Insider Secrets to Ensuring a Successful Compensation Planning Cycle

Many compensation leaders are faced with the annual challenge of flawlessly executing a long and complicated compensation cycle both tactically and strategically. The reality is with tight timelines and even tighter budgets compensation planning can become more administrative than strategic.  Ever wonder how you can do both successfully?

In this webinar, the former VP of Compensation and HRIS for the NBA, Jean Casner, shares her insider secrets on how she has successfully implemented global compensation and total rewards programs throughout her career. Jeans shares her 5 secrets to a successful compensation planning cycle including:

1. Planning: 4 basics every successful comp cycle must have
2. Management: how to effectively include all HR, C-Level, & Manager roles in the process
3. Strategy: how to maximize your budget & avoid last minute re-planning
4. Reporting: how to communicate plan objectives and outcomes to HRBP's, managers and employees
5. Improvement: how to conduct an objective & constructive review of your process

1. Talent Takeaways webinar & podcast series Insider Secrets to Ensuring a Successful Compensation Planning Cycle Guest Presenter: Jean M. Casner Managing Partner , Crescere HR

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4. Insider Secrets to Ensuring a Successful Compensation Planning Cycle Jean M Casner Managing Partner [email protected] [phone] April 20, 2016 Simple HR Solutions @ Work 4

5. Today’s Topics Map the Current Process A Failure to Plan is a Plan to Fail If You Don’t Know Where You’re Going, How Can You Expect to Get There* Rules of the Road and Why They Matter… Show Me the Money Continuous Improvement * Quote from Basil S. Walsh 5

6. What You Will Learn Key elements of a successful process: Documented process map Detailed project plan Cross-functional team Clear governance policy Updated salary planning system Clear and crisp communications 6

7. I. Map The Current Process Six Sigma Steps A six sigma process is one in which the process is expected to be 99.99966 % defect free. 7

8. Mapping Session Participants Total Rewards HRBPs (at least 1 US HRBP and 1 Region/Country specific HRBP ) HRIS IT Payroll /Shared Services Finance (Bonus/incentive accruals; scorecard process, etc .) 8

9. Mapping Session Participants Other Potential Participants CHRO Benefits Secretary to the Board of Directors (If Board approval required for program(s), etc.) Legal (draft legal documents for program(s), etc .) Executives, people managers and employees 9

10. Outcomes Six Sigma Steps A six sigma process is one in which the process is expected to be 99.99966 % defect free. Picture of the current process Comprehensive timeline Resources involved Opportunities for improvement Steps that could be eliminated Highlights confusion regarding policies and practices Educational tool for new HR staff 10

11. Seeing is Believing… From This… To This… 11

12. II. A Failure to Plan is a Plan to Fail 12

13. Key Planning Steps Start early – at least 8 months before “GO LIVE” Assign a project manager – ONE person who is accountable for the entire process Identify team members and define roles Total Rewards Performance Management Talent Management HRBPs HRIS IT Finance Payroll Others, e.g., legal, tax, etc. 13

14. Clear Governance Governance/approval process Chief HR Officer (CHRO) CEO or Go/No Go decision maker ( may include BOD ) Others… 14

15. Governance Decision Tools 15 RAPIDx Decision CEO Direct Reports to CEO Head of HR CFO Example Decision 1 D I R I Example Decision 2 I R, P, X D, X R, I R = Recommend A = Agree P = Perform I = Input D = Decide X = Explain RAC I

16. Create a Timeline Create a detailed timeline Include all steps/handoffs during the process Start/finish dates Individual team members accountable for one or more specific steps in the process Regular meetings leading up to “Go Live” date 16

17. III. If You Don’t Know Where You Are Going, How Can You Expect to Get There?* * Quote from Basil S. Walsh 17

18. Considerations * Quote from Basil S. Walsh 18 Philosophy and/or program changes Compensation management Performance management Talent management Market data availability Policy changes (if applicable) Communications, training needs and media

19. Action Items * Quote from Basil S. Walsh 19 Update salary planning software Obtain: Company scorecard results (if applicable) Obtain Board of Director approvals (if applicable) Budget Approval - merit, promotion, incentive/bonus pool, other adjustment, key talent, etc.

20. IV. Rules of the Road and Why They Matter... 20

21. Content/Instructions 21 Deadlines and a ctivities to be completed Budgets Important philosophies and policies how promotions work incentive/bonus awards calculations, etc. Salary planning software training and access (salary planners only )

22. Expected Outcomes 22 Goals for the process Distribution of ratings ( forced, targeted or otherwise ) Merit awards based on pay for performance, etc. Market adjustments Key talent

23. Holdbacks 23 Planning Strategies HRBP global advance briefings

24. V. Show Me the Money 24

25. Prepare the Results Key metrics Budget vs. actual spend Pay for performance message alignment - performance vs. compensation recommendations Global/Country results Other metrics 25

26. Present the Results Trends and headlines - e xecutive summary Succinct Compelling Next steps Include: Impact to the bottom line Promotion results Key talent impact 26

27. Communicate the Results Communicate outcomes to people managers and employees Company, department and employee results Employee scorecard Difficult messages Key Talent 27

28. Continuous Improvement - Conduct an AAR (After Action Review) 28

29. Conduct immediately after each year end process Focus on intended objectives All participants must contribute to the discussion Use open-ended questions Document all feedback Determine changes (if any) for the next cycle Communicate outcomes 29 How Does It Work?

30. AAR Questions What was supposed to happen? What did happen? What went well? What needs to be changed? What should be done to improve the process next time? Closing comments (summary ) Next steps 30

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