Innovations in Compensation: Leading-edge Practices & Programs

After an encouraging evening buffet and get together with the members of the various Boards, our Monday was filled with an engaging and productive meeting and a delightful (if a bit cool) dinner together.

Themes of the meeting:

  • The Art & Science of Working with Boards and Company Leadership.  Key lessons shared included:
    • Providing the broad-based view of the business and HR to anticipate questions from the CEO, CHRO, etc.
    • Discerning on not always wanting to spend.  Saying “no” helps set the table for “yes” later.
    • Educating through Executive Summaries and 1:1 meetings are key.
      • Make the “big” meeting a non-event through premeeting preparations.
      • Surface dissenters through the pre-read.
    • Facilitating big conversations as opposed to being directly involved in the conversation.
    • Working with the CEO without the CHRO.
      • Provides a sense of how well the CEO handles skip level conversations.
  • Implications of Future of Work for TR:
    • Creating Operational Leverage.
      • Need further discussion about how hybrid work impacts EBIDTA.
      • Beyond operational routine, how will AI change business costs?
        • Need more AI use cases for TR, like:
          • Job Pricing
          • Personalized benefits packages
          • OKR drafting & tracking
          • Job matching during acquisitions
    • Pay Transparency’s Unintended Consequence.
      • Most organizations are NOT sharing the full pay range in job postings.
      • Concern was raised about how pay transparency creates INTERNAL discussion about why an EE’s pay is at a certain level. 
      • Emphasizes the need to ensure leaders and HRBPs are prepared to manage these discussions.
      • Median Underpaid Gap slide – NEXT PRACTICE! (MSFT and Vertex use this).
        • Simple view of data story.
  • Systems thinking for Incentives, Benefits & Job Architecture.
    • Most organizations are struggling with creating LEADER ACCOUNTABILITY even though they have well defined behaviors.
    • Most leaders lack understanding of equity design.
      • In 2023, Target helped its Executives understand PSUs (Performance Share Units (PSUs).  Dow is focused on this for 2024.
    • Discussed that well-being doesn’t get the money back out.
    • Global architecture is fundamental for enabling:
      • Workforce Planning
      • Pay Transparency
      • Market Based Pay

Resources (available in downloads or links below):

  • TR Board benchmarking:
    • TR structure, TR remit, partners and other key organizational details.
  • Pay Equity & Pay Transparency – shared by Pete Manias, Microsoft.
  • Future of Work – shared by Kevin Martin, i4cp’s Chief Research Officer.
  • i4cp Skills Database Guidebook:
    • Delta designed their approach using this as foundation.
This meeting is exclusively for members of the Total Rewards Leader Board. If you'd like to participate, please contact us to see if you qualify. If you are an i4cp member, please log in to access the registration/meeting details.
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