The Pay Transparency Spectrum

Mykkah Herner, MA, CCPModern Compensation Evangelist

Rita Patterson, CCPManager, Customer Education

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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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Rita Patterson, CCP

Manager, Customer Education

Mykkah Herner, MA, CCP

Modern Compensation Evangelist

www.payscale.com

#TalkPay