Compensation can be tricky, few things carry as much emotional weight as comp. And with the increased transparency in the market, combined with our collective propensity to rate ourselves against others, the frequency of these very difficult conversations is increasing. In this webinar will deconstruct some of the psychology around comp. We’ll take an analytic look at comp’s role in the employee experience, and then we’ll get really tactical with guidance on very specific compensation conversations.

1. bamboohr.com payscale.com
Tough Comp Conversations: A Guide to Doing Them Right

2. bamboohr.com payscale.com
Tough Comp Conversations: A Guide to Doing Them Right
Rusty Lindquist Camie Bailey
Vice President, Thought Leadership
BambooHR
Comp Software Implementation Manager
PayScale

3. Understanding The
Employee Journey

4. TIME
Visibility
Technology Trigger
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of
productivity
GartnerHypeCycle

5. TIME
EMPLOYEE
ENGAGEMENT
Date of Hire
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of
productivity
EmployeeJourney

6. TIME
EMPLOYEE
ENGAGEMENT
Date of Hire
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of
productivity
Slope of
Disengagement
Slope of
Re-engagement
EmployeeJourney

7. EmployeeJourney

8. Employee Journey
Moments of Peak Engagement
At-Risk Exit Points

9. Life’s Journey

10. Ultimate
Individual
“Why”
The day you were born
The day you find out why
Life’s Journey

11. Ultimate
Individual
“Why”
The Orbit of Employee Engagement
Life’s Journey
The day you find out why
The day you were born
You
e
Your organization

12. Your
Company
Employee Journey
Journey of Re-engagement
e

13. Your
Company
Moment
of Peak
Engagement
(Flow)
Departure / Disengagement
Triggers
Emotional Distancing
Maximum
Risk of
Departure
Decision to
Re-engage
Emotional Refueling Onboarding / Reboarding
Employee Journey
Journey of Re-engagement
Journey of Disengagement
Optimal
Employee
Orbit (Circular)
“Re-hire”
& “Re-board”
Disengagement Diagnostics
Stay Interviews
eNPS
Pulse Survey’s
Intervention
Opportunities
Maximum
Emotional
Sensitivity
Lowest
Gravitational Pull
e
Organizational Waste

14. TRAINING MANAGERS

15. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
There’s a Large Confidence Gap
• 70% of conversations about pay happen between managers
and employees (CEB)
• Only 19% of companies say they’re ”very confident” in their
managers’ abilities to have tough conversations about comp
with employees (PayScale CBPR)
• But only 1/3 have training for managers (PayScale CBPR)

16. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Communicating the “WHY” of Pay Matters
• Most employees don’t know if they’re paid fairly or not.
• Perception of pay impacts employee satisfaction and intent to leave.
• 82% of employees are okay with low pay as long as they
understand the rationale.

17. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
What Employees BelieveAbout Pay
A survey of 71,000 people shows that most can’t identify how they’re paid compared to the market

18. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
What Managers Need to Know
1. Your company’s compensation philosophy, strategy and policies
2. Process for communicating comp – timeline
3. How to conduct the compensation review meeting
4. Communication best practices

19. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Compensation Philosophy
Tell managers how transparent your organization intends to be

20. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Strategy, Policies & Processes
• Results from your most recent market study
• How and when are market increases allocated?
• How are merit-based increases determined?
• How is range determined for a position?
• What will happen to pay in case of a promotion, demotion or transfer?
• What do you handle green-circled and red-circled outliers?
• Are out of cycle increases done, and if so, under what circumstances?
• If there are jobs / functions that will go through more frequent reviews?

21. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Prep for the Comp Review Meeting
1. Toolkit: Total Comp Statement, employee wage history, the team’s
wage history, job description, assigned goals
2. Scenarios to anticipate
3. Talking Points
4. Communication best practices

22. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Total Compensation
Statement

23. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com

24. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
What Employees Want to Know
• Am I getting a raise?
• Am I getting a promotion? If not this cycle, then when is it
possible for my pay to be adjusted?
• How is my pay determined?
• What do I need to do to increase my value within the
organization and earn more?
• How does my pay compare to my peers?

25. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Communication Tips
• Sell the organization and mention all its value drivers
• Point out what’s good about the employee’s offer (if their pay is high
relative to his or her peers)
• Listen to the employee’s concerns to figure out what’s behind the ask
• Let employee know what they can do to increase their value within
the organization and earn more

26. Understanding Comp
And Culture

27. Comp as Keystone to Culture

29. Culture is story
Everything you do
becomes part of that story…
The story of what you value

30. Compensation is the story
The story of how much you are valued.

31. Your
Company
Employee Journey
Journey of Re-engagement
Journey of Disengagement
ee

32. Employee Journey
Journey of Re-engagement
Journey of Disengagement
ee
IdIdentity
Howyouseeyourself
ObObjective
Whereyouaregoing
MeMeaning
Findingfulfillment
AlAlignment
Doingworkthatfits
MoMomentum
Beinginmotion
EnEnvironment
Culture,Cues,Ecosystem
LeLeadership
Havingaguide
PlPlan
Knowingwhattodo
SpSpace
Havingspacetowork
ReRelationship
People&connections
GrGrowth
Mastery&Progress
CoContribution
Havingimpact
RnRenewal
Restorationandbalance
VaValue
Totalrewards
InInvestment
Skininthegame
ScScore
Measuringprogress
The building blocks of high
performing people, teams,
and organizations.
of engagement, satisfaction, and performance
16ELEMENTS
INFLUENCERS:
Factors that fuel work
INPUTS:
What you need to work
ACTION:
Getting work done
OUTPUTS:
What you get from work

33. Employee Retention Fewer active elements means
less engagement mass
less gravitational pull
longer orbits, and
more risk of loss
ee
ee

35. Feeling appreciated, valued, and adequate rewarded for your effort.
Value
Total rewards
Va
Value
Rewards Recognition Compensation

36. Common
Conversation Scenarios

37. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Conversation Scenarios
• No raise / budget, pay is already high
• No raise, performance doesn’t merit a raise
• Got a raise, disappointed that pay is not higher
• Employee brings their own salary data, asks for a raise

38. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
No Raise, Pay is High
• Let them know their pay is high & where they are in the range
• Let them know how pay is determined
• What they can do to increase their earning potential going forward
• See if there’s other meaningful benefits you can provide
• Identify goals they can work on in the immediate future

39. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
No Raise, Performance is Low
• Rationale for why they’re not eligible for a raise
• What actions they can take to be considered for an increase in the future
• Show them a way forward. Set specific performance goals to work on
• Set timeframe for checking in on progress

40. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Got a Raise, Not Happy
• Highlight their key accomplishments and how pay is linked directly to
those accomplishments
• Remind them of the market value for their role & skillset
• Discuss why pay is fair and your involvement in getting them the raise
• Listen to what’s behind the concern

41. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
I found this salary report…
I need a raise.
• Not all data is relevant
• Reference your own data
• Explain the difference between pricing a job
versus pricing a person

42. Tough Comp Conversations: A Guide to Doing Them Right
bamboohr.com payscale.com
Tips for Your Next Increase Cycle
• Start planning for your next increase cycle now
• Get feedback from increase cycle from managers & employees
• Involve managers early in the next cycle
• If you’re changing your timeline, let people know you’re changing it
• Collaborate with managers in one central location

43. Your
Company
Moment
of Peak
Engagement
(Flow)
Departure / Disengagement
Triggers
Emotional Distancing
Maximum
Emotional
Sensitivity
Maximum
Risk of
Departure
Decision to
Re-engage
Emotional Refueling Onboarding / Reboarding
Employee Journey
Organizational Waste
Journey of Re-engagement
Journey of Disengagement
Disengagement Diagnostics
Stay Interviews
eNPS
Pulse Survey’s
Optimal
Employee
Orbit (Circular)
“Re-hire”
& “Re-board”
Intervention
Opportunities
Lowest
Gravitational Pull

44. Making the Compensation
Conversation a Culture Builder
Don’t be offended
Be open
Take it seriously Be objective
Be proactive
Be Positive

45. Comp is about an
Exchange of Value
Not just Money
Experience in industry
Experience in market vertical
Experience in adjacent markets
Experience in field of discipline
Experience in adjacent disciplines
Experience with competitors
Product knowledge
Competitor knowledge
Time and experience in company
Education
Discipline training and certification
Supply and demand
Employer Value DriversEmployee Value Drivers
Base pay
Performance Pay
Paid time off
Benefits
Travel
Culture and environment
Work flexibility
Work/Life balance
Meaningful work
Who you work with
Challenging work
Opportunity to impact
Job security
Shared purpose / mission
Career advancement opportunities
Autonomy
Senior leadership

46. bamboohr.com payscale.com
Tough Comp Conversations: A Guide to Doing Them Right
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Check out our blog Compensation Today: payscale.com/compensation-today

47. bamboohr.com payscale.com
Tough Comp Conversations: A Guide to Doing Them Right
Rusty Lindquist Camie Bailey
Vice President, Thought Leadership
BambooHR
Comp Software Implementation Manager
PayScale
Questions?