Compensation decisions for a

multi-generational workforce

Presenters:Mykkah Herner, M.A., CCP

Manager of Professional Services, PayScale

Ian Englund, CCP

Compensation Consultant, PayScale

14,000 Positions 2500 Customers 11 Countries

250 Compensable Factors

40 Million Salary Profiles

� Identifying Generational Differences

� Effect of the Skills Gap

� Impact of the Government

• Minimum Wage

• Affordable Care Act

� Generational Priorities

• Compensation Mix

• Communicating about compensation

� Immediate Action!

Identifying

Generational

Differences

Defining the Generations

Generation Communication

About Comp

Avg Tenure Career Mindset

Silent/ Traditionalist

Generation

1927-1945

Private Lifers Retirement

Baby Boomers

1946 – 1964

Mostly Private 15+ years Retirement

Work/life Balance

Gen X / Busters

1965-1983

Somewhat

Private

5+ years Management

Work/life balance

Gen Y / Millennials

1984-2002

Public 1.5-2 years Go-Getters, Advancement,

Flexibility

2014 Top Skills by Generation

Baby Boomer

Gen X

Gen Y

Pay By

Generation

Overall Pay

Gender Wage Gap

Effect of the

Skills Gap

Who is Impacted (Jobs)

Depends on Org

Size

Other Includes:

• STEM Jobs

• Finance

• Medical

Specialists

• Maintenance

• Machinists

• Truck Drivers

Is it a Myth?

“The ‘skills gap’ myth plays a vital role in taking the

spotlight off corporate decisions and pro-corporate

government policies”

- Roger Bybee, “The ‘skills gap’ myth”

Generational Impact

• Machinists – lifers

• Managers – not retiring

• STEM – leap of faith

• Obsolete skills (Medical

Records vs EMR)

• Purple Squirrels

Impact of the

Government

Affordable Care Act

• 84% expect no staffing changes from the ACA

• 5% cutting back hours

• 8% will hire fewer full time workers

Fair Minimum Wage Act

• 40% are in favor of $10.10

• 30% against

• 30% unsure

Generational Impact of Both Acts

Who is impacted?

• Hourly workers

• Part Time workers

What matters?

• Communication

• Managing expectations

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Generational

Priorities

WHAT IS THE RIGHT COMPENSATION MIX FOR MY ORGANIZATION?

www.payscale.com

Communicating About

CompensationEmployees know…

o Only their own salary.

o Their range and where it caps out.

o All grade assignments for jobs up to a

certain level.

o All grade assignments for all jobs.

o The ranges associated with grade

assignments to a certain level.

o The ranges for all jobs.

o Everyone’s pay.

Managers know…

� Only their own salary.

� The salary of their direct reports.

� The salary of all those on their team.

� The grade assignments & ranges of their

direct reports.

� The grade assignments & ranges of all

those on their team.

� The grade assignments of all positions up

to their level or up to a certain level.

� The ranges of all positions up to their level

or a certain level.

� All grade assignments for all jobs.

� The ranges for all jobs.

� Everyone’s pay.

Grade Assignments

Grade 8Grade 9 Grade 11

Grade 14Grade 15

(Designer Example)

Associate

Designer

Senior Associate

Designer

Designer

Senior Designer

Design Director

Immediate Action(s)

1. Identify which generations are prominent in your

workforce

2. Assess your current compensation mix – does it

align with your workforce

3. Check your compliance to ACA and Minimum Wage

4. Review your open positions & identify skills needed

for those jobs – trainable?

5. Begin a conversation with your execs about

transparency

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 2500

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-today

Join our Group on LinkedIn: Compensation Today: HR Best Practices

Mykkah Herner, M.A., CCP

Manager of Professional Services, PayScale

Ian Englund, CCP

Compensation Consultant, PayScale