Why Small Businesses Need Comp Software
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Why Small Businesses Need Compensation Software Finn Andersen Sr. Manager, Small Business Sales Paul Dutton Senior Account Executive
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Transcript of Why Small Businesses Need Comp Software
Why Small Businesses Need Compensation Software
Finn AndersenSr. Manager, Small Business Sales
Paul DuttonSenior Account Executive
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Presentation Notes
Back ground… We’re experienced bros.
The Way We Work Has Changed
Data Driven Decisions
TransparencyNew Expectations
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FINN: I wanted to start the conversation out today by talking about how the “The Way We Work Has Changed” New Expectation And with that diverse workforce we are seeing new expectations from both employees and employers. Employers are expecting more out of their people, jobs are becoming more specialized making it harder to attract and retain top talent, while Employees want to work at places where they are treated fairly and are contributing to the overall success of the organization Transparency One of those ways is through transparency, organizations today work more collaboratively and communicate more to their employees Data Drive And no matter what team or department, decisions today have to be made with the most up-to-date data. Transparency doesn’t work with out data to back up decisions. PAUL:
Performance & Engagement
Recruitment
RetentionBudget & Revenue
Compensation is the Keystone
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FINN: And at PayScale we realized that having a Compensation Strategy really is the keystone to an organization’s success. It impacts of all of these areas Recruitment & Retention Budget Motivation and Engagement Opportunity and Growth PAUL: We work with a lot of small companies who need help deciding the order in which to tackle HR initiatives. Payroll, budgeting, performance reviews…. Compensation really should be the starting point for all of these things to build upon.
Why Now?
Compensation is your largest expense
Missing out on potential growth opportunity
Making the decisions with data
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FINN: Why now? Compensation is your largest expense - Comp is 30-50% of revenues, how great would it be if you could cut overhead for your organization? Missing out on potential growth opportunity - Yeah saving the money is good, but if you haven’t hired and retained top talent, how can you take your organization to the next level? Making the decisions with data - The days of guessing or using out of date information. In order for an organization to be successful and grow with the right people. Organizations must have the the most up-to-date information and feel confident that decisions are backed by data. PAUL: Becoming increasingly easier for employees to find “free” market data. Therefore comp is no longer the secretive process that it used to be. If you’re growing and adding more money to your payroll it is crucial to tackle compensation at the onset of any growth. Being proactive is the key, as opposed to hiring a new lot of ees, and then looking back to discuss data and comp. You’ve already gone too far.
You are not aloneUse your Market Reports to create pay-bands for every title/level
Of all our clients….roughly 40% have less than 100 employees.
More than 100 Employees
Less than 100 Employees
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FINN; Before we go any further, Paul and I want to make sure, that you know, as a small business, you are not alone ^^^ Paul and I work exclusively with small businesses. Comp isn’t just for the big guys. That’s a BIG misconception. We’d stand firmly behind the other side of that, it’s even more important for small business.
Gained competitive understanding of
Labor Markets
Provided Executives with confidence in making
top level decisions
Eliminated the conversation about Compensation
Providing Confidence at …
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FINN: Speaking of small businesses, this is a perfect example …. Paul you worked with Filament Games… PAUL: Filament Games, a tech company based in the midwest really was struggling with this change in the way they worked- Their executives were seeing massive growth (Growing 3x in 3 years and needed guidance for budgeting Very specialized jobs, computer video game designers. Feared there was no data to help them Being in the mid-west they had trouble recruited tech talent that typically resided on the Coasts Many employees questioned if they were being paid fairly (Old vs NEW) FINN: We were By developing and implementing a compensation strategy they were able to Read BOXES And they did this by using…
o Benchmarkingo Labor & Market Reportso Analytics Dashboardo Executive & Employee Reports
PayScale Insightclear, visual, real-time
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FINN _ able to do that by using PayScale Insight, a clear, visual, real-time solution that allows organizations to build and launch a compensation strategy Read above…
Get Pay Right
We’ll help you clearly articulate & translate each position into relevant market data. If
you have a unique title, or a hybrid role—we will work closely to nail down all of the
details of that job and get you usable results. When it is necessary, we can
collaborate with you to define the levels of any position by adjusting factors like
experience, education, responsibility, and skills as needed.
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FINN It’s all about getting Pay Right, and what that means to your organization One thing that makes PayScale unique is our data 250 Pay factors 53 Million Salary Profiles 15,000 job titles PAUL: Small companies know their jobs are unique and we recognize that. Filament games came to us, very skeptical that anyone could help them. Here’s an example of a tough job we ran for them: Example Software Developer with Java vs C++ both with the same title With this information we can ensure you are paying for the right skill set and level of talent Other options? Free data traditional? Could end up costing more! Lead you down a dark and scary path
Reports Made Easy
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FINN These are a couple of screen shots form the Insight tool. Hopefully illustrating some of the steps used to start developing what was once a difficult process into something very intuitive and straight forward. Paul: anything to add?
Improve CommunicationCustomize total comp-statements to show employees that you are paying for more than just their base that’s paid out. Instill confidence in your
staff, and in the work you do to keep their pay and benefits competitive.
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FINN: Once a plan comes together, you can begin taking the next steps with the data backed decisions and transparent conversations around pay PAUL: Open lines of communication on a once emotional subject allows the employee and employer to thrive. FINN: A lot of small companies think only large companies have the resources to produce what we’re looking at here… an employee compensation statement. It summarizes the total cost of Pay/Benefits/perks… basically what the true value of an employee is to the org PAUL: Just being able to take the time to show this, makes them more attractive to an employee. It shows value.
Confidence in Comp• Have confidence when talking to Executives, and employees
• Real-time compensation planning with departments & managers
• Communicative value to employees
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FINN: Read bullet points PAUL: An interesting by product of partnering with PayScale is the career education for anyone who becomes a user of our tool. They're learning very powerful workforce management skills.
o Recruit for competitive roles o Retain top talento Engage your workforceo Gives confidence
HR
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Your role? Different benefits….. FINN: read above PAUL: Save HUGE amounts of time, build confidence and simplify a difficult process
o Strategic planningo Focus on growtho Create pay for performance culture
Business Leaders
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FINN Talk about choice lunch here Read above PAUL: Visibility into the companies largest expense…. P4P… soooo hot right now.
o Budgeting for Department costso Team productivityo Communicating Comp
Managers
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FINN: read above PAUL: Managers are the front lines when it comes to comp. They are ones discussing comp and reviews. Having visibility into the ees career path helps in anticipating conversations FINN: PayScale and the PayScale data can empower managers to operate in the structure you’Ve provided them.
o Empower and inspireo Create culture of transparency o Feel valued
Employees
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FINN: MOST IMPORTANT!!!!!!!!!!!!!! PAUL:
Questions?
Visit our blog:http://www.payscale.com/compensation-today
Request a demo: http://resources.payscale.com/hr-request-a-demo.html
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Add filament games link: Maybe choice lunch as well
Visit PayScale.comto learn more
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Now I am going to take a few minutes and show you PayScale in action… no I’m not
