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Part 1: The Way You Compensate Impacts Your DEI Strategy

183:906269490 • October 23, 2023

Misconceptions about DEI that could be impacting your organization

There are a lot of thoughts and opinions on DEI, what it means, how it should be implemented, etc. As a sales compensation advisor, I have a unique perspective on DEI strategy as it both affects and is ultimately affected by sales compensation programs.


But before we can discuss this, it’s important to establish our understanding of DEI and how we’ll be using the terminology to apply it to sales compensation.


Diversity: This refers to the makeup of your workforce population and the amount of diverse backgrounds, including gender, race, age, sexual orientation, etc. The value of diversity comes from the expansion of different opinions, vantage points, and backgrounds to the mix of business actions and decisions.


Equity: This refers to the dispersion of opportunity, whether that be related to pay or accessibility of promotion. Equity is intimately tied to compensation program practices and processes throughout the employee life cycle.  


Inclusion: This is the cultural element, referring to the way people feel in their organization, whether they feel included and treated fairly. The value of inclusion translates to the participation of a diverse population at all levels of the organization, and benefits include higher levels of engagement and belonging.


While there is no legal requirement for all organizations to be DEI compliant, many businesses and institutions recognize the importance of DEI initiatives in creating a fair, inclusive, and innovative workplace. It can lead to better employee morale, increased productivity, and a more positive corporate image.


While the benefits of DEI initiatives are clear, there are a lot of misconceptions about what exactly it means to be DEI compliant. Below are five common misconceptions that highlight the importance of building diversity, equity, and inclusion into the very DNA of your organization—the processes, systems, and documentation that you operate with.


Misconceptions about DEI


1. DEI is Just About Hiring Quotas: A common misconception is that DEI is solely about meeting diversity hiring quotas. In reality, a quality DEI strategy is focused on creating an inclusive workplace where all employees, regardless of their background, feel valued and have equal opportunities for growth and advancement.


2. DEI is Only About Race and Gender: While race and gender are vital aspects of DEI, it’s not limited to these factors. DEI encompasses a wide range of characteristics, including age, sexual orientation, disability, and more. A meaningful DEI strategy is about recognizing and valuing all forms of diverse thought and background in order to have a more thoroughly inclusive employee experience.


3. DEI is “Colorblind”: Some argue for a “colorblind” approach, believing that ignoring differences will eliminate bias. However, an effective DEI strategy promotes and celebrates the differences that make each individual unique. Striping away these differences through colorblindness can unintentionally perpetuate bias.


4. DEI is a One-Time Fix: DEI strategies and initiatives, by their nature, must be ongoing and adaptable. A large part of what constitutes fairness and equality is cultural, and culture isn’t a fixed concept. DEI initiatives must adapt and change based on the changing needs of the people in your organization. The effects of DEI on compensation are cumulative.


5. DEI is An HR Thing: DEI isn’t solely the responsibility of HR departments. For it to work, it has to be woven into the culture of the organization at every level, from leadership to individual employees. Organizations must embrace differences in order to remain relevant and have foresight to new and expansive futures.


DEI: From Compliance to Culture


There are a lot of pay equity and pay transparency laws popping up in the United States and around the globe, and organizations all over are scrambling to structure for compliance.


However, the organizations that will truly succeed and benefit from these efforts to make workplaces diverse and inclusive are the ones who build these values into their very culture. Compliance alone isn’t enough. You have to actually want a healthy, diverse workplace for all your employees.


To create that, you’ll need to look at the code your organization operates by—all documentation regarding pay, from your compensation philosophy to your sales incentive plans—more on this in my next post.


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By 183:906269490 December 16, 2024
In my first Best Practices post, I talked about the importance of knowing what you can pay for your sales roles before worrying about what the market is saying. In my second post, I covered ways to utilize culture in a sales organization . The following Best Practice in sales compensation involves job content. Job content plays several roles in your compensation plan: 1. It gives your salesperson a guide to what success looks like in their role. 2. It gives you a guide to evaluating the performance of your salesperson. 3. It rationalizes differing levels of variable pay outcomes for varying performance levels. 4. It provides your organization with the structure needed to comply with any reporting, pay transparency, or other regulations. Hopefully, that’s enough to convince you of the importance of taking the time to define your new roles and revisit the definition of your existing roles. Now, here’s how job content actually does those things. Defining the job The first role of job content is to define the who, what, where, when, and how of the function. It can be tempting to borrow a job description from LinkedIn, Glassdoor, etc., with the assumption that the content will be similar enough to fit your needs. However, the way a specific role performs is unique to the organization it’s acting in, which is why it’s important to take the time to define the job from scratch. Here are the questions you should be answering in your job content: What does the person need to do on a daily basis? How does this individual pursue sales, and in what segment or with what type of customer? Where should they focus their time and attention when building a pipeline of deals? Who should they be interfacing with, both internally and externally? When do they engage with customers and/or prospects? What portion of the sales process do they own or support? How do they interface with and influence decision-makers? Now, even though I said to write your job description from scratch, that doesn’t mean this is the time or place to get too creative. Job seekers are going to be searching by job title or category, so it’s essential to stick to the common vernacular regarding industry jargon and expected job titles. Job Description: A Byproduct of Job Content Another positive outcome of creating job content for your roles is that you will have generated much of the information needed for a job description if or when you’re ready to hire. Information such as: Job duties and responsibilities that clarify the type of work and engagement with customers. Qualifications/Requirements that are both minimum and desired. Those include education, knowledge, skills, capabilities, and competencies. Performance measures of the role include items like achieving sales targets, new logo acquisition, development of pipeline, accuracy in forecasting, etc. With all of this information on file, it will not only be easier for you to prepare to hire for the roles you want, but it will also be easier to evaluate existing employees in those roles. Beyond all of that, you’ll be well prepared for competitive market research and establishing your variable pay program. I’ll be posting more best practices on the blog, but if you’re anxious to dive deeper into the subject of sales compensation, you can grab a copy of my book Starting Simple: Sales Compensation and consider working through the companion Workbook to build a sales compensation plan from scratch.
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