Money Talks: Corporate Policies, Communication and

Compensation

David B. Turetsky 31 August 2010

4:15PM to 5:15PM

Rules:

1.  Enjoy, sit back and relax.

2.  Have some more coffee!

3.  Please turn off/mute all cell phones, communicators and other wireless devices!

Real-Time Pay for Performance

•  Our goal is to have a good discussion

•  Share ideas, stories •  What went right, wrong •  Be mindful of others wanting to share their

stories

•  My goal is to facilitate the discussion

•  When someone starts a good discussion, they will receive a prize!

Description:

Creating a culture of productivity and success requires appropriate communication around compensation. Inappropriate compensation conversations can be detrimental to the psyche of employees and may have legal or governance ramifications. This session will explore corporate policies around compensation communication.

ROIs

1. Do's and don'ts of compensation communication

2. Understand the prevailing laws and corporate governance issues

3. How decisions can be communicated in the most productive way

My Employers:

•  TPF&C/Towers Perrin

•  Watson Wyatt

•  Morgan Stanley

•  Becton Dickinson

•  Bankers Trust

•  Deutsche Bank

•  DoubleClick

•  MarketDataNow

•  Aon Consulting

•  Workscape

When do we usually talk to employees about Compensation?

•  Pre-hire

•  Hire

•  Paychecks/Direct Deposit

•  Benefits Enrollment

•  Merit Review

•  Total Compensation Statements

•  Problems

Why do we usually talk to employees about Compensation?

•  Pre-hire – The Advertisement

•  Hire – Negotiation

•  Paychecks/Direct Deposit – Payment Logistics

•  Benefits Enrollment – Personal Employee Decisions

•  Merit Review – Good News/Bad News

•  Total Compensation Statements – Value Proposition

•  Problems – Resolved Quickly

Employment Cycle of Life

Candidate

New Hire

Employee • LOA/

Sabbatical • Promotions

Alumni • Term • Retiree

Candidate Discussion

Candidate Discussion

Major Touch Points

Cycle Beginning Middle End

Candidate The Job Ad Initial Probing Discussions

The Offer

New Hire First Day Logistics

First Paycheck Discussion around pay reviews/increases

Employee Goals discussion Check-ins on Goals

Pay Review

Alumni Exit Interview Discussions with other current and former staff, candidates

How the employee is remembered

What other opportunities are there and why managers should care?

EVERY DAY:

•  Hallways

•  Before/After meetings

•  While traveling together

•  Over lunch (WITH CAVEATS)

New Hire Discussion

New Hire Discussion

•  Positivity

•  Honesty

•  Understanding

•  Short and to-the-point

•  Facts

•  Crankiness

•  Make up stuff

•  Empathy

•  Waxing

•  Speculation

Do’s and Don’ts

Employee’s Goals Discussion

Employee’s Goals Discussion

Legalities This is not intended to be legal advice, David B. Turetsky is not a lawyer and does not play one on television. All descriptions and facts contained herein are the property of Workscape. Any reproduction, description, or accounts of this presentation without the express written consent of Workscape, Inc. are prohibited. All rights reserved. Copyright 2010. Service mark 2010.

Legalities

The prevailing laws and corporate governance issues that are top-of-mind for shareholders and corporate boards that your managers, HR partners should care about:

1.  Pay for Performance – Executives and Employees

2.  Reporting requirements under TARP

3.  Lilly Ledbetter Act of 2010 – Fairness

4.  Healthcare Reform

Salary Increase Discussion

Salary Increase Discussion

Five Tenants to Good Compensation/Rewards Communications

1.  Honesty

2.  Hope or a Positive Tone

3.  Coaching

4.  Linkage to Performance

5.  Ownership

Incentive Communication Discussion

Incentive Communication Discussion

Parting thoughts

•  Don’t talk on an empty head

•  Ensure that all parties are ready for the discussion, especially emotionally

•  Make the environment comfortable

•  Provide lots of notice, if changes are necessary

•  Don’t rush

•  No matter what happens during the meeting, shake hands at the end

Acknowledgements

•  To my Parents for having me •  To HR Florida for inviting me •  To Workscape for paying for the trip •  To Director: Jonathan Corke •  To Actors: Kathleen, Jeff, John, Robert, Nancy, and Elise •  To you for prioritizing a few precious minutes of your life to

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Speaker Bio:

David Turetsky is the Director of Talent Management Strategy at Workscape. A sought after writer and speaker on the topic of compensation planning, Turetsky shares actionable best practices with his audiences that enable them to drive organizational change.

He has more than twenty years of experience including a wide variety of technology related projects designed to assist clients with the management of compensation and HR programs, such as the design and implementation of job evaluation programs, broad-based employee incentive plans, statistical evaluation of pay programs and a wide range of related human resources issues.

Contact Details

David B. Turetsky Director, Product Management, Talent Management Strategy

Workscape 123 Felton Street Marlborough, MA 01752 (office) 508-573-9474 (eMail) David.Turetsky@Workscape.com

http://blogs.workscape.com/