comp foundations: executive buy-in
Post on 20-Jan-2017
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Comp Founda+ons: Ge0ng Execu+ve Buy-‐in
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Introduc+on Stacey Klimek VP People
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Introduc+on Jennifer Ferris, CCP Sr Comp Professional & Team Lead
Kendall Selle, CCP Manager, Customer Success
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54 Million Salary Profiles 250 Compensable Factors
10 Org types 350 Industries 15,000 Posi+ons
The World’s Largest Salary Database
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It’s hard out there for HR & Comp Pros
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HR Myths • HR people make decisions based on feelings, not data • HR people get in the way with all their rules and processes • HR people are tac+cal, not strategic
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The C-‐Suite: What Makes them Tick
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Recrui+ng top talent (growth in key areas)
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Different roles are of different value to your
organiza+on.
And that’s okay.
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Now What?
How do you know what to pay for which roles?
(which skills $$)
“If a developer has Ruby skills, they can count on approximately $17,000 annually added to their salary, and that's not chump change,” CIO Magazine
Define Your Roles
Where do you want to be in the market?
You don’t have to just pick one strategy!
Strategy Set Up
Pick Your Targets
Labor Markets
Pay Structure
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Reten+on
“The world isn’t really on an annual cycle anymore for anything.” Susan Peters, GE
Flight Risks
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Green & Red Circled Employees
Green Circled
Red Circled
The Big Picture
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Engagement
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Do employees feel valued?
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We discovered that transparent conversa+ons about money can actually mi+gate low pay. So, if an employer pays lower than the market average for a posi+on, but communicates clearly about the reasons for the smaller paycheck, 82% of employees we surveyed s+ll felt sa+sfied with their work.
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Conversely, we found overpaying employees in an effort to retain them without having this larger conversa+on about pay doesn’t ensure they are more sa+sfied.
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Sound financial decisions
What’s the cost of ge0ng comp wrong?
Payroll is by far your biggest expense; the cost of getting it wrong is tremendous.
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Costs of ge0ng comp wrong
Payroll costs: $10 million Pay Strategy Misalignment: .5% Annual Cost: $50,000
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What could your organiza+on do with another $50,000 a year?
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Communica+on Tips: Speaking the Language of
the C-‐Suite
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Keep it simple. Have slides available to support your ideas, but don’t rely on them. It’s a conversation.
Grab their alen+on
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The key to gaining respect is to speak authoritatively about your subject. Present problems backed up by data. Kill the HR Jargon, yet do use enough industry language to demonstrate your knowledge
Be a trusted advisor
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Frame everything according to the drivers that affect the business and the metrics that this exec uses to evaluate activities
Why should they care?
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Show multiple solutions, then advise which choice you’d select. Don’t present problems without solutions.
So what’s next?
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Regularly share high-level snapshots of how the changes you’re making are impacting your organization’s success.
Keep ‘em in the loop
Summary Stats
Customize The Report
I’m going to create a compensa+on plan to provide more structure to how salary decisions are made.
Don’t say…
Instead say… I’ve no+ced some challenges that con+nue to disrupt our ability to do business and I want to help fix them. Therefore I would like to facilitate a process to define and ar+culate the goals of our comp program.
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The Bolom Line People are the lifeblood of your organiza+on. Keeping them mo+vated and engaged is key to your organiza+on’s success.
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Q & A
(we’ll email this out)
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