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The Pay Transparency Spectrum
Mykkah Herner, MA, CCPModern Compensation Evangelist
Rita Patterson, CCPManager, Customer Education
#TalkPay
www.payscale.com#TalkPay
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Rita Patterson, CCPManager, Customer Education
https://www.linkedin.com/in/rita-patterson-ccp-5b039812
Mykkah Herner, MA, CCPModern Comp Evangelist
https://www.linkedin.com/in/mykkahherner
#TalkPay
www.payscale.com
Why Transparency?
The Pay Transparency Spectrum
Tips for Increasing Transparency
Getting started
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Why Transparency?
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PERCENT OF RESPONSES
LOW AVERAGE HIGH
50% 31% 19%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
1 2 3 4&5
% Responses with Intent to Leave % Responses with High Satsifaction
Transparency is linked to satisfaction
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Transparency
Trust
Results!
Engagement
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Transparency drives results
Study: https://hbr.org/2014/11/cooks-make-tastier-food-when-they-can-see-their-customers/ar/1
Photo: http://segets.com/restaurant-open-kitchen-layout-design-ideas-1-4974-design.html
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MillennialsI found this report online…
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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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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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TOP-PERFORMING
of Top-Performing companies are transparent about pay
47%
Vs 40% of all companies
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The Pay Transparency Spectrum
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The PayScale Pay Transparency Spectrum
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1. Paycheck“Here’s what you get paid”
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2. Market Data“Here’s how we use market data to set pay”
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3. Comp Plan“Here’s where your pay falls in range”
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4. Culture alignment“Here’s why we pay like we do”
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5. Open Salary“Here’s everything you want to know about everyone’s pay”
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Tips for Increasing Transparency
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Functional Transparency
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Gain executive support
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Develop a planEmployees know
× Their pay
× Range max
Employees know
Their pay
Grade & range
Comp Philosophy & basis for increases
Requires:• Executive support and buy-in for comp plan• Increased manager communication skills
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Get clear about roles
D A R C IDecision-Maker
AccountableResponsibleConsultedInformed
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Assess Workforce
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Train managers
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Total CompStatement
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Getting Started
• Do a market study • Evaluate your workforce • Assess manager communication skills• Determine current level of transparency• Identify desired level of transparency• Make a plan to get there
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PayScale Delivers Where Other Compensation Providers Fall Short
PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 54 million salary profiles. More than 3500 organizations use PayScale’s software and intelligence to get the greatest return on their talent. Smart businesses use PayScale Insight to recruit, retain and motivate their people.
Visit our blog: www.payscale.com/compensation-today
Join our Group on LinkedIn: Compensation Today: HR Best Practices
Rita Patterson, CCP
Manager, Customer Education
Mykkah Herner, MA, CCP
Modern Compensation Evangelist
www.payscale.com
#TalkPay