ibm smarter workforce summit toronto 2015: creating compensation ambassadors
TRANSCRIPT
Creating Compensation
Ambassadors:
Engaging Managers To Willingly
and Effectively Talk About Pay
Louise Karp
PCL
Mark A. Szypko, CCP, GRP
IBM
© 2013 IBM Corporation
IBM Smarter Workforce
“If it were up to me…”
“My hands are tied!”
“HR made me do it!”
© 2013 IBM Corporation
IBM Smarter Workforce
Copyright Kenexa®, 2012 3
REALITY PERCEPTION
friends & family
coworkers
articles/publications
the internet
corporate culture
• Aligned to the
market
(median)
• Equitable
across
similarly
situated
employees
• Compliant
with relevant
statutes
• I’m not paid
enough for the
work I do
• I don’t know
why they pay
me what they
do
• My co-
workers who
do the same
thing make
more than I do
© 2014 IBM Corporation 4
Perceptions of Pay fairness over time
51%
55% 55% 54% 54% 55%
49%
57% 59% 58%
53% 50%
60%
20%
30%
40%
50%
60%
70%
2001 2002 2003 2004 2005 2006* 2007 2008 2009 2010 2011 2012 2013
% o
f E
mp
loye
es
wh
o B
eli
eve
P
ay i
s F
air
Notes: WorkTrendsTM . * Data were not collected in 2006, so mean across all years was used.
© 2014 IBM Corporation 5
Impact of managers communication skills on employees perception
of pay fairness
Source: WorkTrendsTM 2013/2014 Canadian data
SA
A
N
D
SD
© 2014 IBM Corporation 7
Managers Belief In Organizations Compensation Philosophy
Source: WorkTrendsTM 2013/2014 Canadian data
© 2014 IBM Corporation 8
Managers Belief In Organizations Compensation Philosophy
Source: WorkTrendsTM 2013/2014 Canadian data
81% of Managers Feel Well Prepared with 2 or more.
SA
A
N
D
SD
© 2014 IBM Corporation 9
Employees: More Communication = Better (to a point)
25%
50%
75%
100%
0 1 2 3 4
Understand how pay is determined Know how to maximize pay
Number of communication methods used
© 2013 IBM Corporation
IBM Smarter Workforce
“It is up to me…”
“My hands are NOT tied!”
“HR helped me do it!”
Number of Employees
More than 4,400 full-time professional and administrative salaried staff and more than 10,000 hourly tradespeople
Markets
Buildings, heavy industrial, and civil infrastructure
Annual Construction Volume
Over $7.5 billion
North American Headquarters Edmonton, Alberta, Canada
US Head Office
Denver, Colorado
Geographic Area
The United States, Canada, the Caribbean, and Australia
Portfolio
PCL is involved with more than 700 projects at any one time. These range in value from $20,000 to more than $1 billion and include office towers, residential condominiums, retail outlets, hotels and resorts, educational and health care facilities, casinos, sport and entertainment complexes, bridges, airports, high-tech facilities, water treatment facilities, petrochemical/power/oil and gas plants, and major plant maintenance shutdowns.
Ownership
100% employee-owned
PCL is a group of independent construction companies that carries out work across Canada, the United States, the Caribbean, and in Australia. These diverse operations in the civil infrastructure, heavy industrial, and buildings markets are supported by a strategic presence in 31 major centers.
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Employee Ownership Why be just an employee when you can be an owner?
Benefits for Employees
• 100% of the shares of PCL are held by its employees
• In addition to receiving competitive wages, employee shareholders share the profits that they help PCL to generate
Benefits for Clients
• Extraordinary performance by employee shareholders, motivated by a higher return on labour and investment, delivers outstanding value for clients
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PCL’s Compensation Philosophy Target Pay Competitively
• Comprehensive and competitive compensation package in each region in which we operate
• Regularly evaluate market competitiveness against our industry peer group
Pay for Performance
• Individual contribution and performance are factors considered when making compensation recommendations
• Recognizing and rewarding performance is critical to reinforce positive performance
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Managers Equipped: Managing your projects… managing your people
• Supervisor toolbox – Accountability, administration, effective delegation, employee
development, employee engagement, team building
• Supervisor development – Supervisor fundamentals, formal training for supervisor,
coaching, mentoring, individual learning
• HR as a resource – Provide communication tools, coaching and feedback
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Managers Enlisted: Key players in structure development and implementation
Confirm job information and
evaluate jobs
Create job grades based on job value
Determine and validate market
benchmarks
Marry market pay to job value
Undertake pay analysis
Determine pay policy line
Determine salary ranges
Determine adjustment costs
and policies
Implementation and regular review for competitiveness
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Managers Educated: Base Salary Progression Over Time
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S a l a r y R a n g e Midpoint Minimum Maximum
Entry Zone CR <90%
Target Zone CR 90 - 110%
Max Zone CR >110%
Employees who: • are new to the role or in the
early stages of their career, or
• exhibit lower levels of proficiency, or
• demonstrate tolerable levels of performance
Employees who: • are seasoned in their career
and are top performers, or
• exhibit mastery, or
• demonstrate considerable capabilities and are expected to grow further
Employees who: • are proficient in their role
and still growing in their career, or
• exhibit competent proficiency, or
• demonstrate ability to take on larger/stretch role
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Little to No Increase
Lower Performer Paid Higher
Average to Above Average Increase
Higher Performer Paid Higher
Nominal Increase
Lower Performer Paid Lower
Significant Increase
Higher Performer Paid Lower
Low
P
erf
orm
ance
High
P
erfo
rman
ce
Higher Pay
Lower Pay
Bonus Award and Share Ownership: Tied to Performance
Performance Bonus Award
• Individual, organizational and business unit performance are all factors in determining annual bonus awards
• Additional recognition for Star employees
Share Ownership • Employees who have
demonstrated commitment to the company and have significant career potential within PCL are considered candidates for share ownership
• Additional recognition for Star employees
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Managers Empowered: Arming managers to be compensation ambassadors
• Enabling managers to “comfortably” have meaningful conversations regarding compensation with their employees
• Reinforce and drive high performance
• Which leads to reduced HR-related costs
my CAREER. my COMPANY. my LEGACY.
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