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How to Make Sure Your Employees Feel Valued at Work

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How to Make Sure Your Employees Feel Valued at Work

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We have a foundational human need to feel valued, to feel appreciated, to feel like what we do matters, and is recognized. In HR we talk about “total rewards” or “rewards and recognition”. We may use all sorts of tactics to try to improve “employee engagement” but often miss some of the most important elements of this conversation. In this webinar we’ll dive deep into this human need to feel valued.

In this webinar, Tim Low, SVP of Marketing at PayScale, and Rusty Lindquist, VP of Thought Leadership at BambooHR will discuss why feeling valued is the key to sustaining great work and high performance. They will highlight what signals you need to watch out for to know when employees don’t feel appreciated. And most importantly, they will share concrete steps you can take to make sure your employees feel valued.

We have a foundational human need to feel valued, to feel appreciated, to feel like what we do matters, and is recognized. In HR we talk about “total rewards” or “rewards and recognition”. We may use all sorts of tactics to try to improve “employee engagement” but often miss some of the most important elements of this conversation. In this webinar we’ll dive deep into this human need to feel valued.

In this webinar, Tim Low, SVP of Marketing at PayScale, and Rusty Lindquist, VP of Thought Leadership at BambooHR will discuss why feeling valued is the key to sustaining great work and high performance. They will highlight what signals you need to watch out for to know when employees don’t feel appreciated. And most importantly, they will share concrete steps you can take to make sure your employees feel valued.

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How to Make Sure Your Employees Feel Valued at Work

  1. 1. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Tim Low SVP of Marketing PayScale Rusty Lindquist VP of Thought Leadership BambooHR
  2. 2. The link between emotion and performance
  3. 3. Employee Landscape Performance / Productivity
  4. 4. Employee Landscape TIME TALENT Performance / Productivity
  5. 5. Employee Landscape TIME TALENT ENERGY Emotional Capital isthe most important capital inour organizations. Emotion Engagement Sentiment Satisfaction Performance / Productivity Energy matters most
  6. 6. Employee Landscape TIME TALENT ENERGY Performance / Productivity We hire for thisWe give them this We expect this When they’re full of this
  7. 7. Employee Landscape TIME TALENT ENERGY Performance / Productivity
  8. 8. Employee Landscape TIME TALENT ENERGY Performance / Productivity The Organizational Impact of Disengagement 20% of their total performance capacity
  9. 9. Employee Landscape TIME TALENT ENERGY Performance / Productivity Want to drive up performance and productivity? Solve for energy.
  10. 10. Employee Landscape TIME TALENT ENERGY Performance / Productivity Want to drive up performance and productivity? Solve for energy.
  11. 11. Employee Landscape TIME TALENT ENERGY Performance / Productivity Want to drive up performance and productivity? Solve for energy.
  12. 12. Employee Landscape Performance / Productivity Emotional Capital isthe most important capital inour organizations. Solving for “energy” ishow you put the force of work back intothe workforce. Want to drive up performance and productivity? Solve for energy. TIME TALENT ENERGY
  13. 13. Compensation is the story of how much we’re valued
  14. 14. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Attracting / retaining talent is about reputation – what would your employees tell others about what the org values? • What you pay • How you pay • Why you pay the way you do Are You Paying Attention to Your Pay Brand?
  15. 15. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Only 1 in 5 Employees Feel Fairly Paid of employers say their employees are paid fairly 43% of workers think they are paid fairly 21% of workers paid the market rate and 64% of overpaid workers think they are underpaid 35%
  16. 16. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Employee Pay Perception Is 5x More Impactful Than How You Pay vs. Market
  17. 17. Understanding Employee “Triggers”
  18. 18. Life’s Journey A role in an organization An employee e THE DAY WE ARE BORN THE DAY WE FIND OUT WHY
  19. 19. OPTIMAL ORBIT WHY ORBIT OF EMPLOYEE ENGAGEMENT
  20. 20. WHY ORBIT OF EMPLOYEE ENGAGEMENT EMOTIONAL DISTANCING
  21. 21. WHY ORBIT OF EMPLOYEE ENGAGEMENT SOLIDIFYING RESOLVE
  22. 22. WHY ORBIT OF EMPLOYEE ENGAGEMENT CRYSTALIZATION OF DISCONTENT
  23. 23. WHY ORBIT OF EMPLOYEE ENGAGEMENT ESCAPE VELOCITY
  24. 24. WHY ORBIT OF EMPLOYEE ENGAGEMENT
  25. 25. WHY ORBIT OF EMPLOYEE ENGAGEMENT
  26. 26. WHY ORBIT OF EMPLOYEE ENGAGEMENT INTERVENTION OPPORTUNITIES
  27. 27. WHY ORBIT OF EMPLOYEE ENGAGEMENT Organizational Waste (20% Total Productive Power)
  28. 28. WHY ORBIT OF EMPLOYEE ENGAGEMENT (TREATMENT)(DIAGNOSTICS)
  29. 29. OPTIMAL ORBIT ESCAPE VELOCITY CRYSTALIZATION OF DISCONTENT SOLIDIFYING RESOLVE EMOTIONAL DISTANCING WHY ORBIT OF EMPLOYEE ENGAGEMENT
  30. 30. ORBIT OF EMPLOYEE ENGAGEMENT ABILITY TO DETECTHARD EASY ABILITY TO CORRECT EASY HARD We have to detect early, so that we can act fast. Begin with asking one simple question: eNPS
  31. 31. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com How an Employee signals when they don’t feel valued
  32. 32. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Signals Employees Send When TheyFeel Under-Valued “CAN I GET A RAISE?” • “I work all the time and I’m tired” • “I deserve a promotion” • “I don’t feel appreciated”
  33. 33. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Other signals of distress • Quality of work suffers • Lack of initiative • Unhealthy behavior • Apathy when “wins” occur • Social distancing from colleagues
  34. 34. Understanding the importance of pay perception
  35. 35. HOW WHAT OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE) Start With Why WHY Mission Values Beliefs EMPLOYEE SENTIMENT is a filter Thisis EmployerBrand Culture (How you behave) (who you are) Story (What they say about how you behave)
  36. 36. HOW WHAT OUTSIDE-IN (CONVENTIONAL) INSIDE-OUT (REMARKABLE) Start With Why WHY Mission Values Beliefs Pay Perception is a filter Thisis PayBrand Comp Practices (How you pay) (who you are) Story (What they say about how you pay)
  37. 37. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com How to manage pay perception
  38. 38. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com • Only 24 % of employees say that their company’s pay processes are transparent. • When employees ask for raises and their employer says “no” because of ”budgetary constraints”, only 22 % of workers believe this rationale to be true. • Of workers who were denied a raise, 33 % reported that their employer provided no rationale for the decision. Lack of pay transparency -> low trust / low morale Research from PayScale
  39. 39. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Whether workers believe in the rationale provided by their employer has a big impact on their job satisfaction and intent to leave. “Do you plan to look for new jobs in the next 12 months?” % Plan On Seeking New Job
  40. 40. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Even if denied a raise, as long as workers believe the rationale, they are similarly satisfied with their employer as workers who received a raise. % Highly Satisfied with Employer
  41. 41. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com • Develop a formal compensation plan • Have honest conversations with employees about pay and performance • Provide growth and learning opportunities • Instill a sense of pride in your employees: make them feel like their work matters How do you make sure employees feel valued?
  42. 42. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com • Alignment to business goals • Talent market / competition • Data sources • Communication Develop a Compensation Strategy
  43. 43. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com 1. What talent market(s) do you intend to use for comparison for your org? 2. How competitive do you want to be relative to your talent market(s)? 3. What do you want to reward with your compensation dollars? 4. What are your goals? Your compensation strategy should answer these q’s:
  44. 44. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com • Have these conversations early and often • Recognize the employee’s contributions • Discuss the total compensation package • Let them know about the market value for their role and skillset • Provide context: discuss the specific reasons on you’ve decided to give/ deny someone a raise as well as the big picture • Discuss with employees their career goals and the paths forward Have Honest Conversations About Pay and Performance
  45. 45. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com The Pay Transparency Spectrum
  46. 46. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Employees want autonomy, growth opportunities and enjoyable work
  47. 47. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Pride plays an important role in motivating people.
  48. 48. What can you do?
  49. 49. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Final Takeaways
  50. 50. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com BambooHR Receive a free job posting on our ATS and full HRIS for one week. We will contact everyone within the next few days to set this up. Receive a free copy of the eBook Compensating the Multigenerational Workforce PayScale.com Thank you!
  51. 51. How to Make Sure Your Employees Feel Valued at Work bamboohr.com payscale.com Questions? Tim Low SVP of Marketing PayScale Rusty Lindquist VP of Thought Leadership BambooHR

Notas del editor

  • Intros
  • Tim

    We all need money to live, but compensation is influenced by our career choices, and our career choice can be large part of our identity. It impacts our self-esteem and sense of well-being and our quality of life.
    Compensation is a yardstick of how important/ unimportant our work is to our employer.
    As human beings, we want to know how we stack up against our peers. Compensation invites comparison. We want to know we’re paid fairly compared to others who are doing similar work in our market.
    We all have a need to be in control; we want to feel like we’re making progress in our lives,  that there’s opportunities within our workplace for us to move up, earn more.
    If compensation is low, employees can be stressed about their finances, leading them to be more distracted at work. It also sends the message that one’s work is unimportant.

    If employees feel like they’re not paid fairly relative to their peers, or that they are not getting raises commensurate to the value they bring to the employer, their sense of fairness is violated.

    Now that it’s so easy for employees to research salaries online, they are thinking about how much they should be making and whether they’re valued or not by their employer all the time.
  • Tim

    Your pay brand impacts your employer brand. Because through pay, you’re telling employees a story about your culture and what you value.
    Your pay brand = how employees feel about the pay and the rewards at your organization
    It’s shaped by the way you pay - how much and why.
    It’s shaped by the way you talk about pay with employees
    What’s the message you’re sending to employees – through compensation about what you value? That’s your pay brand.

    Employees are always going to form opinions about your reward package.
    So, it’s your choice: do you want to be part of that conversation or not?

    In 2018, retaining your top talent is just as important as attracting new talent. You need to show your existing and future employees that you care about them and their quality of life. Acknowledge the value they bring to your organization’s success. This will set you apart as a beacon for the best, or, if you don’t do these things, put you in the penalty box where the market either believes you don’t pay well, don’t pay fairly, or they have to guess because you haven’t made it clear by your actions.

    Let’s look at some research on how employees are feeling about pay.
  • Corporate Chasm: Employees and Employers don’t always see eye to eye on compensation
    Based on a sample of ~7100 employers and 124K employees

    Lack of communication from employers create a pay perception problem.
    Our CBPR found that while 43 % of employers say that their employees are fairly paid, only 21% of workers / employees feel they are paid fairly.

    An earlier study we did on pay perception found that 64% of workers who are paid at market, and 35 % of workers who are paid above market still think they are under paid.

    Not on the slide, but another finding from the latest CBPR is that most workers do not think their employer’s pay process is transparent.
    Only 24% of workers feel that their company has a transparent pay process.
  • Both pay fairness and transparent pay policies matter for attrition and employee satisfaction.

    When employees don’t know how they’re paid, their minds tend to fill in the blanks, and most of the time, what they think is negative.

    Based on a sample of ~80,000 employees. We asked them “How pay is determined at my company is a transparent process” and they were able to answer on a 1-5 scale, where 1 meant strongly disagree and 5 meant strongly agree. We also asked “I believe that I am paid fairly” on this same 1-5 scale. In both cases, we observe a positive correlation with employer satisfaction, and a negative correlation with intent to leave in the next 6 months.

    Therefore, the Perception Gap is real and if you don’t fill it with information, people will fill it with their own narrative. And in the case for many, the narrative becomes “I am underpaid and thus undervalued.”

    This lack of understanding around pay is one reason companies like PayScale exist  there is a desire to fill this information void with real-time, compensation data for employee

    Even underpaid workers’ job satisfaction was high when they knew why they were paid the way they did, and felt fee to talk about compensation openly.
  • Tim:

    One of the more obvious signals that someone who is feeling under-appreciated can send is asking for a pay increase.
    When someone asks their employer for a raise, they’re feeling like their contribution is greater than their compensation. But money may not be the only motivation here.

    There’s a lot that may be going on beneath the surface. The employee who’s asking for a raise may also be asking for recognition, for an increase in the scope of their role and the depth of responsibilities, for opportunities to develop and grow. Perhaps the person feels like they’re working more hours than they want to. Or that they are doing important work that no one has recognized them for. It all comes down to a sense that they’re not valued by the organization.

    How well their manager understands the employee’s motivations and how the manager responds to the request and explains their decision makes a big difference in how the employee feels about their workplace (more research on this topic will be shared later).
  • Tim:
    The employee may not ask for anything from the organization, but rather choose other ways to express their emotional distress:

    Another sign to look out for is that someone’s quality of work suffers
    Quality work but not innovative: An employee who usually shows initiative in their work no longer shows initiative (choose to take on challenging projects).  
    Unhealthy activities (sometimes people overindulge in unhealthy behaviors to fill a void in their professional or personal lives)
    If an employee does not show excitement for recent wins/good results / is just apathetic.
    Distancing from colleagues = an employee who suddenly cuts back on spending time with their coworkers is someone who already has one foot out the door.
    Lack of learning = lack of work motivation

    Rusty to continue with other non-monetary signals of value.
  • A lot of the gravitational pull an organization has can be understood by a book written a few years ago by a guy named Simon Sinek called “Start with Why - How great leaders inspire everyone to take action”.
    Essentially what he taught was this. That most of the time, people can say what their company does. Fewer can say how they do it, and fewer still, can say why. Except in the most remarkable companies. In highly successful companies, the why, the story about why you do what you do, resonates in everything.
    And the stronger that message is internally, the stronger that message begins to seep out, almost without effort, and shapes the perception of the company, externally.
    And so the most remarkable companies don’t start with what, or even with how... they start with why.

    They start by building a powerful internal identity.
    And this identity is captured, succinctly and compellingly in your mission, your values, and your beliefs.
    The strength of that internal story then begins to resonate outwards. It shapes the behavior of your employees, and that becomes your culture. It’s communicated in your corporate brand, and manifests itself in how you talk to your market.

    And then, finally, HR activities are created to power the delivery of that story, and that culture, and that brand, out into the market. Shaping perception.

    So employer brand is very much the story we tell ourselves, our employees, and the market about what we do and why we do it.

    And please recognize, how critical this story is. This is not hypothetical, superficial, feel-good fluff.  The impact of a story is real. Because we’re all living in the age of the socialization of everything. Everything today is shared. From your morning visit to starbucks, to your annual salary.

    Now it used to be, that people just wanted a job. They just wanted to work. But now, in an age of social sharing, all of a sudden where I work is a part of who I am.  It’s part of my story.

    And if your story is weak, or ambiguous, or undefined, you will fail to inspire the hearts and minds of those job seeking candidates spending less than 50 seconds deciding if your story resonates with them or not.

    As a product marketing professional, and now as a speaker, let me tell you with absolute certainty… the strength of your story matters. It’s what draws candidates in. It leads to employee engagement, satisfaction, performance, and retention. 

    That’s we’re talking about today. That’s employer brand. The narrative wrapper of your identity, that governs your internal and external perception.
  • A lot of the gravitational pull an organization has can be understood by a book written a few years ago by a guy named Simon Sinek called “Start with Why - How great leaders inspire everyone to take action”.
    Essentially what he taught was this. That most of the time, people can say what their company does. Fewer can say how they do it, and fewer still, can say why. Except in the most remarkable companies. In highly successful companies, the why, the story about why you do what you do, resonates in everything.
    And the stronger that message is internally, the stronger that message begins to seep out, almost without effort, and shapes the perception of the company, externally.
    And so the most remarkable companies don’t start with what, or even with how... they start with why.

    They start by building a powerful internal identity.
    And this identity is captured, succinctly and compellingly in your mission, your values, and your beliefs.
    The strength of that internal story then begins to resonate outwards. It shapes the behavior of your employees, and that becomes your culture. It’s communicated in your corporate brand, and manifests itself in how you talk to your market.

    And then, finally, HR activities are created to power the delivery of that story, and that culture, and that brand, out into the market. Shaping perception.

    So employer brand is very much the story we tell ourselves, our employees, and the market about what we do and why we do it.

    And please recognize, how critical this story is. This is not hypothetical, superficial, feel-good fluff.  The impact of a story is real. Because we’re all living in the age of the socialization of everything. Everything today is shared. From your morning visit to starbucks, to your annual salary.

    Now it used to be, that people just wanted a job. They just wanted to work. But now, in an age of social sharing, all of a sudden where I work is a part of who I am.  It’s part of my story.

    And if your story is weak, or ambiguous, or undefined, you will fail to inspire the hearts and minds of those job seeking candidates spending less than 50 seconds deciding if your story resonates with them or not.

    As a product marketing professional, and now as a speaker, let me tell you with absolute certainty… the strength of your story matters. It’s what draws candidates in. It leads to employee engagement, satisfaction, performance, and retention. 

    That’s we’re talking about today. That’s employer brand. The narrative wrapper of your identity, that governs your internal and external perception.
  • PayScale:
    This lack of transparency and communication around pay decisions leads to workers not trusting their organizations to do well by them/ to treat them fairly. This results in workers feeling devalued.

    PayScale has done studies for years now on how workers feel about their pay and the pay processes at their workplaces. Our 2018 Compensation Best Practices Report found that just 24 % of employees say that their company’s pay processes are transparent.

    In our very recent ”Raise Anatomy” study, we found that when workers ask for a raise, and their employer says ”no”, the vast majority of workers do not believe in the rationale provided by their employer. We found that “budgetary constraints” was the most common reason employers provided for saying no to a raise request (49 percent of workers reported receiving this justification).

    Of those workers who heard that “budget didn’t allow” the company to give them a raise, only 22 percent believe that the provided justification is true. In other words, 78 percent of employees think they’re being lied to.
    Furthermore, 33 percent of workers who were denied a raise reported that their employer provided no rationale for the decision.
    Next, we also studied how workers feel about their employers and their intentions to look for new jobs after asking for pay raises.
  • Tim:
    In this study, we asked workers two questions to gauge their level of satisfaction with their employer vs. how likely they are to look for new job.

    We asked workers “do you plan to look for new jobs in the next 12 months?” Workers can select “yes” or no”

    Whether workers believe in the rationale provided by their employer has a big impact on their job satisfaction and their intent to leave.

    When workers don’t believe the rationale, or aren’t provided with any rationale, they report lower rates of satisfaction with their employer and are more likely to plan to quit.  
    A full 72 percent of workers who don’t believe in the rationale and 71 percent of workers who were provided no rationale reported that they plan on seeking a new job in the next six months (vs. 57 percent of workers who believe the rationale provided).

    You can see that workers who believed in the rationale provided – a lower percentage of them said they plan to seek a new job – than workers who got an increase that’s less than what they asked for.
  • Tim:
    In this study, we also asked workers two questions to gauge their level of satisfaction with their employer vs. how likely they are to look for new job.

    We asked workers “how satisfied are you with your employer”. People can rate between 1 and 5. 1 = strongly disagree that I’m satisfied. 5= extremely satisfied.

    The column “% of highly satisfied with employer” are those who rated their satisfaction level either 4 or 5.

    As you might expect, when workers are denied raises, their level of satisfaction with their employer takes a hit: Just 29 percent of workers who did not believe the rationale provided and 27 percent of workers who were provided no rationale reported being highly satisfied with their employer (vs. 55 percent of workers who asked for and received a raise).   

    However, this is the surprising part: We found that As long as workers believe in the rationale, they are similarly satisfied with their employer as workers who received a raise.

    50 percent of workers who believe in the rationale provided report high satisfaction with their employer (vs. 55 percent of those who asked for and received an increase).
    In comparison, only 29 percent of workers who did not believe in the rationale provided reported being highly satisfied with their employer, and just 27 percent of workers who were provided no rationale from their employer reported being highly satisfied.

    It’s interesting to see: those who asked for a raise, received one, but for less than they asked: they are less satisfied with their employer than those who were denied a raise but believe in the rationale.
  • Tim:
    Feeling valued is the result of being paid fairly (and knowing it), having sufficient growth opportunities, and feeling a sense of pride in the work that one is doing.

    Facebook surveys its workforce twice a year, asking what employees value most. After examining hundreds of thousands of answers over and over again, they identified three big buckets of motivators: career, community, and cause.

    Career is about work: having a job that provides autonomy, allows you to use your strengths, and promotes your learning and development. It’s at the heart of intrinsic motivation.
    Community is about people: feeling respected, cared about, and recognized by others. It drives our sense of connection and belongingness.
    Cause is about purpose: feeling that you make a meaningful impact, identifying with the organization’s mission, and believing that it does some good in the world. It’s a source of pride.

    https://hbr.org/2018/02/people-want-3-things-from-work-but-most-companies-are-built-around-only-one
  • Developing a consistent, data-based comp plan for your organization can make all the difference. It’s the first step to showing your employees that you’re dedicated to providing a healthy, balanced, and fair work ecosystem where they can do great work today and improve their skills and life situation for tomorrow.

    To make sure your employees feel fairly paid, you need to have a sound methodology for making pay decisions at your organization, one that makes sense based on your business goals and company values. When an organization talks about values but these values aren’t reflected in their pay decisions, employees will be easily see through that.
  • Tim:

    Your comp strategy needs to answer questions about your talent market, how competitive you want to be, and what you want to reward.

    A talent market is defined as the combination of industry, size, location and organization type. The markets you select should reflect where you compete for talent (not business).
    -You may want to use more than one market to cover all your jobs. For example, hospitals may use different talent markets for their office and clinical staff. They may compete in another market for their physicians.
    A common misstep is using market data and thinking it’s either right or wrong. Market data should be interpreted in the context of what you’re trying to accomplish.
    When you look at market data, think about how you want to apply it to your organization. You can and should deviate from market to prioritize or de-emphasize pay for some jobs.
    You want to decide how competitive you want to be. You may have different targets depending on how competitive you need to be to get the best people for your jobs.
    Some jobs may be hotter than others, so decide on the percentile you’re willing to pay for certain positions to help you keep and attract talent. Review your strategy regularly to stay current with your goals and market trends.
    Next: Be specific about what you want to reward. Do you want to reward performance and results? Reward experience, hot skills, or tenures? What you choose to reward should reflect the goals of your organization.
    You want to think about the various functions and levels within your workforce. And answer the three questions for each segment you’ve identified.
  • Tim:
    It’s important to train managers to have honest conversations with employees about pay and performance.

    We believe that we should not without hold critical information from employees. Your employees deserve to know how you maw make decisions that affect their livelihood. And it’s more kind to be honest, even if you’re sharing negative information, rather than to withhold it from employees. If an employee is not on a trajectory where they can be successful in their role, earn more money, it’s better to give them all the information as soon as you have it so that they can take action, whether that’s to fix a performance issue or you both come to the conclusion that there’s a mismatch of skillset to the role.

    Have pay and performance conversations early and often, so there’s not any surprises. At PayScale, managers sit down with new employees in the first several months of their tenure and share total compensation reports. You can also start the year by discussing compensation. Talk about what kind of bonus or raise the employee might expect if she meets or goals or doesn’t.
    Have regular check-ins throughout the year to talk about how an employee is performing. That way, she’s not taken aback by your formal evaluation and salary decision at the end of the year.

    Provide context: When employees are disappointed by their raise or bonus, it’s often because they lack information. Share the big picture with them: How the company is performing compared with competitors and the range of raises or bonuses the organization is offering this year. 
    Ground it in the facts. Explain what people are getting for this position with this title in the market with these skills. It’s important that managers understand what it means to be paid fairly in the eyes of your organization. You also want to explain how the decision behind the numbers was made.
  • PayScale surveys organizations each year about how they make compensation decisions. We found that organizations in 2018 have greater aspirations towards transparency than they did in 2017, with 58 percent of organizations aiming to be transparent at level three or greater (compared to 54 percent in 2017.

    You don’t have to reveal all compensation to all employees, though to be more candid with employees. A few steps you can take towards increased transparency are to discuss how their pay range is determined, where their compensation falls in the pay range, what the pay and compensation philosophy is for your organization.

    When you show employees that you’re open to having pay-related conversations, you’re letting employees know that you care about paying them fairly, and you’re letting them know that you trust them to make their own decisions with complete information. This helps them feel respected. f they don’t think their pay is fair, you’re willing to have a conversation to see what can be done to address the situation.
  • Tim

    Employees may feel devalued because they’re not growing, not enjoying what they do, or because they feel like their talents are under-utilized.  
    For example, when a talented employee is micro-managed / doesn’t have enough freedom to do what they’re capable of doing to serve the organization. Or, when an employee keeps doing the same thing they’ve already mastered rather than giving them new challenges.
    Solutions to consider:
    Do you operate from a place where you don’t trust employees, and make up a lot of policies and procedures to “manage” people? Or do you operate from a framework of giving people freedom and holding them accountable for results? Do you share a lot of information with employees, set clear goals and then trust them to make good decisions? Or do you micromanage your employees?

    Lori Galer (head of HR of Facebook) recently shared some results from surveys they’ve done at Facebook to understand why people quit their jobs in an HBR article: https://hbr.org/2018/01/why-people-really-quit-their-jobs

    “At Facebook, people don’t quit a boss — they quit a job. And who’s responsible for what that job is like? Managers.
    If you want to keep your people — especially your stars — it’s time to pay more attention to how you design their work. Most companies design jobs and then slot people into them. Our best managers sometimes do the opposite: When they find talented people, they’re open to creating jobs around them.

    Working with our People Analytics team, we crunched our survey data to predict who would stay or leave in the next six months, and in the process we learned something interesting about those who eventually stayed. They found their work enjoyable 31% more often, used their strengths 33% more often, and expressed 37% more confidence that they were gaining the skills and experiences they need to develop their careers. This highlights three key ways that managers can customize experiences for their people: enable them to do work they enjoy, help them play to their strengths, and carve a path for career development that accommodates personal priorities.”

    Train managers on how to work with each employee as an individual, to help the individual design motivating, meaningful jobs.

    Managers should be able to uncover each employees’ strengths and interests. It’s important that managers discuss with each employee what they want from their jobs and personal lives. Managers can attempt to assign work not just based on who’s available, but who has passion/interest.

    Managers should meet frequently with employees so that employees can receive specific, timely feedback or recognition.

    Encourage employees to pursue their interests and use their natural talents. Let employees know that it’s okay to do a job for a while and then find a new role. At Tableau for example, employees are encouraged to talk to colleagues in other departments, other teams to get a better understanding of the whole business, shadow people in their roles, and discuss their career aspirations openly with their managers. In their marketing organization, they have a full-time, in-house career coach who helps employees figure out what they want and how to pursue their career goals.
  • Tim:
    Pride, the feeling that one is proud of what one does at work, plays an important role in motivating people.

    Employee feel pride when they’re inspired by the challenge in front of them, they come up with ideas/ solutions on how to tackle that challenge. To foster this, managers should ask employees for input and encourage employees to share ideas when making decisions that affect the team. Pay attention to not dismiss ideas.
    Give employees challenging work, be honest with them about what your challenges business is facing and they will rise up to the occasion.   
    Ask your employees what will motivate or instill pride in them. Often times, what the management team feels will motivate and inspire their employees is very different than what employees feel will be motivating to them. Allow employees to speak freely about what motivates them.
  • PAYSCALE/BAMBOO
  • PAYSCALE/BAMBOO

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