Webinar-Spring Clean Your Comp
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Transcript of Webinar-Spring Clean Your Comp
Spring Clean your Comp
Mykkah Herner, MA, CCPModern Compensation Evangelist
Ryan FowlerCompensation Professional
www.payscale.com
15,000 Positions 3500 Customers 11 Countries
250 Compensable Factors54Million Salary Profiles
www.payscale.com
Agenda
How is spring cleaning a comp thing?
Compensation plan review
Deep cleaning your comp plan
Cycling through smaller reviews
Where do you start?
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Understanding Comp through Spring Cleaning
http://kickstartyourtransition.com/blog/spring-clean-your-closet/
Just like you deep-
clean your house,
you should
thoroughly review
your compensation
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Compensation Plan Review
http://www.minteerteam.com/Blog/Spring-Cleaning-Checklist
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Compensation Philosophy
Answers the big “why” question
Should change infrequentlyReview annually
Our compensation program is designed to retain, attract, and motivate talented employees who drive the company’s success and uphold the company values. In recognition of the necessity for top-tier talent, we strive to provide base salary that exceeds the market…
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Compensation Strategy
Operationalizes the “why” with “how”
Review annuallyQuarterly for critical jobs
Talent Market(s)
Industry, Size, Location
Level of competitiveness
How aggressively to
pay
What to reward
Performance, Experience, etc
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Compensation Structure
Provides guidelines for pay
Review annuallyQuarterly for critical jobs
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Compensation Policies
Help ensure the plan is carried out
Review annuallyAs needed for key laws passed
Hiring rate: discretion is given to managers to hire from 0-33% range penetration; up to 50% requires HR approval, beyond that requires executive approval.
Promotions: increases, in the case of promotion, should be at least to the bottom of the new range, at least 7% and not to exceed 15%.
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Compensation Processes
Provide the literal steps to follow
Review annually
Process for adding or evaluating a job:1. Manager proves organizational need for the job or job change2. Manager develops job description, with appropriate compensable factors3. HR obtains market pricing and slots into structure4. HR provides manager with appropriate pay range and hiring range
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Deep cleaning your comp plan
fsdf
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What does comp deep cleaning involve?
• Refresh market data
• Evaluate overall structure
• Evaluate individual jobs
• Review for internal alignment
• Decide which adjustments to accept
• Communicate
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Refresh market data
• Identify data source
• Match your jobs
• Apply strategy to datao Marketo Percentile
• Age data as necessary
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Evaluate overall structure
Do your ranges align to market overall?
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Evaluate individual jobs
Did some move faster than others?
Vs.
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Review internal alignment
Have your adjustments created issues anywhere?
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Decide which plan edits to acceptDetermine cost to adjust
For example: if we adjust our ranges up 2%, how does that impact our green outliers?
Consider: • Top performers• Hot jobs• Compression• Green outliers
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Communicate
Update and Inform Executives• market change and cost to stay competitive• recommended course of action
Train Managers• company philosophy & strategy• current market position and comp plan adjustments• communication best practices
Adjust Employees• managers share market and performance adjustments
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Cycling through smaller comp reviews
http://www.yourmodernfamily.com/room-room-cleaning-schedule/
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Compensation Calendar
Q1
Enter adjustments Total Comp
Reports
Q2
Market Study Plan Review Trainings
Q3
Budgeting Evaluations
Q4
Calculate Increases
Goal Setting
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Staggered Cycles
January
February
March
April
May
June
July
August
September
October
November
December
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Lessons from inventory (or cleaning)
Break larger tasks into smaller cycles
Review cycles
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Monthly reviews
Market study hot jobs
Market study for company segment A
Plan review for company segment B
Adjustments for company segment C
Policy review
Process review
JanuaryFebruar
y
March
April
May
JuneJuly
August
September
October
November
December
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Identify Hot Jobs…
Decide what’s hot from your business goals
Let the market decide
Goal: Develop 2 market leading
products in the next 12 months
Hot jobs: Product Managers, Product Marketers,
Software Developers
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… and decide what to do
• Market bonus
• Project incentive
• Base pay raise
• Do something creative
• Do nothing
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Where do you start?• Map out competing organizational priorities on a calendar
• Calendar out comp activities, counting back from budget deadlines
• Identify jobs needed to accomplish business goals; evaluate market pricing vs pay practices
• Evaluate all elements of your plan: Philosophy, strategy, structure, policies, processes
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
Ryan FowlerCompensation Professional
www.payscale.com