Summary:
Sean Luitjens is the General Manager of Total Rewards Analytics at Visier. With over 25 years of HR experience, he brings a wealth of knowledge around talent acquisition and compensation and benefits to the table.
In this episode, Sean talks about the hesitation some HR teams have when it comes to sharing their data; the hurdles they might face when trying to do so; and how they can best communicate their data analytics to help other departments solve business problems.
Chapters:
- Welcome, Sean!
- Today’s Topic: Why and How to Share HR Data Effectively
[4:41 - 14:25] Why can’t we all just get along around data analytics?
- Different roles within an organization may use people data quite differently
- The importance of communicating the context around the data you’re sharing
[14:26 - 25:37] Where organizations can benefit from sharing intra-company data
- Addressing the “why” of how managers’ employees get paid
- Where the science of compensation intersects the art of being a manger
[25:38 - 29:49] The biggest hurdles you face when trying to share HR data within a company
- Deciding what data to show and how to communicate it to those outside HR
- Consider how other departments (e.g., finance and marketing) leverage company-wide data
- Thanks for listening!
Quotes:
“I think the philosophy from some compensation [practitioners] is, ‘everyone understands pay because they get paid.’ And managers sometimes get caught in the other trap which is, ‘I get paid so how complicated can it be?’ There has to be some type of translation between those two.”
“[Managers] want to be nice, but . . . everyone can’t be a 5 because then you can’t create the dispersion to keep the talent you want. ”
Contact:
Sean's LinkedIn
David's LinkedIn
Dwight's LinkedIn
Podcast Manger: Karissa Harris
Email us!
Production by Affogato Media
To schedule a meeting with us: https://salary.com/hrdlconsulting
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[00:00:02] Here's an experiment for you. Take passionate experts in human resource technology
[00:00:07] Invite cross-industry experts from inside and outside HR. Mix in what's happening in people analytics today
[00:00:15] Give them the technology to connect, hit record, pour their discussions into a beaker
[00:00:21] mix thoroughly and
[00:00:23] Voila! You get the HR Data Labs podcast where we explore the impact of data and analytics to your business
[00:00:31] We may get passionate and even irreverent that count on each episode
[00:00:35] Challenging and enhancing your understanding of the way people data can be used to solve real-world problems
[00:00:41] Now here's your host David Turetsky
[00:00:46] Hello and welcome to the HR Data Labs podcast. I'm your host David Turetsky alongside my trusted co-host friend, colleague
[00:00:53] From salary.com Dwight Brown. Dwight, how are you? David? I'm good
[00:00:56] I finally remember to put my mic right up to my mouth this time, which I almost never do on
[00:01:02] It's very effective in hearing you. Yes, so it's a good day today. I'm really I'm knocking it out of the park already and
[00:01:09] We are gonna have fun today because we have with us our friend
[00:01:12] Some call him simple, but I don't his name is Sean Lutjens. Sean. How are you? I'm good
[00:01:18] I'm already feeling a little concerned. I don't have one of these professional mics like you guys
[00:01:24] Feeling out of out of my depth when you spend enough time behind a microphone certainly not in front of one but behind one
[00:01:32] You realize that it makes you sound better. So and actually the things that come out of your mouth sound better, too
[00:01:37] I don't think I think I'm behind a microphone helping that but but we'll go from there
[00:01:42] Well, my mom always said I had a face for radio
[00:01:44] So and people have heard me say that a million times. So there you go and Sean you're definitely you have a face for video
[00:01:51] They say that now I I don't even know what to do with that
[00:01:57] Why don't you tell us Sean a little bit about your background a little bit where you are today, how about that?
[00:02:01] Sure. So currently at Vizier is the general manager of the total awards, you know business over there
[00:02:09] That that that we're launching and before that going way back to the last Millennium
[00:02:15] I've been around talent acquisition and
[00:02:18] Comp and bend so and for the most part around comp and bend and I think you know, like you weirdly enough we dig it
[00:02:25] And how we can help organizations kind of learn and get better in that space
[00:02:30] So won't go through the whole company people can find luchians on LinkedIn pretty easy or it's kind of natural selection
[00:02:36] And for those of you who have never heard of him before I don't know where you've been
[00:02:40] But Sean you've been in I've known about you for forever
[00:02:45] Especially from back from your Mercer days and
[00:02:49] And probably even before that but it's it's good to have you on the show again. No, it's great
[00:02:54] It's always always fun talking with you until we say hey Sean
[00:02:59] What's one fun thing that no one knows about you?
[00:03:03] I don't know that it's a
[00:03:06] Fun thing. I'm a huge soccer fan actually which I like to call football
[00:03:11] You know as real folks do over in the other the other country, so I'm a big Arsenal fan and so
[00:03:17] Gone through when they were good to bad and now we're reasonably good again
[00:03:20] And I have this weird goal of trying to make it to all 20 pitches in the Premier League one year
[00:03:26] Which if you are a football or soccer fan three go up and three go down every year
[00:03:31] So it's a little bit of a moving target
[00:03:32] Yeah
[00:03:33] So when I'm over I try to try to catch matches all over the place
[00:03:36] Does that include Wrexham are they not in the Premier League Wrexham is not the Premier League
[00:03:44] Couple leagues down I have part I have clubs that I've been to several times
[00:03:47] So at Queens Park Rangers, which I'm sure most Americans haven't heard of I've probably been to right
[00:03:52] I don't know 20 30 times having lived in London. I will tell you I went to Wembley to see a game and
[00:03:58] It was our match. It was just amazing
[00:04:02] Yeah, it's really cool and Queens Park like the stadium if you want to talk, you know in the US they talk about these old
[00:04:07] old stadiums
[00:04:08] You know built in 1888 right? I'm still there. I'm still concerning when you walk underneath it
[00:04:16] So don't walk out while you have to guess walk underneath it to get into the stadium, right you do yeah
[00:04:22] So Sean today we're gonna have a little bit of fun because what we're gonna be talking about today is
[00:04:28] didn't they teach us to share in kindergarten and
[00:04:31] Let's get to question one. So the question is why can't we just get along?
[00:04:44] And we have a lot of data in HR
[00:04:47] We don't really share analytics across HR let alone the entire business and when you and I were talking about this
[00:04:55] What did you mean when you were saying just get along around analytics?
[00:04:58] I think some of it comes from the well, I'm gonna throw out a you know an acronym
[00:05:02] So I sound like I know what I'm doing but they're okay ours. Oh, yeah
[00:05:06] So if you think about talent acquisition, right
[00:05:08] so recruiters are really measured a lot of times on two things and they're measured on time to fill a number of recs filled and
[00:05:15] Obviously if you're a recruiter without jobs to recruit for you're probably not a recruiter
[00:05:19] And so they want to get those things done. That's their metrics
[00:05:23] And as we know whatever is measured is what's done and so recruiters really jam on that
[00:05:28] They don't necessarily start to think about then being putting my comp nerd hat on
[00:05:33] compensation people theoretically want to
[00:05:36] Get people paid appropriately for whatever the goal is in the business
[00:05:39] And so there's a linkage right there where they're trying to drop somebody in to fill it as shortly as they can
[00:05:45] They don't really care. They're not measured. Do they stay over the long haul, right?
[00:05:50] In fact at some level you could argue I actually need turnover if the company's not growing
[00:05:54] I need to have some type of turnover
[00:05:56] Otherwise, I'm not recruiting for positions and that's just one example of where you know, you kind of have that
[00:06:03] Disconnect between businesses and you could go to comp and then you could go to things like business objectives
[00:06:09] You know when we look at it. Well, we've always been very insular and
[00:06:13] We've always thought that we were the only ones who understood these things and so therefore in the wrong hands quote-unquote other people
[00:06:22] It wouldn't be used effectively or appropriately right especially what we're talking about comp and market data or you know
[00:06:29] New hire statistics when it comes from recruiting
[00:06:31] well
[00:06:32] you guys don't understand because you know, you don't understand where we are in our business cycles or where people are and
[00:06:38] You know, we get so many wrecks
[00:06:40] We have a way of doing it where we put in a bunch of wrecks some are evergreen
[00:06:43] And so the statistics aren't gonna look right to you unless you know the context
[00:06:48] We see that all the time and it's not just an HR
[00:06:51] I mean people get territorial about their data for the exact reason you just said that
[00:06:56] You can't have the data because you don't know the context you would not you wouldn't know what you want to do with the data
[00:07:02] which
[00:07:03] Just perpetuates its lack of sharing. There's a couple interesting things that are there
[00:07:08] I think you know
[00:07:09] I know David you've talked about a lot of time the human and human resources or you know
[00:07:14] A lot of times we say, you know businesses don't hire people people hire people
[00:07:18] You know type of things, you know businesses don't sell products people buy products, you know, it's that type of thing and
[00:07:24] I think there's this dichotomy of what information do I give them right on one end, right?
[00:07:30] Because they if you know
[00:07:31] They're not gonna understand this and there's some validity to that because hiring managers, of course generally aren't hired
[00:07:36] I'm sorry not hiring managers line managers aren't hired to be you know
[00:07:41] Compensation professionals they have a day job that they're theoretically really good at. So what information do I give them?
[00:07:46] That's in context. So if I give them too much information, they don't know what to do with it
[00:07:50] But if I don't give them enough information you're not trusting it
[00:07:53] And so how do you roll that all up to give them really good context to make a decision and just
[00:07:58] Mentioned, you know comp planning is one of my favorite examples because you do it once or twice a year
[00:08:02] So how good is a line manager going to be at something once or twice a year?
[00:08:06] I do things every week that I suck at
[00:08:08] So how can someone really be good at something once or twice a year?
[00:08:11] I mean and you can't even train them for that
[00:08:14] There's no way to make them especially if it's a once or twice a year thing
[00:08:18] There's no way to make them an expert in it, but especially around where pay transparency is taking things
[00:08:25] We have to at least
[00:08:27] open
[00:08:28] their eyes a little bit to what this could be for them and
[00:08:33] Not make it an everyday thing, but at least make it a resource for them
[00:08:37] That they can check in on or they can look at every once in a while
[00:08:42] But it needs to be done with training and maturity
[00:08:46] Yeah, and the training I think the why sometimes because I think the how gets pushed pushed at them
[00:08:52] You need to do this for this reason. You need to do, you know your merit cycle because it's the right thing to do
[00:08:58] Theoretically, I'm kind of maybe it's a you know
[00:09:01] Rainbows in unicorns view but typically the line managers are you know have some smarts to them?
[00:09:06] So if you can explain to them why we're trying to do this to pay equitably and do things
[00:09:12] With a little bit of education then I think the how becomes a much simpler piece because they're like, oh now I get why
[00:09:19] Now let me dig in and figure out the how and I'm convinced that if you give them some context and just
[00:09:24] A little bit of workflow. They'll be able to figure that out because they're inherently smart
[00:09:28] Hopefully well a lot of times managers don't get that business problem
[00:09:35] they have to really understand that business problem though and
[00:09:39] To the extent of maturity, I think we've both dealt with a lot of situations where managers
[00:09:45] Have acted without having that level of maturity and I'm not saying this for all managers
[00:09:50] I know most managers do the right things for the right reasons
[00:09:53] But in the world of HR, especially when it comes to increases and things it becomes a very an emotional topic
[00:10:00] Not just for them, but their employees. So
[00:10:03] What can we do to make them?
[00:10:06] better
[00:10:07] It's not gonna be training. It's not gonna be you know
[00:10:10] It's not even that number of bats they get to use the data or to to be a part of it
[00:10:15] Well, I think we've talked in the past. I mean batting around this do people what percentage of people
[00:10:21] Which after we spoke last time I thought I'd throw this at you
[00:10:24] What percentage of people because I said I think most people want to be fair payers
[00:10:28] At the end of the day. So now I'm gonna put you on the spot and be like well
[00:10:32] Percentage of people do you think really truly would be fair payers if there weren't the bounds put in place and what people would be
[00:10:38] Like no, I just want to be a bad payer. I don't think it's about being a bad payer. I think it's about
[00:10:44] Giving employees what they want in order to be more popular to be happier
[00:10:49] So we put guidelines in place to constrain
[00:10:53] We give them market data to show and to demonstrate what what happens outside our boundaries
[00:10:59] But they run their business and they also because they deal with employees every day
[00:11:05] Yeah, they've got to be you know good boss bad boss on a shoulder, right?
[00:11:10] And I don't think anybody wants to be bad. I don't think anybody wants to be their best friend
[00:11:15] I mean, I'm sure many managers would rather be best friends with their employees
[00:11:19] but it's just not appropriate and so they've got to be they've got to do the right thing for the company as well as
[00:11:25] the employee and that takes a balance and
[00:11:28] If you ask me what percentage can be balanced I'll tell you it's a it's a normal distribution
[00:11:33] You know, you're gonna have tails on both sides
[00:11:35] You're gonna have people who are really bad at it and you can have people who are really by the book
[00:11:39] I'm gonna do it by the book and I'm gonna you know only give the right distribution the way the company tells me to
[00:11:45] No, I think that's fair. I think actually
[00:11:48] It's interesting. Can you say people, you know, as I mentioned, you know people hire people
[00:11:52] but I think you take it one step further people work with people and I think there's a little bit of a disconnect sometimes with
[00:11:58] Compensation, you know sending down the compensation planning merit matrix out of the ivory tower. That is compensation
[00:12:06] Not understanding that humans have to deliver that message and you know
[00:12:10] It's interesting when you get down to the bottom end of that merit matrix
[00:12:13] Mathematically, you're like I'm gonna give that person point five percent
[00:12:17] But when you actually have to deliver a message that point five percent of a small number is you know
[00:12:21] Not even a Netflix fee for the month right that that becomes difficult and how is a human
[00:12:27] Do you now relay that to a human and sometimes I think you know, that's the disparate piece of comp
[00:12:33] But I think comp sends that down and it's just on performance and this is the piece where
[00:12:37] Can you tie all the data together to talk about performance holistically and for pay equity?
[00:12:42] You know same job for the same work. How do you start to put that in place? So there's some
[00:12:46] Defense to that when you you actually give scores
[00:12:49] I think that'll help managers too if you can pull in business data from other places you can be like well
[00:12:54] This is this is these are some of the metrics
[00:12:56] The problem is you just highlighted a couple things that are comp focused that managers have no idea about like a merit matrix
[00:13:04] It's magic to them, you know comp ratio. They don't give a crap right?
[00:13:09] Explaining comp ratio to somebody means you have to abstract out a few layers
[00:13:13] You have to go back to market pricing and job descriptions and they go all the job descriptions are all crap
[00:13:18] Had you match the jobs where are the sources? Are they from our direct competitors, you know, blah blah blah and then you know
[00:13:24] Then you have to so they have to buy all that to get to
[00:13:27] Comp ratio and then you have to look at the different zones and say well
[00:13:31] There's only three zones or there are five zones and the okay. Well people are under men
[00:13:35] What are you gonna do about them?
[00:13:36] Are you gonna give them allow me to give an adjustment to minimum and people who are over-the-max who are giving?
[00:13:41] Lumps sums so you're abstracting when you talk about merit matrix. You're now abstracting rules guidelines
[00:13:47] philosophy
[00:13:49] Paying at market blah blah blah all that other stuff
[00:13:52] So to buy into even that merit matrix and even to get them to understand the guidelines that they're using
[00:13:58] Why am I using you know three to seven percent?
[00:14:01] For one group at one performance rating and then five to nine percent for another and then zero for another, you know
[00:14:08] I want to give everybody something. I want a peanut butter this and you're not allowing me to let me run my business
[00:14:14] Like what you hear so far make sure you never miss a show by clicking subscribe
[00:14:18] This podcast is made possible by salary comm now back to the show
[00:14:23] So there's a lot in there that we in comp especially in HR as a manager as well
[00:14:32] I find it that sometimes we're trying to build
[00:14:37] dogma
[00:14:38] Into our process in order to do the right things
[00:14:41] In order to do the right things but yet we're not at arming those people like I was mentioning before we're not arming them with
[00:14:47] The right information and insight to make the best job description
[00:14:50] To me and that's what I was saying with this quite earlier. There's all this potential information
[00:14:54] Yeah, you can throw it them
[00:14:56] So how do you distill that down into something that's meaningful?
[00:14:58] And I know you know one of the studies recently like I think a third of managers are doing this for the first or second
[00:15:04] Time right so not only do they not get to do it very often
[00:15:07] But you're gonna basically take all this comp speak and not have and try to translate it into human something that a normal human can
[00:15:14] Understand for somebody who's never done this and by the way the next time I have to do it again
[00:15:19] Assuming I'm still in this role is next year, and I have to go deliver a human message
[00:15:23] I mean, it's it's a really difficult
[00:15:26] Process that has to happen
[00:15:29] Although I still kind of sidebar. Why do we even do merit or increases once a year?
[00:15:36] I'm still a little boggled by that
[00:15:37] I mean, I think it's because we years ago had to I'm gonna show my age
[00:15:42] You had to go collect all the data do it and then you had to fax the payroll
[00:15:46] Company which many listeners probably don't know what a fax machine is
[00:15:50] they may but
[00:15:52] It's scary. I think it's an app on their phone exactly well, and it feels like a black box for people
[00:15:58] It's it's the perpetual black box of compensation
[00:16:02] With it because one of the things that we find too is that even working with the comp people
[00:16:06] I'm amazed at how often the comp people don't even understand those components that go with that
[00:16:13] So to your point of you know humans coming with the human message
[00:16:18] How do you even translate that if if you're the comp person and you don't even understand everything?
[00:16:24] Well, it's interesting the more data we get the more complex the merit matrix can be to your point David to the more
[00:16:30] Complicated it becomes so now you have a you know a lot of manager of a couple different units
[00:16:35] And he's getting handed down different numbers for different groups for different things and they're kind of like what the hell is happening here
[00:16:41] I used to be able to just get a spreadsheet that said 4% and email it
[00:16:46] And then magically it was gone, right?
[00:16:48] Well, and then you know if they have a global team, right?
[00:16:51] Well now the global team and I have a 4% for the US. I have a 9% for
[00:16:57] Singapore I have you know 7% for the UK
[00:17:01] Well, how do I figure out what's the right guideline for the right P?
[00:17:04] And can I blend the data or can it you know is this one process or do I do it by cut?
[00:17:09] What am I being asked to do and we've got to be very dead simple
[00:17:13] About getting to the right result for the employee and the manager
[00:17:18] While giving them the most expeditious as well as simple
[00:17:22] Interface and use cases that to get them to the right answer
[00:17:26] I think to quote someone very very famous, you know, because this is the type of stuff I read David
[00:17:31] So this is this would be really really important. Don't tell me you're gonna quote David Turecki. No, no
[00:17:41] What is it Cheshire cat said, you know, if you don't know where you're going all roads will lead you there
[00:17:45] So I think your point one like that David
[00:17:47] You know like sitting down and having a plan and a pay philosophy first that you can then and then try to get
[00:17:53] Somebody to you know read that in English. That's not from the comp department, right?
[00:17:56] Yeah, I was on a call the other day with some comp folks and I started counting acronyms
[00:18:03] And I've like I said, I've been around a long time
[00:18:05] So when I start getting wowed by the total volume of acronyms that we have you're like
[00:18:10] Well, how would you actually translate this?
[00:18:13] To someone that's a hiring manager that looks at this and you know
[00:18:16] I think the philosophy from some comp people is well everyone or everyone understands pay because they get paid
[00:18:21] No
[00:18:22] You know, so it must be simple right? Right and I think line managers sometimes get caught in the other trap
[00:18:27] Which is I get paid. So how complicated can it be and there's got to be
[00:18:32] some type of you know translation between those two well
[00:18:35] what's really funny about what you just said is when I worked at workscape and I was the
[00:18:40] basically the director of the talent management product line for product management and
[00:18:47] We got a new leader of our group and they said
[00:18:50] Can't we just put this stuff in a box and just say everybody gets the same rules everybody
[00:18:55] You know, we'll just start out and it'll be this and I said I've read about I don't know
[00:19:00] maybe a thousand client plans for things that they do and
[00:19:06] It goes beyond the name of the plan
[00:19:08] It goes into what the rules are and who's eligible for it and what operations are used and all that stuff
[00:19:14] And I said at the end of the day
[00:19:16] It's not just about the fact that there's just a bonus plan or not a bonus plan
[00:19:20] But there's a bonus plan. They may have a merit increase. They may have different
[00:19:25] hierarchies for the different pay elements and
[00:19:28] When you try and figure out is compensation simple and can we abstract?
[00:19:35] commonalities across companies and the answer is no you can try
[00:19:39] But what you'll find is is that everybody does things differently culturally but even within a company you're gonna have salespeople
[00:19:46] They're paid differently. You're gonna have executives. They're paid differently
[00:19:49] You're gonna have non-exempts for six exempts paid differently
[00:19:52] And so it's not even just about the company itself
[00:19:56] But also the constituent pieces of the company and how do you keep that simple for a manager?
[00:20:01] Who's making decisions across that?
[00:20:04] It's tough so I do think to your point that people are trying to say
[00:20:10] How do you make this easy and the answer is it's not easy because the business problem is not easy
[00:20:15] Yeah, I mean it's it's what makes some of us probably stay around comp and been a really really long time, right?
[00:20:21] Yeah at a high level. You're like the problem simple
[00:20:23] We're gonna pay the right people the right way at the right time done. Yeah
[00:20:27] Right now you start digging into it now you start digging into it, right and and all of a sudden it becomes highly complex
[00:20:34] Really fast and you know
[00:20:36] even it you know
[00:20:37] You go down the benefits trap hole and you want to start doing valuation or L tip value
[00:20:40] like it can be insanely complex and we we actually take some honor in that in comp and been on how complex and
[00:20:47] How smart some people can be about doing it and then you somehow have to realize you have to deliver that message
[00:20:53] Back up to 30,000 feet for somebody who actually I don't know if this will get edited David
[00:20:59] But doesn't give a shit about comp and been they just want to actually get through the process of
[00:21:05] Paying people the right way and get through and not have employees angry at them
[00:21:08] So they can go hit their actual metrics that they're actually measured on in their business as a manager
[00:21:13] Mm-hmm and and exactly and that's the problem is that getting on with what everything else?
[00:21:19] it starts with making sure your employees are happy and
[00:21:23] They're not going to be happy unless you give that focus and understanding to are they being paid fairly incorrectly and
[00:21:32] You know
[00:21:33] That's not easy. So but that's where I think I mean back to can they share, you know
[00:21:38] I do think the fairly the communication aside
[00:21:42] Can you add more data in so that you can?
[00:21:45] Basically defend why people are getting paid what and you know
[00:21:48] There's always going to be those amorphous thing
[00:21:50] You know client satisfaction and other weird things or you know, you don't want to make it so competitive
[00:21:54] I mean, that's the interesting thing about Merit Matrix
[00:21:57] It's not forced ranking but it is if you want to use it, right it can create a competitive
[00:22:03] You know area because obviously if someone gives all fives to all their employees the merit matrix doesn't really work the same way
[00:22:10] Well, actually it does you know how it does
[00:22:14] Because the fives get all the money and nobody else gets money, right? And so
[00:22:18] What did I say to client the other day if everybody is a five then nobody's a five
[00:22:23] Yeah, everybody's a five. Everybody's really a three, you know, so so you know, you have to balance it
[00:22:29] But even to that point though
[00:22:31] It is forced because on the performance rating scale to the to what you're going with us is
[00:22:37] That's a separate activity that's supposed to
[00:22:41] Encourage performance
[00:22:43] But unfortunately, it becomes a means to an end for pay right and loses its ability to influence the right things
[00:22:51] They're the right behaviors. And so that we get back to the merit matrix and we go well
[00:22:55] You know then we look at our fives and we go
[00:22:57] Well five is only getting between a zero and a five percent increase when our merit budgets five percent
[00:23:02] What the hell are we doing? The answer is you're giving a lot of ones twos threes
[00:23:08] Nothing because you're giving your fours and fives everything it's interesting
[00:23:11] I mean every I think that's the human piece of it to everyone wants to
[00:23:15] You know give everyone a beep be nice. I think it's the same thing
[00:23:18] I don't know how many clients to talk to day to say, you know, I want to pay
[00:23:22] Above median or above the average or above 50 whatever they want to phrase it
[00:23:26] And I'm not the brightest guy definitely not the brightest guy on this call
[00:23:29] But but not everyone can pay over the midpoint. I'm guessing about half and so
[00:23:35] How does how do you actually you know, most people want to do that and they can't and that's the same thing with performance
[00:23:41] Is you can't everyone can't be a five because you can't create the dispersion to actually keep the talent you want
[00:23:47] And I think it sometimes you tell people well if you don't do that
[00:23:50] You're gonna create this this people strategy that says I want to get rid of like for me when someone says they're all through all
[00:23:56] fives there's no differentiation
[00:23:58] So at that point your people strategy boiled down is I'd like to get rid of the good players and keep the bad players
[00:24:05] You know if you don't do that, right and they're like, well, no, that's not what I want to do
[00:24:08] I'm like, well inherently you're going to do that because they're gonna fall behind market. They just don't boil it down that way
[00:24:14] It's the intersection of the science of comp with the art of being a manager and
[00:24:19] That yeah that intersection be it really dangerous intersection and
[00:24:25] It's just it's tough. It's tough to navigate
[00:24:28] Well, I was gonna go to the extent of saying I agree with everything Sean said
[00:24:33] Except for the fact that we're talking about in this case just base pay
[00:24:36] In the case of variable pay I deal a lot of companies that say I'm gonna pay at midpoint
[00:24:42] We're sorry at the median apologize with the median for base pay
[00:24:46] but I'm gonna pay 75 percentile for performance on
[00:24:50] variable pay or total cash compensation because if we achieve our numbers
[00:24:55] then we pay out on variable pay and our numbers are targeted at the 75 percentile and so if
[00:25:02] We perform that person gets paid, you know more than the gap between
[00:25:07] base pay at 50th and total cash comp at 75th
[00:25:12] Hey, are you listening to this and thinking to yourself man? I wish I could talk to David about this
[00:25:17] Well, you're in luck. We have a special offer for listeners of the HR data labs podcast
[00:25:22] A free half-hour call with me about any of the topics we cover on the podcast or whatever is on your mind
[00:25:29] Go to salary comm forward slash HR DL consulting to schedule your free 30-minute call today
[00:25:38] Sean what will be some of the biggest hurdles that organizations are gonna have and I think we've already talked through this a little
[00:25:44] bit, but what do you think some of the biggest hurdles that our listeners are gonna face when they're trying to
[00:25:51] Add in this other data and make this or break down these walls within their company
[00:25:56] Yeah, so I think it's like you say we've spoken about it
[00:25:59] I think is the ability to add in additional relevant data because we have access to all that data and ways to
[00:26:05] Concatenate all that data together put that in in some type of format that we can be smarter about the way that we you know
[00:26:11] Spend money and compensation and benefits
[00:26:13] But then the complicated part the biggest hurdle to me is and how do we translate that back to human for people who?
[00:26:20] Aren't living a breathing comp and men all the time
[00:26:23] And so
[00:26:24] Blow that back out to line managers and then looping it all the way back to the beginning of the chat
[00:26:29] Like how do you loop this back to talent acquisition?
[00:26:31] Like if you actually hire them at this point
[00:26:33] They're not going to stay because you're gonna hire them so far below midpoint or so far over that you're gonna have a pay
[00:26:39] Transparency issue like there's a lot of that data
[00:26:42] But I think the biggest hurdle is the tools are out there to kind of aggregate this data
[00:26:47] But what do you show and how do you communicate it and how to deal with change management are really hard questions
[00:26:53] But there are hard questions that other groups have faced
[00:26:56] I think we talked about this a little bit before like if you talk about finance or marketing or even you know supply chain
[00:27:03] They've done a really good job of being able to leverage other pieces of data across the organization
[00:27:08] To be able to pull into their businesses to be able to do better at what they do so that
[00:27:14] You know supply chain knows they're not gonna have enough people on staff to be able to get a specific amount of product out the door
[00:27:22] But they're waiting for shipments to come in
[00:27:24] They just don't have the people to get it off the trucks then they know they're at the chains are forecast
[00:27:29] They know they're gonna have to do something differently in the same way
[00:27:32] HR really needs to set the context for being able to leverage all this other data so that when they give it out
[00:27:38] It's not just oh by the way here
[00:27:40] I'm gonna throw it over the wall to you and I think that the core difference for me is finance or if you're talking
[00:27:45] Supply chain for line managers they see it day in and day out and we talked about that on being able to
[00:27:51] Something that's a once or twice a year thing. The Y is real
[00:27:55] I mean, let's be honest most most people go to work to get paid
[00:27:58] They may love what they do and everything else
[00:28:00] But generally they go to work to get paid
[00:28:01] so it's not a trivial subject that you're asking someone to be an expert on and
[00:28:06] And understand the why and communicate that so I think yeah the data and pulling in all the right data and fundamental it through
[00:28:12] That's where I think you could share and get along as from the beginning those expertise and how you do that
[00:28:17] And then you call it in, you know Salesforce dashboard supply chain dashboards
[00:28:21] Those get boiled up from who knows how many trillion rows of data into something meaningful
[00:28:26] But how do you then translate that to something? That's as personal as pay to a human that also has the right context
[00:28:32] I think that's the biggest hurdle like the tool the tools are there. There's a lot to be learned from the other groups
[00:28:37] I think that's a really good point and we have to mature as a group, right?
[00:28:41] HR we got to stop stop talking in different speak talk in English or in whatever language you speak
[00:28:47] But talk more plainly. Yeah, I think that that translation of yeah
[00:28:51] Comp and bend to human is is really good and almost giving up a playbook of
[00:28:57] How they can translate those items
[00:28:59] I do think things like total reward statements or some type of documentation to be able to show why you're getting paid this
[00:29:05] You know thing is important versus just I like you or I don't like you
[00:29:09] But isn't pay transparency gonna make this simpler because we're gonna have to translate it into language. Anyways
[00:29:16] Dude, you said it was 30 minutes. How long are we gonna go? That's like setting it up
[00:29:21] Like yeah, I'm gonna grab a beer and pull up a chair here on this one. Yeah
[00:29:27] This one wait before you answer that then let me just leave that as food for thought for everyone
[00:29:33] And we'll say yeah, thank you Sean
[00:29:35] It was a wonderful conversation today and we'll leave it at that and then we're gonna invite you back to talk about that
[00:29:50] John, thank you very much. Thanks as always Dwight. Thank you so much. Thank you
[00:29:55] Thanks for being with us Sean and we'll look forward to the extended episode given the bond that David just dropped a little bit
[00:30:05] Thank you all for listening take care and stay safe
[00:30:09] That was the HR data labs podcast if you liked the episode
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[00:30:18] Thank you for joining us this week and stay tuned for our next episode. Stay safe


