Webinar - Panel: Addressing and Controlling Pay Compression
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The document outlines a panel discussion on pay compression, where experts defined the concept and its implications, such as increased turnover and employee disengagement. It highlights the prevalence of pay compression and salary inversion, as well as labor market trends from Payscale's 2022 report indicating organizations' concerns about talent attraction and inflation. The session includes a Q&A segment encouraging audience participation.
Webinar - Panel: Addressing and Controlling Pay Compression
- 1. Panel: Addressing and Controlling Pay Compression
- 2. Today's Presenters: Jill Langhals Manager of Compensation Services Employer’s Resource Association Minde Stone Director of Total Rewards Payscale Melissa Sebald Compensation Manager Cardinal Health Amy Stewart Associate Director of Content Payscale
- 3. Today's Agenda • Setting the stage on pay compression • Panel questions • Audience Q&A
- 4. Setting the stage on pay compression
- 5. Pay Compression 101 Pay, wage, or salary compression is when… • The pay of one or more employees is very close to the pay of more experienced employees in the same job • Employees in lower-level jobs are paid almost as much as their colleagues in higher level jobs, such as with managers and direct reports Salary inversion is when… • Newer staff make more than experienced staff Manager Employees New hire
- 6. 6 Pay compression can lead to many challenges… Increased turnover Employee disengagement Reduced revenue Perception (or reality) of pay inequalities Negatively impact recruiting efforts In extreme cases: lawsuits
- 7. Wage and Labor Market Trends According to Payscale's 2022 Compensation Best Practices Report • 76% of organizations have experienced labor shortages or difficulty attracting talent in 2021. • 85% of organizations are worried about inflation In 2022, more organizations are giving pay increases: Payscale's 2022 Compensation Best Practices Report
- 9. Q&A Feel free to ask any questions in the chat!