Getting Total Rewards Right

Getting Total Rewards Right

bamboohr.com payscale.com



Mykkah HernerModern Comp Evangelist

Payscale

Ryan SandersChief Operating Officer

BambooHR



• Getting pay right matters• Competitive market



What are Total Rewards?



Building Total Rewards



Culture, Philosophy, Strategy, Benefits



Meaningful Benefits:• Financial Peace University• Paid Paid Vacation • Fido Friday



Base Pay



Variable Pay



• Incentive• Project Bonus• Retention Bonus• Signing Bonus• Perks

The variable pay umbrella.



69.0% 75.2% 69.3%47.0%

12.6%

Who gets bonuses?



What type of bonus?

15.8% 18.1%

61.8%

25.7%40.0%

14.4%



How frequently?

Monthly Quarterly Biannual Annual Ad-hoc4.9%

12.6%6.4%

66.6%

9.4%



Rewards & Recognition



Consider Individual vs. CollaborativeWhat are you reinforcing?



Consider Perverse Incentives

Earn recognition...or else.Everyone (read: no one) is

Special



Consider Two-way RecognitionCompany Life Cycle

Employee Contributions



Get Creative• Passes to sporting events• Catered lunches for winning

teams• Days off after big deadlines• Choice of work assignment• Development opportunities• Lunch with the CEO• Remote work



How can you tailor your rewards to your culture

and your workforce?



Workforce Characteristics• Generation• Life stage or lifestyle• Income and/or class• Urban and/or rural• Size of organization• Job function

https://www.bamboohr.com/webinars/diverse-workforce/



Baby Boomers · 1946 – 1964 · Size: 74MCommunication About Comp: Private

Average Tenure: 15 Years

Career Mindset: Loyal, Self-driven, High Work Ethic, Retirement

Generation X · 1965 – 1979 · Size: 66MCommunication About Comp: Semi-private

Average Tenure: 5 Years

Career Mindset: Pessimistic, Self-reliant, Work/Life Balance, Management

Millennials · 1980 – 1995 · Size: 74MCommunication About Comp: Public

Average Tenure: 18-24 Months

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



Low Med High

Med Low High

High High Med

High Med Low



Overall pay structure may differ based on pay goals.



High Rewards & Recognition

High Rewards & Recognition

Moderate Rewards &

Recognition

Moderate Rewards & Recognition

Moderate Variable High Variable Moderate

Variable Low Variable

Low Base Low Base High Base Moderate Base

High Equity Moderate Equity

Moderate Equity Low Equity

Mix of pay by life cycle



Tips for remaining competitive – or – how to

really make it work.



A note on fairness: Fair doesn’t necessarily

mean equal.

EqualFair

Differentiate Pay ByGeneration

Life stage or lifestyleIncome and/or classUrban and/or rural

Size of organizationJob function



of employees paid above market believe they’re paid at or below

80%

of employees are ok with low pay if the rationale is explained82%

of companies are confident in managers’ ability to have tough pay conversations

17%



The PayScale Pay Transparency Spectrum



Align to Results



Measure Outcomes



Follow BambooHR and PayScale on social media:

bamboohr.com/blog | payscale.com

Thank you!



Questions?BambooHR

Check out on-demand videos for Elevate at https://www.bamboohr.com/elevate/

Download our free eBook Pay Transparency Spectrum here: http://resources.payscale.com/hr-ebook-pay-transparency-spectrum.html

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Getting Total Rewards Right