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Company’s Quarterly Compensation Check-Upresources.payscale.com › rs › 417-NLK-080 › images › Webinar-Comp … · 2. Art 3. Science 4. Q&A. Ashley: First we’ll go over
IntroductionAshley Adair, PHR, SHRM-CPBenchmarking Lead
Jenni Marquez, CCPSr. Comp Professional
Presenter
Presentation Notes
Ashley: Welcome to our Job Matching webinar. My name is Ashley Adair and I’ve been with PayScale for 3 ½ years. I manage our Benchmarking / Job Matching team. I have my PHR and I’m on track to complete my CCP by December of this year. Jenni: My name is Jenni Marquez and I’ve been with PayScale for just over 3 ½ years as well. I am on our Insight Expert team and a certified compensation professional.
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Job Matching for compensation planning
and strategy
Presenter
Presentation Notes
Jenni: Our topic today is Job Matching. We’ll be providing you some guidance on job matching best practice to ensure the information you receive from PayScale is helpful for your compensation planning.
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Agenda1. Basics2. Art3. Science4. Q&A
Presenter
Presentation Notes
Ashley: First we’ll go over the basics of job matching, talk about the art and science pieces, and finally execution in our product. There will be time at the end of the webinar for Q&A so as we go through, if you have a question, write it down and we’ll ask about those at the end.
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The Basics
Presenter
Presentation Notes
Ashley: First on our agenda is the basics, think of this as Job Matching 101.
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Benchmarking:Defining your workforce through job matching, market information, and your organization’s overall strategy.
Presenter
Presentation Notes
Ashley: The broader concept is…(read the slide)
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A benchmark job remains consistent across diverse organizations, allowing employers in various companies and even different industries to use it as a basis for evaluation and comparison.
Presenter
Presentation Notes
Ashley: Ok, let’s talk about what a benchmark job is (read this). A benchmark job is commonly found. The good new is that PayScale happens to have enough data (titles/skills) to benchmark more jobs than you'd get access to in a traditional survey. We are able to match more unique jobs then other surveys.
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Job matching is part of the benchmarking process.
Job matching is the process by which you choose which factors are compensable for the job.
Presenter
Presentation Notes
Ashley: So where does Job Matching fit into the benchmarking process? Job matching is the process by which you choose which factors are compensable for the job. To get the full benchmark, you will also need to define a market and have a target percentile in mind. For more information on defining markets, please see our webinar on Labor Markets or reach out to your Customer Success Manager.
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40 Million Salary Profiles250 Compensable Factors
10 Org types 350 Industries 14,000 Positions
The World’s Largest Salary Database
Presenter
Presentation Notes
Jenni: We are the creator of the largest database of individual compensation profiles. This is data we’ve been collecting over the last 10 years, it’s available to you in real time, and we currently have just north of 40 million salary profiles. Along with that, we have tools available to help you work with that salary information. PayScale gives you and your team the opportunity to drill in on how you price your positions to market – to similar jobs, in organization where you compete for talent, and so forth. The idea here is that you can use this robust data to make more strategic decisions around compensation, which is a big part of the organization’s success.
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Apples to Apples
To get the best data, you need to make sure that the job in your workforce matches up with task list of the PayScale title you choose.
You can proceed with confidence if 70% or more of the tasks align with your job.
Presenter
Presentation Notes
Jenni: Benchmarking is a point of comparison. To ensure you are making the best match possible and that it’s an apples-to-apples comparison, focus on the tasks associated with the PayScale title rather than the title itself. If the list of tasks matches 70% or more of what you expect from your job, then that’s considered a good match by PayScale best practice.
www.payscale.com
Match jobs, not peopleMatch Jobs, not People
Presenter
Presentation Notes
Jenni: Just a friendly reminder, you want to focus on what your organization needs for the job rather than the skill set of the current incumbent. Matching by person requires a rematch every time the job turns over. And really, the point is to price what organization needs and wants to pay for, not the skill set of your current employees.
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Compensation: Both Art & Science
Presenter
Presentation Notes
Jenni: Compensation truly is both art and science. The data or science is just one piece of the lager picture. As you proceed with job matching, keep in mind the unique needs of your organization. How you use the data is going to depend on what you are trying to achieve with your compensation plan.
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The Art
Presenter
Presentation Notes
Ashley: The art piece is subjective to the needs of your organization and your strategy. The good news is the sky is the limit, but that’s also the bad news. You’re the expert on what works best for your organization and what will be successful.
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What is the essence of this job?
Presenter
Presentation Notes
Ashley: As you dive into your job matching, the first element is determining what is the essence of the job. Disregard your internal title as it might be different from what is in the PayScale database. The key to unlocking your 70% match is understanding the critical aspects of your job that you want to pay for. At PayScale, my team determines the essence of the job by analyzing job documentation, typically job descriptions.
“I don’t have all of my job descriptions
together yet. I’m still working on them!”
Presenter
Presentation Notes
Ashley: You might be in the process of rewriting them, you might not have them. It’s ok – don’t panic!
To match jobs in PayScale, you don’t need to have the
same long JD that you’d use on your career site.
You just need to know the key compensable factors.
Presenter
Presentation Notes
Ashley: To match jobs in PayScale, you don’t need to have the same long JD that you’d use on your career site . You just need to know your key compensable factors.
www.payscale.com
Presenter
Presentation Notes
Jenni: Ok, let’s jump into how to create a new report. From your dashboard/landing page, on the right under Market Data you have the option to create a new report.
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Presenter
Presentation Notes
Jenni: Once you click create a report, you will be prompted with two options. If you are current customer with data already loaded into the system, you will be asked whether this report will include an existing job or if you want to create a new match. For our purposes, we’re going to create a new one.
www.payscale.com
Presenter
Presentation Notes
Jenni: The first few fields at the top are for your internal information. If your company uses Job Codes, go ahead and enter that information, otherwise you can use the internal title as the job code. There is also an option to include your salary grade, if you have one. The main focus of this first page should be the PayScale Job Title section, just below. Using the search box, you can enter keywords and search by job title or by task list to find a corresponding match. As you begin typing, a list of options will appear below the search box. If you are unsure what to type, a good starting place is your internal title.
www.payscale.com
Searching by Title
“Also Known As”: similar titles for the same job
All of the data from “Also Known As” roles is ‘rolled up’ into the main title
A rose is a rose is a rose….
Presenter
Presentation Notes
Jenni: A couple important things to keep in mind when searching by title. First, relying solely on your internal title and finding an exact match to that same title in PayScale is not always enough. As we alluded to earlier, it’s important to keep in mind the core responsibilities of your job and how it relates to other jobs in the market. Consider a common title like Office Manager. Company A’s Office Manager is responsible for bookkeeping, payroll, and facilities maintenance. Company B’s Office Manager sits at the front desk, greets customers, and orders office supplies. So ask yourself – is your Office Manager responsible for the overall operations of your business? Or do they answer phones and order office supplies? You may need to search for a title that is dissimilar from your internal title, and that’s ok. Second, consider what similar titles exist in the marketplace for the same job. PayScale tracks these trends and provides you a list of “Also Known As” (or AKA) titles below the main title.
www.payscale.com
Presenter
Presentation Notes
Jenni: When searching by your internal title, you may see a PayScale title appear that has your internal title in the AKA section. This means that our system considers your job and the main PayScale title to be one in the same. You can think of the AKA section as a bucket. As you can see on the example here, Administrative Secretary is listed in the AKA section under Administrative Assistant. This means our database considers these two titles to be synonymous and representative of the same core set of responsibilities. So if you call your position Administrative Secretary and the list of tasks under Administrative Assistant look correct, then you can choose that PayScale title with confidence.
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Tips & Best Practices:• When searching; less is more! • A “good match” is when 70% or greater of the
task list aligns with the job in question• You cannot edit job tasks• Consider flipping your search around
• example: Director of Sales vs. Sales Director
Presenter
Presentation Notes
Jenni: Other things to consider when searching by title for a match Use fewer keywords, especially if you have a long internal title As we mentioned, if 3 of the 4 bullet points in the task list line up with what you expect from the job, then that’s a good match You cannot edit the task list, but you can expand upon it by adding skills on the second page, under compensable factors When all else fails, try reversing your search terms (as seen here). Or try removing or adding “of” to your keywords.
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Job Matching by Tasks
Presenter
Presentation Notes
Ashley: The second search option is searching the PayScale database by tasks.
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Careers at OurCompany, LLC
ROLECode NinjaSocial Media MavenDirector of First ImpressionsVP of Misc. StuffDesign SherpaAmbassador of BuzzDigital ProphetCustomer Evangelist
LOCATIONSeattle, WASeattle, WASeattle, WASeattle, WABoise, IDBoise, IDBoise, IDRichmond, VA
Sometimes you can’t go by title
Presenter
Presentation Notes
Ashley: You will see here some really unique internal job titles that likely aren’t found in other organizations. Searching by tasks could be a better way to find a match for these types of jobs, especially if you are unfamiliar with what the job does. Let’s dive into an example
www.payscale.com
Presenter
Presentation Notes
Ashley: So here you’ll find a unique Job Title – Director of First Impressions. Let’s pretend we search for this title in the PayScale database. As you can imagine, this title is not a common title and therefore not in our system. What we do know about this job is that it is customer focused and they greet customers.
www.payscale.com
Presenter
Presentation Notes
Ashley: And so we will click search by tasks, and proceed to enter greet in our search bar. As you will see, many results will appear for jobs where greeting customers is common. This is an actual title that our team was able to match using our PayScale best practices. And we ended up matching it to Administrative Assistant after further analysis. As you can see, there is a lot of interpretation and translating that goes into the job match process. That’s the art piece!
www.payscale.com
The Science
Presenter
Presentation Notes
Jenni: The science piece is all about the data. We know that there is a true market value for every job. To quantify that market value, we need to look at the critical responsibilities and requirements for the job – these are often referred to as the “compensable factors.”
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What are the compensable factors for this job?
Presenter
Presentation Notes
Jenni: Compensable factors are the details about the job that influence how the job is paid. Common compensable factors include years of experience, degree level, skills and certifications. Unlike other salary surveys, the benefit of using PayScale’s system is you have the ability to drill down even further by looking at other factors that impact pay like sales quota, management responsibilities, or travel requirements. Being as specific as possible when defining your compensable factors is the key to getting the right data for your job.
www.payscale.com
The Blue Number
Presenter
Presentation Notes
Jenni: We could not do this webinar without talking about the Blue Number. If you’ve done any matching in PayScale, you’ve definitely seen this number and if you haven’t, we’ll show you an example in a moment. The blue number appears once you’ve selected a PayScale Title and you move to the second page of the job match, where you start entering your compensable factors. Because the blue number is the first thing you see on the second page, it can sometimes cause skepticism, especially if it’s not the number you were expecting to see. Let’s talk about how we get the blue number and what it means for you when matching.
www.payscale.com
Presenter
Presentation Notes
Jenni: Back to our Administrative Assistant example, we’re on the second page of the job match, and on the right – big and bold – is the blue number. The purpose in having this number here is to give you a sense of how your compensable factor choices are influencing pay for your job. The number shown reflects an estimate of the 50th percentile of whichever Labor Market is shown in the dropdown menu. In our case, the current selection is Technology HQ. You can use the dropdown menu to look at another market, especially if your job exists in another location. The blue number is dynamic and will change as you enter in factors like experience, education, etc. In this example we have yet to enter any compensable factors so the number is strictly based on the PayScale title we selected and the market shown in the dropdown. The other compensable factors are being averaged for all possible answers. Until you fill in a compensable factor field, the system treats the answer as “any” vs. “none.” The key here is to take the blue number with a gain of salt – it’s meant to guide you as you are entering in details for the job.
Years Experience
Presenter
Presentation Notes
Ashley: You will notice that the years of experience section has two fields – years minimum and years experience in field or career. This is often confusing because when referencing job descriptions, you may be used to working with minimum requirements. In our tool, we utilize career or field experience – what that means is how many years of experience would it take for someone to reach full proficiency in the job. In other words, it all counts. Take an Accounting Manager – we would typically enter 8-12 years for years experience. How did we get there? If you think of the typical career path for a Accounting Manager, they probably start out as an Accounting Clerk, maybe they take a job as an AP Coordinator, after that perhaps the move into a supervisory accounting job, and from there they become an Accounting Manager. If you add up all of those years of experience, you will probably end up with something between 8-12.
www.payscale.com
Presenter
Presentation Notes
Ashley: Taking a look at the Director of First Impressions years of experience, they require 1-2 years of administrative work. We would likely enter 3-4 in our years of experience, because we anticipate that it will take a few years for a new hire to become fully proficient in the job. Don’t match to the minimums! ----- Meeting Notes (8/11/15 09:58) ----- flip slides
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Tips & Best Practices:• Our tool uses career experience, not minimums• Getting Years of Experience (YOE) correct is key
to a good match• How many years would it take for someone to be
at ‘full proficiency’ or to ‘hit the ground running’
Presenter
Presentation Notes
Ashley: To wrap up, things to remember about years of experience. It’s full proficiency, not minimums It is one of the most influential compensable factors If you get stuck on what to enter, think about the career path and how much ramp time a new hire would need
Ashley: So here we have our PayScale best practice years of experience chart. You will notice there are ranges associated with each job level. There is not an absolute answer – it really depends on where your organization is at in your company lifecycle. Use this as a guideline if you’re unfamiliar with the job.
Typical Education
Presenter
Presentation Notes
Jenni: When you select an education level, the system models your results around that degree, effectively narrowing your search. So, if you select high school diploma, the system will search for profiles with just a high school diploma, effectively limiting your search. If you want to see “HS Diploma and above” choose “Any education”, which will take a weighted average of all levels of education reported.
www.payscale.com
Presenter
Presentation Notes
Jenni: As you review your job description, consider the difference between your minimum requirements and preferred qualifications and focus on the education level you’d prefer for the job. For example, if you would hire someone with a high school diploma but would ideally like to see candidates that have their bachelor’s degree, then you should select bachelor’s degree. In this example, the preferred qualification in Associates Degree. You could either choose “Any” degree which will consider all education levels HS Diploma and above or you can choose Associates Degree, which will focus in your results on profiles that have an Associates Degree.
www.payscale.com
Tips & Best Practices• Match to the preferred education level
• No preference? Select “Any”Selecting anything lower limits the data
Presenter
Presentation Notes
Jenni: We just talked through these, but as a reminder, it’s best to select the preferred education level rather than the minimum requirement for the job. If you are unsure or don’t have a preference when it comes to education, select “any” and the system will take weighted average of all education levels. Weighted average means that if 50% of the market holds their bachelor’s degree for the job you are pricing, then your results are going to be heavily influenced by (but not exclusive to) profiles with a bachelor’s degree.
Job & Management Responsibilities
Presenter
Presentation Notes
Jenni: If the job you are matching has supervisory responsibilities, you will want to select “Yes” from the supervisory role dropdown. A new set of compensable factors for supervisory jobs will appear. As mentioned before, leaving any of the details blank means the system will consider all possible entries rather than none or zero. For Number Supervised, you want to include the total number of direct and indirect reports. So if you are matching a CEO job for a 200 person company, then the number supervised would be 199. For Highest Level Manager, select one of the options from individual contributor up to Senior Management. As an example, let’s say your job oversees over individuals, supervisors, and managers. Then the highest level managed from that group is likely “Middle Manager.” For the People Management Tasks, select all that apply. Keep in mind that if your supervisors, managers, or directors are involved in making pay decisions for those they supervise (even if they’re not the final decision maker) you will want to select “Set Pay.” The same rule apples with Hiring and Promotion – if they’re involved in the conversation, include that as a task.
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Tips & Best Practices• Number supervised includes both direct and
indirect reports
• Even if they are not the ultimate decision maker, if the job is involved with any of the management responsibilities, check the box
Presenter
Presentation Notes
Jenni: Again, we just covered these, but as a recap – Number Supervised should include all direct and indirect reports. If you are pricing a Branch Manager job with multiple incumbents and each manager has a different number of direct/indirect reports, you can either enter the highest number of employees the job could manage, an average of the number of employees managed, or leave the field blank to consider all possible answers. And as a reminder, even if your supervisor doesn’t make the final call on hiring decisions, terminations, or pay for their direct reports, if they can make recommendations on those decisions then make sure to check the corresponding boxes.
Typical Skills
Presenter
Presentation Notes
Ashley: When trying to select skills, there is a maximum of seven skills you can choose. You can select the orange links in the popular answers below the search box or you can search for a skill by using keywords and entering that in the search bar. ----- Meeting Notes (8/18/15 09:27) ----- Do another slide with a popup
Typical Skills
Presenter
Presentation Notes
Ashley: For the popular answer, you’ll notice the arrows next to each group indicating how the skill influences pay. Really important to note these are estimates based on national data and the skill may have a different impact on the data for your job in your market. This should be used as a reference point for commonly selected skills in conjunction with this title. It’s important to make sure you focus on the skills needed for your job, rather than the popular answers. ----- Meeting Notes (8/18/15 09:27) ----- Do another slide with a popup
Financial Reporting Budget Management
Financial AnalysisAccount Management
Accounts PayableAccounts Receivable
ADP Payroll SystemBookkeeping
Customer ServiceGeneral Ledger Accounting
Human ResourcesExcel
Month-End ClosePayroll Administration
QuickbooksTax Preparation
Windows Operating SystemSAP Financial Accounting and Controlling
Account Management BillingCollections
BankingBookkeeping
Data EntryData Processing
Presenter
Presentation Notes
Ashley: We have here a lengthy list of possible skills for your typical Accounting/Finance jobs. Some of you may have a job that does all of these things. How do you narrow down the list to seven or less skills? Here are some things to keep in mind: A skill is something that is obtained through education or experience – it’s important not to confuse this with daily tasks You want to select the highest level of skill necessary for the job Avoid choosing skills that are assumed based on job level – Accounting Managers should know how to use Excel, so you don’t need to select that Skills section is also a good area to capture oddities in jobs or get very specific by drilling down on the software needs of the job
Financial Reporting Budget Management
Financial AnalysisAccount Management
Accounts PayableAccounts ReceivableADP Payroll System
BookkeepingCustomer Service
General Ledger AccountingHuman Resources
ExcelMonth-End Close
Payroll AdministrationQuickbooks
Tax PreparationWindows Operating System
SAP Financial Accounting and Controlling Account Management Billing
CollectionsBanking
BookkeepingData Entry
Data Processing
Presenter
Presentation Notes
Ashley: For this example, we’ve pulled out the critical skills necessary for the job. If this job only needs 2-4 skills, that’s ok, you don’t need to enter 7.
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Tips & Best Practices• Skills are not job tasks
• Pick 3-5 of the highest level skills of the job
• Use skills to capture oddities in jobs
• Note software the job uses (except MS Office)
• New skills are constantly added
Presenter
Presentation Notes
Ashley: Read the list. The great thing about our database is it’s constantly being updated. As new skills/software are development, once they pass our quality thresholds, they are added to the system.
Typical Certifications
Presenter
Presentation Notes
Jenni: You can choose from the list of popular answers or, if you don’t see the certification you need, you can search for it in the search box. You can choose up to seven certifications. Certifications to include should be those you prefer or are required for the job. And keep in mind that if you require that employees obtain some type of certification after they’re hired, you want to include that in your match, as that defines a fully proficient employee. Another important consideration relates to similar certifications – it’s best to just select the higher level certification rather than entering both. For example, if you would hire a LPN or an RN, just select the RN certification. The same would be true for PHR or SPHR.
Typical Certifications
Presenter
Presentation Notes
Jenni: Similar to Skills, the certifications section has a list of popular answers and is often categorized along how the certification influences pay for the job. Keep in mind, again, that these categories regarding how a certification impacts pay are based on nationwide numbers and may not be true for your market.
www.payscale.com
Tips & Best Practices
You don’t need to choose just one, if they certifications are differentExample: PHR vs. SPHR
Presenter
Presentation Notes
Jenni: Feel free to include any certifications relevant to the job that the company would be willing to pay more for. Some certifications have a bigger influence on pay than others so it may not always be that including a certification will increase pay for the job. And remember that as long as the certifications are different, go ahead and enter them. When choosing between similar certifications, choose the higher level certification (or the one you prefer/want to pay for).
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What about Hybrid Jobs?
Presenter
Presentation Notes
Ashley: What about hybrid jobs? We all have those unique roles in our organization where someone is performing multiple roles or enhancements of their current role. How do we go about matching those jobs in PayScale?
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Benchmark to the higher level job
Example: You’re hiring an accountant who can also be a receptionist, not a receptionist that will also do accounting work.
If they left, you’d be hiring an accountant.
Presenter
Presentation Notes
Ashley: Our default best practice is to benchmark to the higher level job. The reasoning behind this is because you need to pay for those higher level skills the job needs. For example (read).
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If someone has responsibilities under two different, similarly paid roles, benchmark to the job they do most often.
Then add skills and certifications that encompasses the secondary role
Presenter
Presentation Notes
Ashley: Another option if someone is performing two jobs of a similar level, then (read slide). This is a great example of using the skills and certification section to round out a role.
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But this really is a hybrid job!
If you know the jobs, and you know the weighting, PayScale has a calculator that will do the heavy lifting.
Presenter
Presentation Notes
Ashley: Ok, ok, I believe you! There is a hybrid job calculator available in the Ad-Hoc section of Insight. This involves creating two different reports and then using the calculator to blend the two reports based on weighting. Some things to note before using this tool – it does not come with any compensation influencer chart or analytics and you cannot tie an employee to the report. It should primarily be used for information gathering. If you need further assistance using the hybrid calculator, contact your Customer Success Manager. ----- Meeting Notes (8/18/15 09:27) ----- If this is really hybrid, and you know the weighting, we have a calculator. Add a non-benchmark job slide. It's an odd job. And that's okay! There's probably no one else in the market doing that kind of work. Don't force it. Talk to your CSM lot the job within your pay structure. Marshmallow Farmer slide with benchmarking definition
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Non-benchmark jobs
It’s an odd job. And that’s okay!
Presenter
Presentation Notes
Jenni: With such a robust database and over 14,000 PayScale titles to choose from, it’s hard to image not finding a match for your job. But that definitely does happen and that’s ok! As we discussed with hybrid jobs, the combination of work being done by a single incumbent may be so unique that there is no one else in the market doing a similar blend of work. When that is the case, it is PayScale best practice to classify the job non-benchmark and slot it into your pay structure based on it’s internal value vs. market data. Consider how the job relates to other jobs in the company and that will help guide you on determining the grade or range for your non-benchmark job. When in doubt, feel free to contact your Customer Success Manager for help.
www.payscale.com
A benchmark job remains consistent across diverse organizations, allowing employers in various companies and even different industries to use it as a basis for evaluation and comparison.
Remember:
Presenter
Presentation Notes
Jenni: Remember, a benchmark job is one that is commonly found in the marketplace. We can compare pay for that job across multiple businesses because it is a common denominator. PayScale’s database covers a lot of what traditional survey sources would consider “other” or “non-benchmark” jobs. That said, it doesn’t mean we have every possible title (or combination of titles) that may exist at a company. The key here is you don’t want to force it – if you’re not able to find an appropriate 70% match, that’s ok! You can still establish a range for the job and fit it into your structure – you will just be relying on internal valuation vs. market data.
www.payscale.com
Tips & Best Practices• Unanswered or blank compensable factors are
considered “any” NOT “none.”
• Pay for the preferred skill.
• What’s the fail factor?
• What do you value more? Benchmark for that.
Presenter
Presentation Notes
Jenni: Again, an important reminder when matching jobs in PayScale. Any blank compensable factor will look at all possible answers – not “none.” If you aren’t sure what the travel percentage is and you leave that field blank, when the system generates a report it is going to look at all possible answers to travel percentage. If you want the report to not factor in travel, then you need to enter 0% as the travel percentage. Also, remember to match to the preferred or higher level skills for the job. For hybrid jobs, consider the fail factor – if it’s a combination Payroll Manager and Receptionist, is it a bigger deal if they miss payroll or miss greeting a customer? Ultimately, when matching a hybrid job, it is PayScale best practice to match to the job that is valued more by the company – it is likely also valued more in the market! In the Payroll Manager/Receptionist example, consider whether you want to impede the employee’s earnings by blending their job with Receptionist data, which will likely pull the numbers down. Especially if they could be a full time Payroll Manager elsewhere.
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Q & A(we’ll email this out)
Presenter
Presentation Notes
Jenni: Alright, now we’d like to open things up for questions. There is a chat box below where you can type in your question to Ashley and me. We’ll give you the next few minutes to type in your questions and then we’ll read them to the group and answer them.
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