What Top Performing Companies Do Differently

Mykkah Herner, MA, CCPModern Compensation Evangelist

Sonnet Lauberth, MA, CCPCompensation Professional

www.payscale.com

15,000 Positions 3500 Customers 11 Countries

250 Compensable Factors54Million Salary Profiles

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Top Performing Companies …• Have Transparent Pay Practices• Develop Competitive Strategies• Pay Their People

Where to start

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of Top Performing companies are transparent about pay

47%Vs 40% of all companies

Transparent Pay Practices

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Decide on the right level of transparency for your organization

Transparency Spectrum

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It’s time to clean house

Before taking the doors off your cupboards, clean them out.

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Effective communication mitigates pay concerns

of employees are ok with low pay if the rationale is explained

82%

of companies are confident in managers’ ability to have tough pay conversations

17%

But…

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Job Information

Teach managers to discuss market reports

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Total Compensation Statement

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Prepare your managersExplain the reportGive them talking pointsAnticipate employee questions

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Competitive Strategyof Top Performing companies pay more for competitive jobs61%Vs 54% of all companies

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Equal isn’t necessarily fair

Keep an eye on your hot jobs. Pay more where you have to

Industry: IT ServicesSize: 200 EEsLocation: Seattle, WA

Industry: IT ServicesSize: 10,000 EEsLocation: Seattle, WA

ONE-STRATEGY-FITS-ALL

SEGMENTED WORKFORCE

Industry: IT ServicesSize: 200 EEsLocation: Seattle, WA

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Define your strategy

Talent Market(s)

Industry, Size,

Location

Level of competitiveness

How aggressively

to pay

What to reward

Performance, Experience,

etc

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Target critical roles above the 50th %Tile

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Millennial Strategy

of Top Performing companies will change their strategy for millennials

35%

Vs 28% of all companies

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Know your workforce

Coming soon: Gen Z…

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Pay your people

90% of top performing companies gave increases in 2015

Vs 84% of all companies

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Give substantive raises

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0-5% 6-10% 11-15% 16-20% 21%+0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Average Raises

All Top Performing

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Get creativeof Top Performing companies use variable pay

81%

Vs 74% of all companies

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Evaluate your mix of pay

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Company culture, compensation philosophy, and compensation strategy

Base pay plan

Variable or incentive pay plan

Individualized rewards & recognition

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Know what motivates your workforce

Some creative perks out there…

Passes to sporting events

Learning and development opportunities

Gym memberships

Catered lunches

Fido Friday

In office massagesFree fruit

Days off after big deadlines

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Pay Fairlyof Top Performing companies say their employees are paid fairly

83%

Vs 73% of all companies

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Happy Equal Pay Day?

http://www.payscale.com/hr/equal-pay

https://www.whitehouse.gov/equal-pay/myth#top

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Need help getting started?• Get to know the makeup of your workforce; ask what

motivates them

• Review all elements of your comp plan, especially strategy and mix of pay

• Decide how transparent you would like to be; start mapping the steps to get there

• Do a market study to see whether you are, in fact, paying your people

• Do an internal audit to ensure you’re paying fairly

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

Sonnet Lauberth, MA, CCPCompensation Professional

www.payscale.com