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TalentTakeawayswebinar & podcast series
Insider Secrets to Ensuring a Successful Compensation Planning Cycle
Guest Presenter: Jean M. CasnerManaging Partner, Crescere HR
AGENDAThe Series
TalentTakeawayswebinar & podcast series
Talent Takeaways Series
AGENDAAGENDAThe Sponsor
Talent Takeaways Series
Talent Management Made for Managers
Compensation Planning Total RewardsStay Interviews
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Insider Secrets to Ensuring a Successful Compensation Planning Cycle
Jean M CasnerManaging [email protected]+1 201 787 0631
April 20, 2016 Simple HR Solutions @ Work
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Today’s TopicsI. Map the Current Process
II. A Failure to Plan is a Plan to Fail
III. If You Don’t Know Where You’re Going, How Can You Expect to Get There*
IV. Rules of the Road and Why They Matter…
V. Show Me the Money
VI. Continuous Improvement *Quote from Basil S. Walsh
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What You Will Learn
Key elements of a successful process:
• Documented process map
• Detailed project plan
• Cross-functional team
• Clear governance policy
• Updated salary planning system
• Clear and crisp communications
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I. Map The Current Process
Six Sigma Steps
A six sigma process is one in which the process is expected to be 99.99966% defect free.
Mapping Session Participants• Total Rewards
• HRBPs (at least 1 US HRBP and 1 Region/Country specific HRBP)
• HRIS
• IT
• Payroll /Shared Services
• Finance (Bonus/incentive accruals; scorecard process, etc.)
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Mapping Session Participants• Other Potential Participants
• CHRO
• Benefits
• Secretary to the Board of Directors (If Board approval required for program(s), etc.)
• Legal (draft legal documents for program(s), etc.)
• Executives, people managers and employees
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OutcomesSix Sigma Steps
A six sigma process is one in which the process is expected to be 99.99966%
defect free.
• Picture of the current process • Comprehensive timeline
• Resources involved
• Opportunities for improvement
• Steps that could be eliminated
• Highlights confusion regarding policies and practices
• Educational tool for new HR staff
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Seeing is Believing…
From This… To This…
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II. A Failure to Plan is a Plan to Fail
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Key Planning Steps• Start early – at least 8 months before “GO LIVE”
• Assign a project manager – ONE person who is accountable for the entire process
• Identify team members and define roles• Total Rewards• Performance Management• Talent Management• HRBPs• HRIS • IT• Finance• Payroll• Others, e.g., legal, tax, etc.
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Clear Governance
•Governance/approval process•Chief HR Officer (CHRO)•CEO or Go/No Go decision maker (may include BOD)
•Others…
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Governance Decision ToolsRA
PID
x Decision CEO Direct Reports to CEO Head of HR CFOExample Decision 1 D I R I
Example Decision 2 I R, P, X D, X R, I
R = Recommend A = Agree P = Perform I = Input D = Decide X = Explain
RACI
Create a Timeline
•Create a detailed timeline• Include all steps/handoffs during the process
•Start/finish dates
• Individual team members accountable for one or more specific steps in the process
•Regular meetings leading up to “Go Live” date
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III. If You Don’t Know Where You Are Going, How Can You Expect to Get There?*
*Quote from Basil S. Walsh
Considerations
*Quote from Basil S. Walsh 18
• Philosophy and/or program changes• Compensation management• Performance management• Talent management
• Market data availability
• Policy changes (if applicable)
• Communications, training needs and media
Action Items
*Quote from Basil S. Walsh 19
• Update salary planning software
• Obtain: • Company scorecard results
(if applicable)• Obtain Board of Director
approvals (if applicable)• Budget Approval - merit,
promotion, incentive/bonus pool, other adjustment, key talent, etc.
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IV. Rules of the Road and Why They Matter...
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Content/Instructions
• Deadlines and activities to be completed
• Budgets
• Important philosophies and policies• how promotions work• incentive/bonus awards
calculations, etc.
• Salary planning software training and access (salary planners only)
Expected Outcomes
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• Goals for the process
• Distribution of ratings (forced, targeted or otherwise)
• Merit awards based on pay for performance, etc.
• Market adjustments
• Key talent
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• Holdbacks
Planning Strategies
• HRBP global advance briefings
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V. Show Me the Money
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Prepare the Results
•Key metrics• Budget vs. actual spend
• Pay for performance message alignment - performance vs. compensation recommendations
• Global/Country results
• Other metrics
Present the Results
•Trends and headlines - executive summary
• Succinct• Compelling• Next steps
• Include:• Impact to the bottom line• Promotion results• Key talent impact
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Communicate the Results
•Communicate outcomes to people managers and employees• Company, department and employee results
• Employee scorecard• Difficult messages• Key Talent
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Continuous Improvement - Conduct an AAR (After Action Review)
• Conduct immediately after each year end process
• Focus on intended objectives
• All participants must contribute to the discussion
• Use open-ended questions
• Document all feedback
• Determine changes (if any) for the next cycle
• Communicate outcomes29
How Does It Work?
AAR Questions
• What was supposed to happen?
• What did happen?
• What went well?
• What needs to be changed?
• What should be done to improve the process next time?
• Closing comments (summary)
• Next steps30
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