Generative AI is revolutionizing the salary discussion, empowering employees like never before. Employees, armed with the knowledge and confidence to negotiate better compensation, are coming to the table ready to talk money, but are leaders ready for such transparency? In this episode of Transform Your Workplace, Nicole Blevins of Xenium HR discusses how employers can approach the compensation conversation with honest data and open communication in this new era of salary transparency.
GUEST AT A GLANCE
Nicole Blevins is the Senior HR Services Manager at Xenium HR, leveraging her B.S. in Business Administration from the University of Central Florida, a Masters in HR from Rollins College, and specialized training in Diversity, Equity, and Inclusion from the University of South Florida.
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🔊 Podcast: Transform Your Workplace, Sponsored by Xenium HR
🎙️ Host: Brandon Laws
📋 In his own words: “The Transform Your Workplace podcast is your go-to source for the latest workplace trends, big ideas, and time-tested methods straight from the mouths of industry experts and respected thought-leaders.”
COMPENSATION: A COLLABORATIVE EFFORT
Generative AI, no doubt, has had a massive impact on salary transparency and negotiation. Employees are now using tools like ChatGPT to determine salary ranges by entering their job titles and geographical information. This access to information marks a significant shift from the past when employers held all the leverage. With platforms like Glassdoor and LinkedIn, combined with generative AI trained on web data, employees can now approach negotiations with more knowledge and confidence. But what should leaders do now that compensation has become more of a collaborative effort?
“Employees have access to so much more data and information than they used to where employers really had all the power,” Nicole Blevins explained. That’s why employers must adapt to this new landscape by also being well-informed and transparent about compensation. It’s all about being prepared to share the company’s data and engage in open conversations with employees. She advised employers to use validated and verified information, ensuring that their compensation structures are well-supported, too. “Employers just really have to get savvy and have some method to the madness,” Nicole stated.
PODCAST EPISODE HIGHLIGHTS
Clarifying the Job Description
Brandon Laws: There are some clear steps that need to happen, I think, to get ahead of this and to be very transparent about compensation. And I think, honestly, it starts with job descriptions […] — having very specific written job descriptions by the title or role with the duties that they actually do plus the competencies — because once you get all that cleaned up, then you can actually take that to some sort of market data research. […] We will put all those job duties in there, and then you would also tailor it to the organization’s size and revenue, geography, all that. […] And I think just being very clear about philosophy and the way in which we’re treating compensation — just our methodology around it — is what employees need to hear.
Apples to Apples
Nicole Blevins: A lot of times employees aren’t educated on what goes into determining what compensation is, right? They might just be going online and seeing that an executive assistant at Google makes this much money, and I am an executive assistant, so shouldn’t I be making that much money? Well, you work at a small nonprofit as an example, right? And so you’re not comparing apples to apples to where that compensation is going to be the same as an executive assistant at Google or something like that. So I think really being able to have those conversations and educate employees a little bit on what all goes into compensation.
Communicating Compensation
Nicole Blevins: Explaining [compensation strategy] up front really helps employees know what to expect, and I think communicating in an all-team fashion like that shows transparency. […] Then also having those one-on-one conversations if and when questions come up, right? After that communication, an employee might have more specific questions or want to dive into their specific compensation, where they fall within the range, and how that was determined so that they have a better understanding as well. And I think that’s okay, and we as employers have to be okay with that whereas maybe we weren’t in the past.
Dispelling High Emotion
Nicole Blevins: Employers [need to be] okay with supporting their employees. If the employee says, ‘Well, I really need to make more money, and there’s this executive assistant job at Google making a ton of money, and I maybe want to pursue that.’ Like that’s okay, too, right? We all have our own unique goals and desires and just being prepared for that is okay. […] So I think it’s a tough conversation on both ends to have, and there are emotions on all levels happening. Just understanding that, going into the conversation, I think can make a difference that nobody gets offended […] by the data and the information that we’re trying to communicate.
Xenium’s Approach
Nicole Blevins: We want to meet with employers to really understand where they’re at and what their strategy is […] — just really giving some guidance and advice and strategy about what might work best for your workforce, depending on your industry and your revenue and where you are as an organization. […] And then really diving deep into the job descriptions, right? Are they accurate and up to date? Are they really reflecting the jobs that you have […]? And then putting that structure together for you and guidance on how to use that structure to be able to make decisions for new hires coming in, placing, and rearranging your existing workforce.
NEED HELP?
If your company needs a qualified HR team to support you with your compensation strategy, contact Xenium HR today.