FlightStar has experienced rapid growth over the past few years, highlighting weaknesses in the company’s standardized annual pay increases...
At first, FlightStar tried using a local consultant to develop a new compensation strategy—yet experienced less than ideal results. According to Johnson, "It was a train wreck. The consultant didn’t have the level of sophistication we needed. They couldn’t get their hands on a wide- enough base of comparative data." Johnson researched other options, talking with trusted sources from his 25 years in HR. "PayScale kept coming up. I went online to do a Free Salary Report and the rest is history. They helped us develop a compensation strategy that was truly soup to nuts, both hourly and salaried. PayScale did all the heavy lifting and made me look good."
Access to crowd sourced, real-time compensation data also increased transparency. Employees understand that salary increases are no longer automatic. “With PayScale we have a more powerful compensation system, one that is more engaging for employees. No one is simply entitled to a raise anymore; they know their performance plays a key role in how they are compensated.”
PayScale’s real-time, on-demand salary database enables HR to deliver hard data about comparative rates, salary forecasting, and market differentials. “There’s tremendous value in being able to provide truly credible compensation information to our executive team,” said Johnson. “If we’re coming to the table with data, not emotion, we’ve automatically increased our value as strategic partners.”
While compensation is a key component in a smart employee engagement and retention strategy, it must first be in line with the organization’s financial goals. “Our previous dollar-a-year increase was going to put us in trouble very soon,” said Johnson. "With PayScale’s database and tools, I know we’re making decisions about compensation that are financially sustainable."