getting from “b” to “c” with...

GETTING FROM “B” TO “C” WITH COMPENSATION

NANCY KASMAR, MS, SPHR, CCP, SPHR-SCP

MT BAKER SHRM CHAPTER

MARCH 11, 2015

Compensation Connections, LLC

In the compensation alphabet, "B" isn’t just the letter before "C".

The two letters need to be connected.

Compensation Connections, LLC 2

We're here today to talk about what that means and why it's important to you.


Our turnover is going through the roof.

Why can’t we fill this position?

People here just don’t care about the work we do.


We're doing a great job keeping our employees.

We only have two open positions to fill!

Our employees really understand the mission of the company.


Connecting your business strategy (B) to your compensation strategy (C) leads to

more positive comments.


B = Business Strategy

Every organization has a business strategy.


Strategy CompassResults: (GE)

Establish roles and goals, reward for getting the job done. Exit those not

on the same page.

Mission: (Theo Chocolate)When a company practices what they stand for, their

brand becomes a movement.

Customers: (Nordstrom)Create a great customer

experience and customers will be loyal to us.

Institution: (Johnson & Johnson)People are lucky to have a job here. We

are the leaders in our industry. The company founders gave us a proud

tradition.Execution: (UPS)

We know this business – get the details right and the rest will follow.

Work Team: (Quicken Loans)We are team driven. There is no “I” in team. Work together, win together.

Shareholders: (PACCAR)We are here to serve the

shareholders of this company.

Workforce: (Southwest Airlines)Our people are our greatest asset. Be loyal to

them and they will be loyal to us.

Management Compass concept courtesy of David Cichelli of the Alexander Group Inc.

Customer Focus: Nordstrom“We have a longstanding

commitment to provide our customers with the best

possible service every time they shop with us. We do

everything we can to make them feel welcome, respected and comfortable. Our focus is and always will be to provide our customers with a great

experience and to continually maintain our strong and lasting relationship with them. We ask all of our people to always use

good judgment and to treat customers in the manner that they would like to be treated.”


Workforce Focus: Southwest Airlines

“We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.”


Mission Focus: Theo Chocolate

“We’re dedicated to making our world a better place. And we’re finding ways to do it through our passion—bringing out the best of the cocoa bean. We are all connected. We touch one another’s lives in incredible ways.And we are responsible to and for one another. From the cacao farmer in the Congo, to the truck driver in Seattle,to the chocolate lover in Philadelphia—there is a thread that runs through us all.”




Beyond our menu and our beer, what makes us special is the connection we have to our community. For us, that means not just donating time, product and manpower to other local businesses, but also doing what we can to ensure the sustained health of our local economy and community.

Compensation Connections, LLC

http://www.bbaybrewery.com/#!localconnections/c19tn



Microsoft, REI and Boundary Bay Brewery have each identified their business strategy for us.

Even if you have never seen your organization’s strategy written out like theirs, your organization has one.




Even if you have never seen your strategy written out, your organization has one.

It’s the basis for how decisions are made.




Even if you have never seen your strategy written out, your organization has one.

It’s the basis for how decisions are made.

When in doubt, ask, “Why are we in business?”




What’s Your Strategy?


Discussion Time!

Select someone at your table to lead a short discussion about business strategy. Go around the table or just let people chime in.

Here’s some suggested questions:• Who knows their organization’s business strategy?• Which one is it of those on the compass?• Why do you think so?

Ready, set, go!


Strategy CompassResults: (GE)

Establish roles and goals, reward for getting the job done. Exit those not

on the same page.

Mission: (Theo Chocolate)When a company practices what they stand for, their

brand becomes a movement.

Customers: (Nordstrom)Create a great customer

experience and customers will be loyal to us.

Institution: (Johnson & Johnson)People are lucky to have a job here. We

are the leaders in our industry. The company founders gave us a proud

tradition.Execution: (UPS)

We know this business – get the details right and the rest will follow.

Work Team: (Quicken Loans)We are team driven. There is no “I” in team. Work together, win together.

Shareholders: (PACCAR)We are here to serve the

shareholders of this company.

Workforce: (Southwest Airlines)Our people are our greatest asset. Be loyal to

them and they will be loyal to us.

Management Compass concept courtesy of David Cichelli of the Alexander Group Inc.

Connecting B to C


Connecting B to C

Walmart Financial Results: 2/19/2015 Announcement

"We have work to do to grow the business. We know what customers want from a shopping experience,and we're investing strategically to exceed their expectations and better position Walmart for thefuture," said McMillon. "Our first priority is to run great stores and clubs. We will continue to integrateour physical locations with a great e-commerce and mobile commerce business. We're strengtheninginvestments in our people to engage and inspire them to deliver superior customer experiences. We willearn the trust of all Walmart stakeholders by operating great retail businesses, ensuring world-classcompliance, and doing good in the world through social and environmental programs in ourcommunities."


Connecting B to C

Means setting your total rewards mix to support your business strategy.


Connecting B to C


B:C

Connecting B to C

Make the Connection: Base Pay

IBM will specifically target a portion of our salary investmenttoward new Market-Based Adjustments (MBAs) designed to ensure thatemployees are paid competitively. This reflects IBM's commitment tocompetitive pay – one that has been challenging to meet when market payrates move quickly for high-demand skills. MBAs will be used to increasebase salary for employees in eligible job roles and countries where pay islagging the market.


Connecting B to C

Make the Connection: Incentives


Connecting B to C

Make the Connection: Benefits

“We pay at or a little less than the market. But our benefits areexceptional. Employees usually don’t work a full 40 hours per week, andare paid their full check anyway. We pay generous vacation and sick time,we pay the entire healthcare premiums for all our employees and theirdependents, and we put 15% of their pay into their pension every year.”


Connecting B to C


To get B and C connected:Use your insights about the organization’s business

strategy to design your total rewards plan.

Communicate the plan to everyone

Connecting B to C


Connecting B to C

Tell Everyone


Connecting B to C

“I am happy to announce ….”


When C Follows B

Your compensation strategy supports the business strategy and rewards what’s

important.


When C Follows B


If C isn’t following B: Our turnover is going through the roof.



When C Follows B

If C isn’t following B


When C Follows B



Photo by: AKS

When C Follows B



When C Follows B


If B and C are working together

B C

When C Follows B

If B and C are working togetherBusiness Strategy: Mission

“Theo’s goal is to provide its employees compensation that is competitive with othersimilar companies in the local market place. We strive to offer total compensation thatis fair, equitable and positively motivates employees. In developing compensation andbenefit plans, Theo balances these programs with the company’s business conditionand financial resources. “


When C Follows B

If B and C are working togetherBusiness Strategy: Workforce

“We are committed to provide our Employees a stable work environment with equalopportunity for learning and personal growth. Creativity and innovation areencouraged for improving the effectiveness of Southwest Airlines. Above all, Employeeswill be provided the same concern, respect, and caring attitude within the organizationthat they are expected to share externally with every Southwest Customer.”


When C Follows B

If B and C are working together Business Strategy: Team


When C Follows B


Everything works.

B+C

When C Follows B


When C Follows B


We believe it's important to offer all employees health care benefits they can afford. Part-timeemployees who work fewer than 20 hours per week can enroll in health care coverage. REI pays 100percent of life insurance coverage and 60 percent of the premium cost for employee-only medicalcoverage. Optional dental coverage is also available. This is exceptional in the retail industry. Mostretailers do not subsidize coverage for their part-time employees.

When C Follows B


Our turnover is going through the roof.




We're doing a great job keeping our employees.

We only have two open positions to fill!

Our employees really understand the mission of the company.


Nancy Kasmar, MS, SPHR, CCP, SHRM-SCP

Principal

425-591-4539

www.compensationconnections.com

47Compensation Connections, LLC

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