The Top Comp Trends of 2016

Paige Hanley, CCPManager, Customer Operations

Jenni Marquez, CCPSenior Compensation Professional

#CompTrends2016

www.payscale.com#CompTrends2016

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Jenni Marquez, CCPSenior Compensation Professional

https://www.linkedin.com/in/jennimarquez

Paige Hanley, CCPManager, Customer Operationshttps://www.linkedin.com/in/paige-hanley

#CompTrends2016

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Major trends of 2016

Should I hop on that train?

Looking forward to 2017

Things to do today

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Major Compensation Trends

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Compliance

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FLSA

Minimum Wage

Others

Gender Pay Equity

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48/50 States have some version of a pay equity law on the books

9/10 Provinces* have some version of a pay equity law on the books

4 states added pay equity laws, 9 in progress

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Mix

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What is the Right Compensation Mix?

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The variable pay umbrella

Incentive

Project Bonus

Retention Bonus

Signing Bonus

Perks#CompTrends2016

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What type of bonus?

15.8% 18.1%

61.8%

25.7%

40.0%

14.4%

Retentionbonuses

Hiringbonuses

Individualincentivebonuses

Teamincentivebonuses

Spot bonusesor other

discretionarybonus

programs

Other (pleasespecify)

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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

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Performance

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44% of companies said

shifting from traditional performance reviews

in favor of real-time feedback

When asked what would shake up the HR world most in 2016…

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Align to business goals & cycles

Pay for results

Get creative

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Linking Pay to Performance

Culture and perks that reward high performers

Higher increases for top performers

Results-based incentive plan

Performance-based rewards & recognition

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Market

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Greater awareness of market

2.5% Oct unemployment for college educated 25+

29% Pay boost commanded by premium skills like Scala

60% Of employees who feel underpaid intend to leave

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Use market data and strategy to drive comp decisions

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EqualFair

A note on fairness:Fair doesn’t necessarily mean equal

Differentiate* Pay by

Performance

Results

Experience

Skills

Education*Be aware of legal restrictions

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Transparency

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TOP-PERFORMING

of Top-Performing companies are transparent about pay

47%

Vs 40% of all companies

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The PayScale Pay Transparency Spectrum

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of employees are ok with low pay if the rationale is explained

82%

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

80% of employees paid above market believe they’re paid at or below

17%

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Should I hop on that train?

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It’s not a best practice if it’s not best for

your organization

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Baby Boomers 1946 – 1964 Size: 74M

Communication

About Comp:

Private

Average Tenure:

15 Years

Career Mindset:

Loyal

Self-driven

High Work Ethic

Retirement

Generation X 1965 – 1979 Size: 66M

Communication

About Comp:

Semi-private

Average Tenure:

5 Years

Career Mindset:

Pessimistic

Self-reliant

Work/Life Balance

Management

Millennials 1980 – 1995 Size: 74M

Communication

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

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FiveGenerations

of 2020

Gen Z

Millenials

Gen X

Baby Boomers

Traditionalists

Bureau of Labor Statistics Employment Projections

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Pay structure may differ

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Consider

org culture and valuesworkforce preferences

industry or regional normsjob level and/or function

company life cyclebudget…

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What can we expect?

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Oval office to your office…

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CompliancePerformanceTransparency

MarketMix

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Things to do today

• Celebrate 2016 accomplishments• Sign up with state and local compliance lists• Audit your performance practices• Decide what and how much info to share• Complete a market study • Evaluate your mix of pay

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Jenni Marquez, CCP

Senior Compensation Professional

Paige Hanley, CCP

Manager, Customer Operations

www.payscale.com

#CompTrends2016