Managers currently do not place a high value in performing pay activities, do not feel accountable for these activities, and often lack confidence in their ability to perform them.
Our Model for Effective Manager Pay Engagement
Effective Manager Pay Partnership
The three key elements of effective manager pay partnerships are value, accountability, and ability.
Creating successful pay partnerships with managers can ultimately lead to a 38% improvement in employees' effort and a 55% improvement in their intent to stay.
Managers should perceive differentiation and effective pay communication as beneficial to the organization and themselves. Convince managers of this by building a business case for their involvement in pay activities.
- 9% increase in discretionary effort
- 14% increase in intent to stay
Managers should feel compelled to differentiate and effectively communicate about pay. Foster manager accountability for pay activities by using high-impact "hard" and "soft" accountability approaches—soft accountability in particular can have a significant impact with relatively little investment and disruption.
- 13% increase in discretionary effort
- 18% increase in intent to stay
Managers should have the confidence and ability to differentiate and effectively communicate about pay. Ensure managers have the knowledge, skills, and support they need to be effective pay partners through simple training and active learning they can easily apply.
- 16% increase in discretionary effort
- 23% increase in intent to stay
Download an excerpt of Engaging Managers in Compensation.
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CEB Total Rewards Leadership Council helps members build the business case for manager pay engagement to both managers and senior leadership; ensure manager accountability; and develop manager pay skills.
Read how we partnered with CSC to provide compensation communication support.
...helped [managers] carry out performance and merit conversations more smoothly and successfully this year than in the past."