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Part 2: The Way You Compensate Impacts Your DEI Strategy

183:906269490 • November 7, 2023

Weaving Diversity and Inclusion into Your Organizational Documentation

In my last post, we talked about common misconceptions surrounding DEI strategies and how true inclusivity has to be woven into the very DNA of your organization. Now, we're going to talk about the documentation you use to encode DEI into your company culture—primarily regarding your organization's beliefs and behaviors around pay.


Your DEI Roadmap

 

Your DEI strategy should be more than a good intention. Documentation is important because it holds us accountable and it gives us a way to reference our progress. A comprehensive DEI roadmap typically includes the following key components:


1. Assessment and Baseline: Begin with an assessment of your organization's current DEI status. Collect data on workforce demographics, representation, and employee experiences. This establishes a baseline to measure progress. The use of surveys to gauge employee sentiment as well as collective values is a meaningful first step.


2. Goals and Objectives: Set specific, measurable, achievable, realistic, and time-bound (SMART) goals for DEI. These goals may include targets for increasing representation, reducing bias, and fostering inclusivity. Be sure to have short-term and long-term objectives collectively.


3. Strategy and Initiatives: Outline the strategies and initiatives that will help achieve your DEI goals. This may include recruitment practices, leadership development programs, employee resource groups, and training modules. Be specific about the impact on the employee experience.


4. Accountability and Responsibility: Establish roles and responsibilities within the organization for driving DEI initiatives. Identify DEI champions, committees, or teams responsible for implementation and oversight. Define the components of DEI that are being focused on in order to establish what success looks like for the individuals involved.


5. Training and Education: Design and implement DEI training programs for employees at all levels, focusing on building awareness, cultural competence, and allyship. The intention shouldn't be marketing. There should be skills that are learned in the process. Skills such as heightened communication skills, emotional intelligence, and the awareness of and reduction of personal biases.


6. Communication and Transparency: Develop a communication plan to keep employees informed about DEI efforts and progress. Transparency and clarity are essential for maintaining trust.


7. Data and Metrics: Establish a system for ongoing data collection and analysis to track progress toward DEI goals. Regularly report on metrics related to hiring, representation, pay equity, and employee sentiment.


8. Resource Allocation: Allocate budget, time, and resources to support DEI initiatives. This may include investments in technology, training, consulting, and external partnerships.


9. Policies and Practices: Review and update company policies and practices to ensure they align with DEI principles. This can include anti-discrimination policies, flexible work arrangements, and accommodation processes.


10. Legal Compliance: Ensure compliance with relevant diversity and inclusion laws and regulations, staying updated on changing legal requirements.


A well-structured DEI roadmap integrates these elements into a coherent strategy for creating a more diverse, equitable, and inclusive workplace. It should be dynamic, adapting to evolving organizational needs and challenges.

 

DEI in Your Compensation Philosophy


If your organization hasn't created a documented compensation philosophy, there's no better time than the present. You can find examples and guidelines to writing a compensation philosophy in my book, Starting Simple: Finding Fairness, but here's a quick rundown.


Your comp philosophy should reflect your organization's vision and values. If you're in the midst of a major transition or are scrambling to get compliant with pay equity laws, now may be a good time to evaluate your mission, purpose, and values as well to make sure they reflect the organization that you are and that you want to be.


Additionally, your comp philosophy should talk about how you intend to pay, whether you're striving to pay at market value, or how your total rewards program works. More importantly, the philosophy should weave in the intentions of how the people are compensated to support the organizational purpose over time. Lastly, it should contain a fairness and equity statement to describe your organization's intentions and DEI strategy.


DEI in Your Job Documentation


Job documentation is probably the most obvious place to think about incorporating the DEI strategy. Most HR teams are conscious of language choices when writing job descriptions or other documents. There are numerous resources for identifying biased language you can use to make sure your language is inclusive.


But being aware of phrasing isn't all there is to it. Job documentation provides the foundation for fairness in the workplace by creating codified standards in compensable factors, job duties, and salary ranges. Documenting these things gives the organization a framework and structure to stay within to prevent the kind of subjective decision-making that can lead to inequity.


For every role in your organization, there should be a document outlining the job content, including:


  • Compensable factors like education level and job experience.
  • A list of knowledge, skills, and abilities required to succeed in the position.
  • The day-to-day tasks of the role.
  • How the individual in the role should approach their jobs.
  • Where they live on the org chart and who they will be interacting with both internally and externally.


By having your job documentation current and consistent across the organization, you're not only giving the organization a framework for hiring and compensation, but you're also setting the organization up for equity and inclusion, both to match the organization's values and to prepare for ongoing changes in pay equity laws in your area.


The final part of this blog series will address the administration and governance aspects of DEI and compensation. Stay tuned!



Get a free copy of my Fairness Checklist:

https://salescompguy.activehosted.com/f/15


By 183:906269490 January 14, 2025
Best Practices in Sales Compensation Part 4
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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