Stacey Carroll, SHRM-SCP, CCP, SPHRHawaiian AirlinesHR Experts On-Call

Designing the perfect compensation plan (secrets

revealed!)

Here’s the secret . . . . .

It has nothing to do with numbers!

Step 1: Engage Stakeholders in the Process

• Show them the current reality– Tell a story (with visuals)– Give them data (sample deck)

• Engage them in the process of designing/redesigning the strategy– Let them decide (comp philosophy questions)– Give them data (sample industry analysis)– Hold them accountable to decisions

Avoid these common errors

Your agenda vs. their agenda– Why does this matter to the Exec Team?– What business problem does it solve?

Presenting too much information– What is the big picture?– What is the strategy?– Where are my weak points?

Information without solutions– I don’t know why this is happening– I don’t know what to do about it

Too much urgency– Chicken little– We are going to get sued

“Employers often devote substantial resources to developing corporate policies on a wide variety of subjects, but fall short when it comes to communicating these policies to employees”

Communicating with Employees by Stacey Mark

Step 2: Train Managers

Step 2: Train Manager

The only job a manager has is to drive performance from the team to achieve the organization’s goals.

It’s so simple and yet so complex.

Elementary Level: internet salary report inquiryMiddle Level: FAQ’s about salary rangesSenior Level: Negotiating pay conversations

Step 3: Pay Transparency?

“Despite the best efforts by the organization and HR leaders to persuade employees that they value represented by pay is the value of the position, not the value of the person, employees have a hard time believing that.”

Money Talks: Telling Employees About Compensation Changes Can Be Easier if You Frame the Message Properly. Lin Grensing-Pophal

HR Magazine, September 2004.

Step 4: Fix Problems

• Differentiate• Do what you say you’re going to do– Salary targeting

• Don’t try to fix problems with money

Questions?Handouts available at:

www.hrexpertsoncall.com/seattle-shrm

Contact Information:Stacey Carroll, SHRM-SCP, CCP, SPHRstacey@hrexpertsoncall.com(206) 486-0887

Twitter: @hrstaceyConnect with me on LinkedIN: http://www.linkedin.com/in/hrstacey