Post on 15-Apr-2017
transcript
The Corporate Chasm
Mykkah Herner, MA, CCPModern Compensation Evangelist
Jennifer Ferris, CCPManager of Professional Services
www.payscale.com
15,000 Positions 3500 Customers 11 Countries
250 Compensable Factors54Million Salary Profiles
www.payscale.com
Jennifer Ferris, CCPManager Professional Serviceshttps://www.linkedin.com/in/JenniferFerrisCCP
Mykkah Herner, MA, CCPModern Comp Evangelist@Mykkah_Hernerhttps://www.linkedin.com/in/mykkahherner
www.payscale.com
Understanding the Corporate Chasm
Bridging the gaps• Fair Pay• Appreciation• Transparency
Where to start
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Less than 100 Employees100 - 1,000 EmployeesMore than 1,000 Employees
550K Employees SurveyedLess than 1 year 1-4 years
5-9 years 10-19 years
20 years or more
Nearly 7600 Respondents
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Bridging the gaps
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Fair Pay
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63.7% of employees report being paid "below average"
72.5% of employers consider their employees
fairly paid
Hardwired for fairness
Study: https://depts.washington.edu/uwkids/Shaw.Olson.2012.pdf
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Most Do Not Know if They Are Paid Fairly
Full Article: https://hbr.org/2015/10/most-people-have-no-idea-whether-theyre-paid-fairly
What can you do?
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Fair pay to the market
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Internal Equity
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Individuals in the same job or job family
Pay based on performance
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Individuals in the same job or job family
Compression within and between roles
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Individuals in the same job or job family
Auditing pay for protected classes
Fair isn’t necessarily equal
P er f or m
an c e ba sed p
ay i nc r eas es
C o s t of l
i vi n
g ad j u
s t men t s
Ma r k et a
d j us t m
en t s
Emp l o
y ee pr o m
o tio n s
R et en ti o n
I nt er n a l p
ay i neq u i ti
e s
50.1
%
20.8
%
9.3%
3.4% 8.
5%
1.9%
Basis for 2015 Raises
For more information: https://hbr.org/2016/03/when-unequal-pay-is-actually-fair
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Appreciation
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45% of respondents feel like they are appreciated at work
78% of employers feel their people are their greatest
asset
Appreciation drives results
Image: http://www.quantumworkplace.com/future-of-work/funny-ecards-for-employee-appreciation-day/
Study: http://www.health.harvard.edu/newsletter_article/in-praise-of-gratitude
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How does perception of pay impact employees?
What can you do?
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Relationship with Manager
67% of respondents report having a great relationship with their direct manager
35.1% of employers cite a bad relationship with direct supervisor or manager as in
the top three reasons people voluntarily leave
EQUIP MANAGERS
Educate ThemGive them the big pictureGive them tools
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Learning & Development
58.2% of employers plan on offering learning and development opportunities in 2016
45.3% of employees "agree" or "strongly agree" that their employer provides them with enough opportunity for learning and development
Spectrum of Learning & Development Activities• Learning management system
• Mentors
• Lunch & Learns
• HR-led manager groups
• Structured succession planning
Showing appreciation through total rewards
54.6%
18.3%35.3%
13.3%
58.2%
28.1%
Plans to recruit and retain high-performing employeesAll
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Transparency
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21% of employees agree that their company is transparent about pay
40% of employers report that they are transparent
about pay
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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Effective Communication
17% of companies are confident in managers’ ability to have tough pay conversations
82% of employees are ok with low pay if the rationale is explained
What can you do?
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What’s the right amount of information to share?
Pay Transparency
What’s your deal?
Employees and employers are in a relationship where they agree to things
• Exchange of value• Mental math – does it add up?• Ongoing calculation that results
in level of contribution & rewards
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Need help getting started?
• Identify any skills gaps amongst your managers and plan to train in communication
• Audit Learning & Development activities and plan to expand offerings
• Complete a market study to make sure you’re paying fairly
• Review comp plan to determine readiness to share cross org
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-todayJoin our Group on LinkedIn: Compensation Today: HR Best Practices
Mykkah Herner, MA, CCPModern Compensation Evangelist
Jennifer Ferris, CCPManager of Professional Services
www.payscale.com