With 40% of workers planning to leave their jobs, and 11 million job openings available, every organization has retention of top performers top-of-mind. And with compensation playing a central role in employee decisions to join, stay, or leave your organization, HR leaders must strategically and thoughtfully address compensation at every step of the employee lifecycle — with data.
But managing compensation throughout the employee lifecycle can be a tedious, messy process. Mistakes and cut corners can impact retention and offer acceptance that strip your business of institutional knowledge and stack up replacement costs.
This blog explores how OpenComp’s compensation software can improve your interview process, increase your offer acceptance rates, and uplevel your quarterly reviews and merit cycles, so that you can build and retain your all-star team.
How to improve your interviews with better compensation planning in OpenComp
Nothing is more foundational to a healthy employer-employee relationship than the interview process. Just as your organization is evaluating a potential hire, your potential hire is evaluating you. More and more employees are looking for signs that their potential employer is “mindful, ethical, and transparent,” and they’re turning to conversations about compensation to make that judgment.
If you’re prepared to have that conversation you’ll be on the way to landing top candidates, at the right compensation for your business. If you’re not, you risk going through a full interview process just to find out you’re misaligned on compensation or even overspending to land top talent, which could price you out of meaningful future merit increases and/or create inequitable pay practices across your organization.
Effectively preparing for compensation conversations during the interview process begins with building a proper compensation foundation. Most critically, organizations need to define and communicate a compensation strategy, construct pay ranges based on the most relevant comp data available and share them with candidates, and establish which of their roles (if any) they may be willing to flex their policies for.
Companies that use OpenComp increase offer acceptance to 83%, 17% above industry average! Schedule a demo today.
Organizations use OpenComp’s Range Builder to create professional-grade pay ranges in just three steps to form the foundation of their compensation strategy. It all happens in minutes. Within Range Builder’s guided onboarding:
- Choose your cash and equity mix
- Select location-based pay policies from provided options
- Toggle your compensation range width
The pay ranges created in Range Builder establish guardrails around how you’re willing to compensate employees, ensuring that you stay on-budget and maintain fairness during the interview process. And if flexibility is needed, custom settings allow you to modify policies by each job family, so that you can adjust a range in reaction to specific candidate needs or capabilities.
Backing all of Range Builder is OpenComp’s industry-leading dataset, sourced directly from our thousands of customers. Integrations with leading HRIS providers allows for real-time comp data collection, ensuring your pay ranges are based on compensation data that’s most relevant to your organization.
OpenComp Range Builder enables you to sidestep the complexity of traditional pay ranges, so you can be prepared for any compensation conversation in minutes.
Close your top candidates with offers made from predictive analytics in OpenComp
Often, recruiters or hiring managers make independent pay decisions that unintentionally misalign with their employer’s compensation plan. Instances of “rogue recruiting,” where out-of-policy offers are sent for internal approval, create frustrating delays that cause a candidate to lose interest in an employer.
To avoid running into this common issue, it’s imperative that you make sure:
- Your entire hiring team has access to your most recent pay ranges or benchmarking
- Your recruiter has created an offer that aligns with both your candidate’s and your company’s priorities.
- Your candidate’s offer has been reviewed and signed off on by all relevant stakeholders.
OpenComp’s newest tool, Intelligent Offers, ensures you’re following these best practices by surfacing critical compensation data at the point of every decision. Now, when a recruiter or hiring manager begins creating an offer, they’re served with the exact information they need to craft an on-policy offer that’s good for your business and free of biases or mistakes. OpenComp’s compensation software also shows historical acceptances and rejections, so that your recruiters and hiring managers can optimize the offer for acceptance while remaining compliant with company policy.
To ensure that the offer gets to candidates quickly, Intelligent Offers enables you to create an automated approval workflow, so that each stakeholder can take action on a new offer as quickly and easily as possible. The same information shown to your frontline recruiter or hiring manager when the offer was created is delivered at every point in the approvals chain, ensuring that your entire team is making decisions based on the same comp data. Once approved, Intelligent Offers gets your offer to candidates as quickly as possible by auto-generating an offer letter for you.
OpenComp Intelligent Offers helps you close your top choice candidates by unifying the compensation data, people, and process needed to create your best offer.
Take a deep dive into Quarterly Reviews with Pay Range Insights inside OpenComp
Today, most companies have adopted the practice of evaluating their employees' performance on a quarterly basis. However, alongside performance reviews, high performing companies know that they should also be assessing employee compensation and leveling quarterly. If they don’t, they risk missing opportunities to correct misleveled employees, and to adjust the compensation of their highest performers.
Retaining your mission-critical employees requires that you adjust pay appropriately when employees exceed expectations, and that you address and correct any pay discrepancies that may have crept up since an employee started.
Housed within Range Builder is the Range Builder Analytics screen. This 360° view of your entire organization’s compensation positioning allows you to perform like-for-life comparisons of employees, surface and correct any pay discrepancies, and deliver performance-based increases. Fully normalized, Range Builder Analytics eliminates any need to perform manual calculations in order to compare two employees who may be located in different geographical areas. And the visual display of aggregate comp data means you can make comparisons in just seconds.
OpenComp Range Builder Analytics enables you to easily deliver the full value of a quarterly review, so you can improve the retention of your most valuable employees.
Run smoother Merit Cycles with simplified workflows & standardized assessments in OpenComp’s compensation software platform
Whether they occur annually or bi-annually, merit cycles are the top-of-mind compensation moment for all employees within your organization. And with so much employee focus on the outcome of this once or twice a year event, merit cycles are make-or-break when it comes to employee retention.
Handled poorly, your merit cycle puts you at a real risk of losing your top performers. Today’s employees expect their employer to have clearly defined guidelines that determine merit increases, streamlined workflows that deliver evaluations and adjustments to employees on time, and open communication and transparency around the merit cycle process. Otherwise, employees may start to doubt the fairness of their review, and could begin searching for a new role.
Companies that use OpenComp increase retention 87% on average! Schedule a demo today.
But when handled well, even employees who may have been expecting more out of their merit cycle review should still remain with your business. That requires transparency and trust between the employer and employee, which can only be built through clear communication around standardized leveling & guidelines, standardized performance assessments, and clarity into how decisions are made.
Adjustments, OpenComp’s upcoming tool launching later this fall, wraps all of those requirements into one simple-to-use interface built for hiring managers and HR leaders. Within the tool, hiring managers can deliver pay adjustments based on standardized guidelines and criteria that you as an organization decide to set. The logic behind a proposed adjustment then batches employees together, so that merit increases are evaluated on a like-for-like basis, and so that you can keep a closer eye on your organization’s finances by tracking where and why you’ve allocated budget.
Behind the scenes, Adjustments facilitates in-app collaboration and communication, as well as auto-triggered approval flows, so that you’ll never be left searching through your inbox to try to manage your merit cycle again.
OpenComp Adjustments has everything you need to create better communication and trust between employer and employee, eliminate biases in merit cycle reviews, and run smoother merit cycles with digitized workflows.
Share company milestones with employees from OpenComp's compensation software
Healthy, high growth organizations that effectively manage employee compensation are poised to hit major company milestones, backed by the mission-critical team they’ve built and retained. But alongside that success comes a requirement for recalibration; the need to adjust your pay policies to represent the new status of your organization.
OpenComp’s proprietary compensation dataset, found within the Market Pulse solution and sourced directly from our thousands of customers, enables you to easily update your compensation benchmarks as your company matures. It’s segmented so that your policies and insights are only built off of compensation data from companies that compare to you, and integrated across all of our tools, so that the strategy you’ve built in OpenComp can be kept up-to-date in just a few clicks.
Analytics and insights recalibrate automatically with your new benchmarking, ensuring that you won’t have to do any manual work to surface where market adjustments may be needed, or where employees may have fallen out of your new pay ranges.
OpenComp Market Pulse enables you to spend your time implementing necessary changes to your compensation strategy, instead of attempting to manually uncover insights while you risk losing your highest performers.
OpenComp’s compensation software solutions are built to allow your organization to manage compensation end-to-end across the entire employee lifecycle. Don’t wait until retention is a problem, get started hiring and holding onto your all-star team today.