My initial love was your data, but now I realize it’s a whole compensation system.
- Karen Miller, Director of HR
Employees across all departments had grown increasingly unhappy about pay issues, as evidenced by their responses on a recent annual engagement survey.
Both employee frustration and feedback from Mission’s very active board provided a strong impetus for change. Early in his tenure, Malmos was pulled aside by the chairman of the board. "He told me that formalizing Mission’s compensation had to be a priority."
The HR team vetted several vendors prior to implementing PayScale. "We needed a vendor who could really help us and provide support, because this was truly a design from scratch," said Malmos. "We selected PayScale because of the high level of education and touch the company provides, from start to finish."
As Mission grew, it became challenging to get the big picture of positions across different functional areas. With PayScale, the company can now instantly see outliers, such as who is underpaid and who is overpaid for similar positions. "The biggest issue we faced in the last couple of years is we’re not a small group that sits around one table. We started to have employees that you would consider on the same ladder in a given functional area but at different pay scale and bonus level that had become problematic to manage," said Tim Albers, chief financial officer at Mission. "With PayScale, we’re getting rid of both the inequity that was there and the finger pointing that went along with it."
PayScale enables Mission to more effectively recruit and retain talented, skilled employees. "We want to make sure we’re able to attract, grow, and retain the right people. How we compensate them is important. Finding out how to incentivize our employees maximizes our productivity, plain and simple," said Albers. "With PayScale, we have better balance and validation that we’re in line with the market and we’re compensating employees fairly."
Mission’s previous lack of a formalized compensation plan made it challenging, if not impossible, to effectively ensure gender pay equity. "With PayScale, we’re now bringing everyone up to the minimum," said Abarques. "The system has allowed us to address gender pay gaps and make it equitable for all employees."
Most of Mission’s HR employees came from within the company, not from external HR-dedicated positions. "This process was new for team members," said Malmos. "But through PayScale’s assistance, our team has blossomed and gained a lot of subject matter expertise. Yes, it’s helped the company, but it’s also helped us develop our internal HR talent."