As you manage and refine your compensation strategy for 2014, it's imperative to have reliable, Texas-specific data to inform your decisions when building a solid compensation foundation.

1. Texas Compensation
Trends & Pay Practices
Zach Batson
Sales Manager
Karaka Leslie
Partnership Manager
www.payscale.com

2. www.payscale.com
14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors
40 Million Salary Profiles

3. www.payscale.com
Agenda
General Market Trends
Discuss 5 Compensation Best Practices
Immediate Action
Q & A

4. Trends

5. We surveyed 4,700+
companies about…
• Economic climate
• Compensation practices
• Business practices

6. Key Findings
Companies have big
plans for 2014:
• Workforce expansion
• Better financial performance
• Raises
But, they have big concerns about:
• Retention
• The skills gap
• Lack of good salary data

12. www.payscale.com
Dallas & Houston vs.
National Trends
What specifically does the PayScale Index measure?
The PayScale Index specifically measures the quarterly change in total cash compensation of
full time private industry employees
Houston Metro Area vs. Dallas Metro Area Year-Over-Year Percentage Change in Pay by Quarter

13. Compensation Best Practices
1) Understand Your Labor Market
2) Understand Your Jobs
3) Create a Competitive Strategy
4) Communicate Pay Strategy
5) Pay for Performance

14. Understand Your
Labor Market

15. Who do you compete with for your talent?
Size, Location, Revenue, Industry
Who can you compete with?
Understand Your Labor Market

16. THE COMPETITION
The Competition
YOU
Where could your employee work?
Understand Your Labor Market

17. Headline: HOUSTON IS HOT!
Understanding Your Markets

18. Understand
Your Jobs

19. Understanding
your Jobs
Work Gets More Specialized
Hot Skills in Texas
Not All Jobs Are Created Equal
Hot Jobs in Texas

22. Engineering
Precision Measurement 11.49%
Distributed Control Systems (DCS) 11.11%
Chemical Process Engineering 10.75%
Oil and Gas Formation Evaluation 10.19%
Well Production Engineering 10.17%
Drilling Engineering 8.32%
Industrial Hydraulics 7.56%
Tungsten Inert Gas (TIG) Welding 6.64%
Reservoir Engineering 5.90%
Financial
Financial Modeling 9.96%
Statistical Analysis 4.60%
Other
Loan Underwriting 8.66%
Data Modeling 6.74%
HOT Skills in Texas

23. Without Specialty
With Specialty
Skills Can Play a Role

24. Production Operator–20.99%
Geologist- 15.78%
Cost Engineer–15.63%
Process Technician- 14.69%
Customer Support Representative-12.27%
Quality Assurance (QA)/(QC) Inspector– 12.10%
Financial Planning Analyst– 12.10%
Technical Advisor- 12.01%
Pharmacy Technician, Lead– 11.84%
Project Control Specialist–10.65%
Physical Therapy Assistant–8.97%
Petroleum Geologist–8.12%
% increase
year over
year
HOT Jobs in Texas

25. 94.0
96.0
98.0
100.0
102.0
104.0
106.0
108.0
110.0
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2014
Q1
Software Developer Median Pay
Across Time for Texas
Software Developer United States
85.0
90.0
95.0
100.0
105.0
110.0
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2014
Q1
Sales Director Median Pay
Across Time for Texas
Sales Director United States
The “market” changes by job

26. Create a
Competitive
Strategy

27. THE COST OF
GETTING
COMP
WRONG
Payroll is by far your biggest
expense; the cost of getting it wrong
is tremendous.

28. www.payscale.com
Why Have a Comp Strategy?
We asked thousands of HR and business leaders*
about their top challenges in compensation. They said:
1. Retain. They don’t want to risk losing employees by underpaying
them, or losing money by overpaying them
2. Attract. To compete for talent, job offers must match the market
and the unique factors driving pay for their jobs.
3. Motivate. Drive performance with strategies that reward top
performers while aligning with company goals.
4. Confidence. Having the science to back up decisions and
conversations with executives and employees.
Source: http://www.payscale.com/hr/compensation-practices-survey

29. FACTORS TO
CONSIDER…
WHAT ARE OUR
BUSINESS
GOALS?

30. WHAT DO YOU
WANT TO
REWARD?
HOW COMPETITIVE
DO YOU WANT TO
BE?
WHAT IS YOUR
MARKET?

31. Vary strategy by department
Base your decisions on key roles
Competitive Strategy

32. Communicate
Pay Strategy

33. COMP STRATEGY
EXECUTION
• Communicate compensation
policy & plan to leadership
• Train & educate managers on
compensation policy & plan
• Better communication = better
engagement, higher
productivity, etc.
73% of company leaders do not feel confident in their managers’ ability to effectively
communicate with employees about salary issues. 2014 PayScale CBPR

34. COMMUNICATING
COMP

35. Pay for
Performance

36. Top people concerns
among senior business
executives are:
Creating a high-
performance culture
Leadership
development
Talent Management
Training

37. Return on Comp Investment
Leading edge practice: Pay for Performance
o Exceeds expectations
o Meets expectations
o Does not meet expectations
o Comp trend of yesterday: COLA

38. Source: Institute for Corporate Productivity 2013
% pay increase based on
Performance Metric

39. Elementary
• Know your jobs
• Have an understanding of the market
Intermediate
• Discuss a compensation strategy with leadership
• Know what you want to reward and what you value
• Build guidelines that reflect a compensation strategy that works for your business
Advanced
• Find new and creative ways to incorporate performance pay
• Know how your pay practices stack up against your exact competition for talent
• Communicate you pay strategy with management
• Develop a strong compensation structure
Immediate Action

40. Special Offer for
Texas HR
Professionals

41. 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
Zach Batson
Sales Manager
PayScale, Inc.
Karaka Leslie
Partnership Manager
PayScale, Inc.
www.payscale.com