Budgeting Part: Putting it All Together With PayScale Insight Slides
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The document is a webinar series by PayScale on compensation budgeting, focusing on managing pay inequities across organizational, positional, and employee levels. It outlines strategies for identifying inequities, calculating pay increases based on market data, and developing budget recommendations for fair compensation. Additionally, it emphasizes the importance of having a solid compensation philosophy and utilizing reliable data to ensure equitable pay practices within organizations.
Budgeting Part: Putting it All Together With PayScale Insight Slides
- 1. Mykkah Herner, MA, CCP Head of Professional Services Ian Englund, CCP Sr Compensation Professional PayScale, Inc. 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 Three-part Series on Compensation Budgeting Part I: Managing Pay Inequities Part II: Determining Raises Part III: Putting it all together with PayScale Insight
- 4. www.payscale.com Agenda Recap of Parts I & II Part III •Identifying Pay Inequities – Org Level •Identifying Pay Inequities – Position Level •Identifying Pay Inequities – Employee Level •Calculating Pay Increases
- 5. www.payscale.com Start with a plan •Know your comp Philosophy, Strategy, and Policy •Get reliable market Data Identify comp inequities at Org, Dept, Position, and Individual levels •Org/Plan level: fair pay to market •Dept level: fair pay across departments •Position level: have some positions move faster than others? •Employee level: are you paying according to your policy? Fairly based on EEO status? Develop solutions Recap of Part I http://resources.payscale.com/hr-webinar-recorded-compensation-budgeting-three-part-series.html
- 6. www.payscale.com Know what you want to reward Streamline the increase process Calculate pay increases •Market-based •Merit-based Develop budget recommendations •Range Adjustments (Org level) •Market Adjustments (Position level) •Equity Adjustments (Individual level) •Pay Increase Adjustments Recap of Part Il http://resources.payscale.com/hr-webinar-recorded-compensation-budgeting-three-part-series.html
- 7. Organizational Level Pay Inequities
- 8. www.payscale.com Identifying Org Level Inequities Ranges to Market oExamine Ranges to Market on the whole – do most move up? Most move down? What’s the average? oDo you want to move ranges at this time? oBudget oOrganizational demands
- 10. www.payscale.com Identifying Position Level Inequities Ranges to market by position oDoes the market suggest moving the position to a new grade? oWhat are the EE compa-ratios for those positions? oDecide which to move – examine where other positions are in the job family oHow to identify what type of market premium could be applied to a position (vs moving the grade)
- 12. www.payscale.com Identifying Employee Level Inequities oPaying according to policy: •green-circled, red-circled •compression oEEO Concerns •resolve critical issues asap
- 14. www.payscale.com Using a Matrix (Merit or Proficiency) Tier increases by position in range & performance oStart with a budget increase % oAllocate increases to EEs based on range penetration and performance oCreate spreadsheet oNote: Proficiency, or another factor, can work like performance in this example
- 15. www.payscale.com Increase Spreadsheet Name Job Title Current Annual Base Range Min Range Mid Range Max Compa- Ratio Range Penetration Increase % Annualized Increase New Annual Base New Compa- ratio New Range Penetration Alexander, Maria Account Manager $45,900 $46,300 $57,100 $67,900 0.804 -2% 3.80% $1,744 $47,644 0.83 6% Arnold, Alexandra Driver I $29,600 $29,300 $35,700 $42,100 0.829 2% 3.80% $1,125 $30,725 0.86 11% Baker, Nicholas Account Executive $46,500 $40,400 $49,800 $59,200 0.934 32% 3.80% $1,767 $48,267 0.97 42% Allen, Ryan Program Manager $86,700 $73,600 $93,300 $113,000 0.929 33% 3.80% $3,295 $89,995 0.96 42% Bailey, Sara Senior Account Executive $64,000 $54,700 $68,400 $82,100 0.936 34% 2.80% $1,792 $65,792 0.96 40% Anderson, James Customer Service Rep $45,500 $34,900 $42,500 $50,100 1.071 70% 1.90% $865 $46,365 1.09 75% Andrews, Vincent Senior Account Executive $76,700 $54,700 $68,400 $82,100 1.121 80% 1.90% $1,457 $78,157 1.14 86% Adams, Christina Account Manager $63,800 $46,300 $57,100 $67,900 1.117 81% 1.90% $1,212 $65,012 1.14 87% Total/Average $458,700 0.967625 41% 2.96% $13,257 $471,957 1.00 49% SUM AVG AVG AVG SUM SUM AVG AVG •Compa-Ratio = Current Annual Base / Range Mid •Range Penetration = (Current Annual Base – Range Min) / (Range Max – Range Min) •Annualized Increase = Increase % * Current Annual Base •New Annual Base = Annualized Increase + Current Annual Base •New Compa-Ratio = New Annual Base / Range Mid •New Range Penetration = (New Annual Base – Range Min) / (Range Max – Range Min)
- 16. 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 Manager of Professional Services, PayScale, Inc. www.payscale.com