HRO Today April 2016 - 40

Payroll
Outperforming Others
Payscale's 2016 Compensation Best Practices Report finds that pay matters to people. Consider these statistics:
of top companies gave pay
raises compared to 84 percent
of average ones
90%
Nearly half of successful
companies embrace transparent
pay practices compared to just
61%
of top performing
companies are
more likely to
offer larger
salaries for highly
competitive jobs
of pay transparency will become even more apparent
as Millennials, a notoriously open and transparent
generation, establish themselves as the dominant
demographic in the workforce.
The current communication process around compensation
at most organizations is not streamlined, leaving many
employees to reach their own conclusions about their pay,
which is often inaccurate. In fact, PayScale research finds
that two-thirds of employees who were paid at market
rate actually believed they were underpaid. So, it's not
even enough to overpay employees if organizations want
to keep them happy. Without an explanation about how
pay rates are determined, misconceptions could send the
best employees right out the door.
The shift that's occurred in recent years around
compensation websites offers good proxy for the need
for salary transparency today. Initially, employers saw
the emergence of these sites a bad thing, but today,
more employers have embraced the data provided by
these sites, using them to create benchmarks for various
positions. This data can also help determine compensation
adjustments for employees. The same sea change is
[40]
HRO TODAY MAGAZINE | APRIL 2016
40%
of other companies
needed in attitudes around compensation transparency.
Employers must understand that employee chatter around
salaries will never go away. Instead, organizations should
get out in front and manage those pay conversations and
embrace them as an opportunity for building a better
relationship with employees.
3. Paying employees based on their performance. Top
performing companies are also more likely to eschew
the traditional cost-of-living raise in favor of new payfor-performance
models. While sales departments have
long functioned on a variable pay model, top performing
companies are paying more of their employees based on
performance. For example, 39 percent of top performing
companies already have variable pay structures for their
human resources department, versus 31 percent of
average performing companies. These more successful
companies are also likely to have pay-for-performance
models in place across a wide range of departments
including finance, marketing, and IT. Similarly, top
performing companies are more likely (61 percent versus
54 percent) to offer larger salaries for highly competitive
jobs.

HRO Today April 2016

Table of Contents for the Digital Edition of HRO Today April 2016

HRO Today April 2016 - 1
HRO Today April 2016 - 2
HRO Today April 2016 - 3
HRO Today April 2016 - 4
HRO Today April 2016 - 5
HRO Today April 2016 - 6
HRO Today April 2016 - 7
HRO Today April 2016 - 8
HRO Today April 2016 - 9
HRO Today April 2016 - 10
HRO Today April 2016 - 11
HRO Today April 2016 - 12
HRO Today April 2016 - 13
HRO Today April 2016 - 14
HRO Today April 2016 - 15
HRO Today April 2016 - 16
HRO Today April 2016 - 17
HRO Today April 2016 - 18
HRO Today April 2016 - 19
HRO Today April 2016 - 20
HRO Today April 2016 - 21
HRO Today April 2016 - 22
HRO Today April 2016 - 23
HRO Today April 2016 - 24
HRO Today April 2016 - 25
HRO Today April 2016 - 26
HRO Today April 2016 - 27
HRO Today April 2016 - 28
HRO Today April 2016 - 29
HRO Today April 2016 - 30
HRO Today April 2016 - 31
HRO Today April 2016 - 32
HRO Today April 2016 - 33
HRO Today April 2016 - 34
HRO Today April 2016 - 35
HRO Today April 2016 - 36
HRO Today April 2016 - 37
HRO Today April 2016 - 38
HRO Today April 2016 - 39
HRO Today April 2016 - 40
HRO Today April 2016 - 41
HRO Today April 2016 - 42
HRO Today April 2016 - 43
HRO Today April 2016 - 44
HRO Today April 2016 - 45
HRO Today April 2016 - 46
HRO Today April 2016 - 47
HRO Today April 2016 - 48
HRO Today April 2016 - 49
HRO Today April 2016 - 50
HRO Today April 2016 - 51
HRO Today April 2016 - 52
HRO Today April 2016 - 53
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-chro-today-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/chro-today-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-1014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hrot-january-february-2014
https://www.nxtbookmedia.com