 2017 Korn Ferry. All rights reserved 21

22 What Were They Smoking? The best companies do get input from their employees on compensation program design, right? 2017 Korn Ferry. All rights reserved 22

23 Your Scary, Ugly, Nasty Questions?