Join Mykkah Herner and Ian Englund of PayScale’s professional services group as they explore the impact of a multigenerational workforce on compensation. They’ll discuss strategies for an appropriate compensation mix given various impacts.

1. Compensation decisions for a
multi-generational workforce
Presenters:
Mykkah Herner, M.A., CCP
Manager of Professional Services, PayScale
Ian Englund, CCP
Compensation Consultant, PayScale

2. 14,000 Positions 2500 Customers 11 Countries
250 Compensable Factors
40 Million Salary Profiles

3. 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!

4. Identifying
Generational
Differences

5. 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

6. 2014 Top Skills by Generation
Baby Boomer
Gen X
Gen Y

7. Pay By
Generation
Overall Pay
Gender Wage Gap

8. Effect of the
Skills Gap

10. Who is Impacted (Jobs)
Depends on Org
Size
Other Includes:
• STEM Jobs
• Finance
• Medical
Specialists
• Maintenance
• Machinists
• Truck Drivers

11. 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”

12. Generational Impact
• Machinists – lifers
• Managers – not retiring
• STEM – leap of faith
• Obsolete skills (Medical
Records vs EMR)
• Purple Squirrels

13. Impact of the
Government

14. 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

15. Generational Impact of Both Acts
Who is impacted?
• Hourly workers
• Part Time workers
What matters?
• Communication
• Managing expectations

16. This image cannot currently be displayed.
Generational
Priorities

17. WHAT IS THE
RIGHT
COMPENSATION
MIX FOR MY
ORGANIZATION?
www.payscale.com

18. Communicating About
Compensation
Employees 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.

20. Grade Assignments
Grade 8 Grade 9 Grade 11
Grade 14
Grade 15
(Designer Example)
Associate
Designer
Senior Associate
Designer
Designer
Senior Designer
Design Director

21. 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

22. 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