Webinar: How to Communicate to Comp Executives and Managers
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The document provides guidance on communicating compensation information to executives and managers. It recommends understanding the audience, preparing talking points highlighting key messages, and providing helpful reporting. For executives, the focus is on aligning compensation with business objectives and keeping them informed. For managers, the emphasis is on setting expectations, training them on compensation and communication, and equipping them with tools for discussing compensation with employees.
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Webinar: How to Communicate to Comp Executives and Managers
- 1. How to Communicate Comp to Executives and Managers Paige Hanley, CCP Sr. Compensation Professional Mykkah Herner, MA, CCP Director of Professional Services www.payscale.com
- 2. www.payscale.com 14,000 Positions 3000 Customers 11 Countries 250 Compensable Factors 41 Million Salary Profiles
- 3. www.payscale.com Agenda A Note on Transparency and Communication Communicating with Executives • Understand the executive audience • Prepare talking points • Provide helpful reporting Communicating with Managers • Set expectations • Train managers in compensation and communication • Provide helpful reporting Immediate Action
- 5. Pay Transparency Trust Better Business Outcomes! Engagement Why Would Anybody be More Transparent about Pay? www.payscale.com
- 6. Employees who perceive a ‘fair and transparent pay practice’ have lower intent to leave and higher satisfaction PERCENT OF RESPONSES LOW AVERAGE HIGH 50% 31% 19% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 1 2 3 4&5 % Responses with Intent to Leave % Responses with High Satsifaction www.payscale.com
- 7. www.payscale.com Communication Roles Executives • Communicate program to organization at a high level Managers • Communicate compensation details to employees Employees • Bring questions to manager or HR HR • Prepare communication, consult and inform Executives, train Managers
- 8. Talking about pay isn’t always fun
- 9. Communication Tips KNOW YOUR AUDIENCE WATCH THE JARGON DON’T PRESENT ISSUES WITHOUT A WAY FORWARD PREPARE, PREPARE, PREPARE BE DIRECT AND ALSO EMPATHETIC COMMUNICATE EARLY & OFTEN 9
- 11. www.payscale.com • Understand the executive audience • Align compensation with business objectives • Incorporate leading edge practices • Keep executives up to date Exec communication tips
- 12. What do your executives care about?
- 13. Benefits of Comp Plans 13
- 14. www.payscale.com Key Messages to Executives while Developing your Plan Strategy Introduction to Project Manager Training Messaging Policies & Guidelines Results & Approval
- 15. Prepare Talking Points • Compensation philosophy & purpose • Compensation plan changes at the highest level • Market study & results • Next steps – talk with managers
- 16. Report High Level Info o Get them familiar with a dashboard (Compa Ratio, Market Ratio, etc) o Report these on a regular basis
- 18. of company leaders do not feel confident in their managers’ ability to effectively communicate with employees about salary issues. 2014 PayScale CBPR 73%
- 20. EQUIP MANAGERS Set expectations Educate them Give them the big picture Give them tools
- 21. Negotiation Skills • Sell the organization and the full package on the table • Sell the benefits of the offer (initial or increase) • Listen to the ask behind the ask • Meet them and then move
- 22. Listening Skills
- 23. Identify Creative Solutions Consider Workplace “Currency” Know what motivates your employees Additional/Alternative Perks FTE preference Staggered increase or offer PTO Work assignments Development opportunities 23
- 24. The compensation review meeting 1. Prepare for the meeting 2. Deliver feedback and listen 3. Follow up
- 25. Provide Talking Points • Compensation Philosophy • Market Study / results • Structure Overview • Position in range • Adjustment • Rationale • Open the door
- 26. Prepare Manager Toolkits • Compensation Plan Talking Points • Compensation Plan Information • Details for each employee they supervise • Tips for each type of conversation they may have o Pay is low or perceived to be low o Pay is high o No increase due to performance o “I found this on the internet”
- 27. Train Managers Compensation Plan Overview • Compensation 101 • Compensation Plan Info o Philosophy o Strategy o Structure o Policies o Processes Putting comp into practice • Linking Performance to Pay • Calculating Increases • Talking with Employees
- 28. Report Relevant Info Give them tools for success: o Flight Risk report & the inverse report o Disparate Pay report Give them insight into what employees care about o Am I making enough money to cover my basic needs (entry level) o Am I being paid fairly (professional level) o Am I being paid enough to deal with managing people (Mgrs/Dirs) Give them talking points for comp conversations with employees
- 29. Immediate Actions • Evaluate your comp plan to the market • Determine ways to increase transparency within your organization • Offer communication training for executives, managers, and employees • Prepare high level messages about compensation • Prep toolkits for your managers to use when communicating with employees
- 30. 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 3000 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, MA, CCP Director of Professional Services Paige Hanley, CCP Sr. Compensation Professional www.payscale.com
Editor's Notes
- Hedge
- Hedge Creator of the largest database of individual compensation profiles in the world, PayScale, Inc. provides an immediate and precise snapshot of current market salaries to employees and employers through its online tools and software. PayScale’s products are powered by innovative search and query algorithms that dynamically acquire, analyze and aggregate compensation information for millions of individuals in real time. Publisher of the quarterly PayScale IndexTM, PayScale's subscription software products for employers include PayScale MarketRateTM and PayScale InsightTM. Among PayScale's 2,500 corporate customers are organizations small and large across industries including Mozilla, Tully’s Coffee, Clemson University and the United States Postal Service.
- Hidden behind this message is the fact that your comp plan needs to be in order before you can truly increase transparency
- Transparency is a means to an end – We do transparency to build trust - building trust increases both engagement and through that productivity/performance - performance drives business results and outcomes
- Hidden behind this message is the fact that your comp plan needs to be in order before you can truly increase transparency
- Managers are both agents of the organization and advocates for employees We want your managers acting with confidence – hence, training. The “Go ask HR” response: Don’t want to undermine your own authority If you say, I don’t know, go talk to HR – then when are they going to talk to you? HR won’t let me: HR is there to support, not hinder you EE confidence that the organization knows what its doing Executives’ Role Approve program. Communicate program to org at a high level. Perform manager/supervisor role. HR’s Role Get program ready. Ongoing communication to Execs. Train managers. Managers’ & Supervisors’ Role Understand the program. Communicate with employees. Get support from HR. Employees’ Role Agree to the program. Communicate with manager/supervisor.
- Fear of conflict in having the conversation about comp - catch it early – communicate early & often – always be talking - it gets harder as conflict escalates - some comp conversations can be motivating.
- Communicating with executives involves Understanding the executive audience: Put yourself in the shoes of your executives. Making sure compensation is aligned with business objectives: Present yourself as someone who understands the business. Incorporating leading edge practices: Your execs need you to keep them abreast of the best of the “best practices.” Keeping executives up to date with quick “snapshots:” Keep the details to a minimum, please. Understand the Executive Audience Your executives got to where they are by learning how to get what they want, so before approaching them you better get your ducks in a row if you hope to get want YOU want. Understand that executives: • Don’t want to be told what to do: Does anyone? • Can be distrustful of change: Change? Yeck! More hoops, more work, and more $$$. • Are used to making decisions: Do your homework to provide several options, then ask for input. It’ll make your execs feel special! • Know they know stuff Avoid coming of as a “know it all” yourself. Ask the Right Questions The RIGHT compensation policy starts with asking your executives the RIGHT questions. (We’ve provided a few right questions to get you started. Aren’t we the best?) Question: Why do you want to have a good comp program? Answer: To pay people RIGHT. Question: Why do you want to pay people right? Answer: To attract and retain top talent. Question: Why do you want top talent? Answer: To accomplish our business objectives. • Regularly REPORT OUT how the plan is performing. Your information should be high level (avoid too many details) and relevant. Hint: PayScale makes this easy with multiple dashboards. • Give them TOOLS FOR SUCCESS (e.g., reports with relevant information). • Give them INSIGHT into what employees care about. • Give them TALKING POINTS for conversation with employees.
- Alignment Validates compensation strategy and aligns to business goals Fairness Clarifies the market and internal value for each job, and provides a way to manage employee pay effectively Ensures pay equity (legally defensible) Provides room to reward your employees based on performance, experience, etc. Communication Provides a tool to talk with employees about development Confidence Quantifies compensation costs & enables budget decisions Determines pay for non-benchmark jobs Gives HR, managers, and employees confidence that pay decisions are fact-based
- Status Updates throughout
- Along with other dashboards & “health of the organization” information, they should have the pulse of comp – org/wide – high level. 20K feet. Etc.
- It isn’t about spending more It is about spending smarter We want to take the budget and make it work for your business In order to make your comp plan “work” for you, we need to make sure it touches everyone in your workforce rather than sitting in an excel sheet With Insight expert we make it
- Managers are there to help you solve the puzzle… - also, eyes and ears of the org -- first alert system to something may be awry. - take ownership for decisions - speak with Ees with confidence of knowing comp decisions are sound, etc…
- Equip your managers to have productive talks with employees about compensation by: Setting expectations. Ask more and expect more from your managers. Teaching negotiation & listening skills Big pic – why and how does it fit in to org objectives Tools: Helping to prepare them for the compensation review meeting (including talking points). Presenting compensation basics.
- Negotiation skills: First things first, a no-brainer is to use your total rewards package to sell your organization – sell employees or candidates on career path potential, the benefits of org as a whole, maybe the fun things that your team does to celebrate (baseball games or a ride the duck tour). And, we want to teach our managers to tailor their negotiations to the needs of the individual. Sell the benefits of the offer, whether it is an initial offer or an increase for a current EE. There will be of course some differences here between an existing EE and a potential candidate. As an agent of the org, we want to train our managers to able to acknowledge when a candidate has more than what they are looking for, whether its more experience, additional certifications, whatever it may be. If our managers aren’t able to do that, there is a risk of making that person a high offer, which can result in your new employee fizzling out quickly with no room to grow. This isn’t great for anyone – the morale of the department can suffer, they as an employee will suffer, and of course, when they decide to move on more quickly, the manager now has to recruit again. Managers need to be trained on how to poise the increase as well. Train them to leave the door open. Depending on how transparent org is, communicating an employee’s increase and how it stacks up to others can be helpful – contextualize their increase so they can be excited about it. For example, Sally – your increase this year is 3.5%. That’s something to be proud of, as the average increase given was closer to 2.5%. Listen to the ask behind the ask – Ees will often say “I need another $100 a month”, but what they are really saying is Sally is making more than me and I’m a better performer, I just did really well on this project – why aren’t you recognizing me. Be sure you know what’s really going on – what’s the real challenge – what is the ask behind the ask? Meet them and then move: it’s hard to create movement by getting people to take a leap of faith – but that really depends on the trust level involved. Usually, you need to be willing to meet them where they are and then move forward together to where you need to go. Here’s an example. If you have an employee that want you to be doing XYZ responsibilities, but that employee is doing ABC responsibility right now, you can’t just expect them to make the jump on their own. You’ll need to start at ABC together and work your way up to XYZ as a team.
- Know what to listen *for* (behavior & words) – absences, etc Self Reflect – Values-Driven Dialogue begins internally, and internal awareness forms the background to a Values-Driven Dialogue. Listen Actively – Each party commits to being present and seeking to understand the other party. Communicate Assertively –Active listening is paired with assertive communication, where each party commits to being honest, direct, and respectful of both themselves and the other party. Agree & Act –Values-Driven Dialogue results in shared understanding and action that is agreed upon by both parties.
- Here is a quick overview of what your managers need to know – we will dig more deeply in to different ways the conversation might go in the next webinar. First, to prepare them for the meeting, you’re going to need to provide them with a packet of information for the meeting: Documents you might want to include: Compensation history for each EE as well as for the team as a whole An increase spreadsheet Talking point FAQs. This might include information about the company’s comp plan for example. And, some talking points. They’ll likely want to cover things like Review prior evaluations, goals, the EE’s JD Review org/team goals Consider org/cross-team projects Make sure that they are versed on any Employee specific info: Know the employee’s pay, grade, and range. Know when they received their last increase and the amount of the increase. Be ready to discuss the following: Where the employee falls within their range and why What the employee needs to do to move up in their range What the employee needs to do to move to the next level / range (if applicable) And, If there is a potential issue (for example, the employee’s pay is above range), consider the reason behind that. Is there a way forward? – we’ll talk more about these kinds of different scenarios next time. 2. Deliver the feedback (Ask, Here’s the behavior, here’s the impact, here’s what you need to do differently in the future) Listen first Offer feedback and your own ideas Feedback sandwich – start with something good, give them an area to improve upon, and then follow up with something else positive. Be specific, honest, and professional; there shouldn’t be any surprises! And, Provide a way forward 3. Follow up Ensure meeting outcomes are documented Revise forms, complete signature page, go through the transactional items need to be “done” It’s a good idea to encourage your managers to track performance on an ongoing basis - Providing regular feedback makes a big difference in how these conversations go. Check in regularly about goals Set up mid-year check-in meeting Encourage & support employee
- Digging a little big deeper into the talking points, what should managers cover in this meeting: Market study/results – make sure the manager is knowledgeable around this – their knowledge doesn’t have to be extensive. It can be as simple as a one-liner about why the company did the study and what the overall result was. Comp Philosophy – yours managers need to know what your comp phil is before they can champion it. As you are giving them the packets in preparation for their meetings, be sure you are reviewing this with them so they can be proficient. Structure overview – not just what a structure is, but why it benefit them and why it is a good thing. Adjustment – know the EE’s appropriate adjustment, if any. Know both $ and % (or whichever is more meaningful in your organization). Rationale – the why or why not. This is where the real listening comes into play. And, this is the part that everyone is afraid of. This is a good time to remember the conflict management techniques and the different roles we discussed during the last webinar. Remember – address conflict early and often! And, Open the door – no matter where someone is, there is always a way they can do more and earn more – through a promotion or a bigger/any merit increase next time. Here is what we are looking for. Here is how to attain it.
- Be prepared… The employee is often going to want: More money Promotion To be paid like their peers To understand why others are paid more than they are
- Talking points: heard someone refer the way that managers feel about the comp convo with EE to how parents feel about having the birds & bees conversation with their kids. It gets real, and it’s really uncomfortable.
- Okay we’re going to open up a poll now on what your biggest challenges are when developing a pay structure. Please vote and then we’ll post the results in just a couple of minutes. Mute ourselves – post poll – share results Answer questions.