Post on 24-May-2015
transcript
Presented by:
Karaka Leslie
Insight Expert Product Manager
karakal@payscale.com
(206) 576-5035
www.payscale.com
Get Pay Right withPayScale Insight Expert
14,000 Positions
3,000 Customers
40 Million Salary Profiles
250 Compensable Factors
11 Countries
AGENDAWhy have a compensation strategy?
Insight Expert?o Expertise
o Deliverables
o Process
Questions?
Why have a compensation strategy?• Eliminate overpayment/underpayment
• Attract & retain the best talent
• Optimize annual pay changes with company goals
• Reward top performers who are most valued
• Improve managers’ tough conversations around pay
• Improve morale, job satisfaction and productivity
Why Insight Expert?
• Expertise/Recommendations
• Time/Resources Constraint
• Collaboration
• Need for manageable structure
• Multiple locations/different structures
• Experiencing rapid growth
Insight Expert Deliverables• Compensation philosophy and strategy document
aligned with your organization’s business goals
• Market assessment of base salaries
• 100% of your employees matched to your positions
• Base pay structure targeted to your competitive market
• Executive summary presenting recommendations for new plan
PayScale’s Expert Process
EVALUATE CURRENT
PRACTICE
Gather Historic
Information
Determine Necessary Employee
Salary and Position Information
Executive Team Meeting to
Understand Business Goals
FORMULATE COMP
STRATEGY
Determine Pay
Philosophy and Strategy
Review Job Matches
for Accuracy
Decide on Appropriate
Competitive Market(s)
IMPLEMENT
STRUCTURE
Create, Analyze and Formulate
Base Pay Structure
Identify Outliers and Develop
Strategy to Adjust Pay
Review Results &
Recommendations w/ Exec. Team
EVALUATE CURRENT
PRACTICE
Gather Historic
Information
Determine Necessary Employee
Salary and Position Information
Executive Team Meeting to
Understand Business Goals
• Who is your market?
• How competitive do you want to be?
• What do you want to reward?
FORMULATE COMP
STRATEGY
Determine Pay
Philosophy and Strategy
Review Job Matches
for Accuracy
Decide on Appropriate
Competitive Market(s)
www.payscale.com
Compensation Philosophy
The philosophy behind Company’s compensation program is to create a compensation program that supports the company’s mission and values. We believe our compensation program is a management tool that when aligned with an effective communication plan is designed to support, reinforce, and align our values, business strategy, operational, and financial needs with a goal of growth and profitability.
Company’s compensation program is designed to attract, motivate, and retain talented employees who drive the company’s success and uphold the company values. In recognition of the necessity for the top-tier talent, we strive to provide base salary that meets/exceeds the market when employees are fully proficient and meeting expectations. We believe that employees consistently performing above expectations and are proficient in the role should be rewarded with a higher base pay. In addition to base salary, the company will provide a benefits package that represents the company’s commitment to employee health and wellness. Finally, the company will utilize incentive or variable pay as a way to meet the strategic goals of the company. Incentive pay will be available to some employees with consideration for a number of factors and will be based on individual goals that relate to the company objectives as well as overall company performance
In alignment with our company culture, we will strive to communicate openly about design of the compensation program. The compensation process is intended to be fair and simple so that all employees and managers understand the goals and the outcomes of the process. Company will work hard to administer the compensation program in a manner that is consistent and free of discrimination.
IMPLEMENT
STRUCTURE
Create, Analyze and Formulate
Base Pay Structure
Identify Outliers and Develop
Strategy to Adjust Pay
Review Results &
Recommendations w/ Exec. Team
Cost to bring all Green Outliers to the minimum of the range: $5,221
Current amount paid to Red Outliers over the top of the range: $127,213
www.payscale.com
Advantages of Pay Structures
Provide alignment to business strategy
Clarify relative worth of the position internally & externally
Ensure fair pay (legally defensible)
Define a pay range for a position
Create clear career paths
Room to reward your employees based on performance, tenure, etc.
Grade Schedules by Location
TAMPASchedule C:
-5%
NEW YORKSchedule G:
+15%
PORTLANDSchedule D:
MainPurpose
Preserve both competitive pay and internal equity
Support simplicity of structure
Implementation
Schedule = set of ranges & grades
Career Path
Job Name
Job Name
Job Name
Job Name
Job Name
Grade Assignments
Grade # Grade # Grade #Grade #
Grade #
Grades & Ranges
GradeRange Width Min Mid Max
A 30% $8.75 $10.00 $11.25B 32% $9.75 $11.25 $12.75C 34% $10.75 $12.75 $14.50D 36% $12.00 $14.25 $16.50E 38% $13.50 $16.00 $18.50F 40% $15.00 $18.00 $21.00G 42% $16.75 $20.25 $23.75H 44% $18.75 $22.75 $27.00I 46% $20.75 $25.75 $30.50J 48% $23.25 $28.75 $34.50K 50% $26.00 $32.50 $39.00L 52% $29.00 $36.50 $44.00M 54% $32.25 $41.00 $49.75N 56% $36.00 $46.25 $56.25O 58% $40.25 $52.00 $63.75P 60% $45.00 $58.50 $72.00Q 62% $50.25 $65.75 $81.50
Hourly Structure
ONGOING SUPPORT
www.payscale.com
Manager Training AgendaPart I: Compensation Plan OverviewPart II: Putting in into practice
• Compensation 101
• Compensation structure & policy
• Improve performance management practices that link
to pay
• Understanding the merit matrix
• Tips for having “the talk”
Questions?
Presented by:
Karaka Leslie
Insight Expert Product Manager
karakal@payscale.com
(206) 576-5035
www.payscale.com
Karaka LeslieInsight Expert Product ManagerPayScale, Inc.
PayScale Delivers Where Other Compensation Providers Fall Short PayScale leads the world in compensation knowledge with the freshest and most detailed data from over 40 million salary profiles. More than 3000 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 Compensation Today blog: http://www.payscale.com/compensation-today
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