David Avdul
Vice President, Human Resources
DePaul University
Episode 362
Rethinking Rewards: Why Transparent Compensation Attracts & Keeps Talent
Current chapter: Built by People podcast features interviews with some of the world's top HR leaders
Built By PeopleJanuary 2, 2025 · 13:02
Thesis
“The future of competitive reward structures necessitates a thoughtful, adaptable, and transparent approach to compensation and benefits, balancing cost management with personalization to meet diverse employee needs and retain key talent.”
Show notes
In this episode of the Built by People podcast, host Dave D'Angelo interviews David Avdul on his extensive HR career and expertise in pay equity and compensation strategies. David discusses his journey through different industries, emphasizing the importance of having a solid compensation structure to ensure pay equity across roles, demographics, and locations. He shares insights on the evolution of pay transparency, the significance of benefits personalization, and the crucial role of equity in reward structures for employee retention and engagement. David also offers practical advice for HR leaders on adapting to industry changes, leveraging consultants, and maintaining transparent and fair workplace practices. 00:44 Guest Introduction: David Avdul 00:50 David Avdul's Career Journey 01:34 Ensuring Pay Equity and Transparency 03:56 Measuring Pay Equity Effectiveness 04:53 Future Trends in Reward Structures 06:59 Defining Competitive and Fair Reward Packages 09:36 The Role of Equity in Employee Engagement 11:26 Parting Advice from David Avdul 12:55 Conclusion and Farewell
What you'll take away
- 1Implement a thoughtful compensation structure with clear philosophy, guidelines, salary ranges, and technology to effectively manage pay equity.
- 2Develop a strategic and continuously evaluated approach to pay transparency, considering varying levels of disclosure and adapting to legislative changes.
- 3Measure the effectiveness of pay equity initiatives using statistical analysis (e.g., regression modeling) to inform remediation efforts aligned with organizational goals.
- 4Embrace personalization and flexibility in ancillary benefits to cater to diverse employee demographics, while ensuring core offerings like medical and retirement plans remain competitive.
- 5Utilize equity-based reward structures (e.g., LTI, stock options) with appropriate vesting schedules to build wealth for employees and enhance the retention of key talent.
What most organizations get wrong
In David's words
“You have to have a thoughtful approach to both of these topics. So when we talk about pay equity and pay transparency, both of these are relatively new in the compensation field, but maintaining pay equity, I think, really is incumbent on having a good compensation structure in place.”
This quote highlights the foundational importance of a robust compensation structure as a prerequisite for effectively addressing pay equity and transparency.
“Benefits are very expensive for organizations, but organizations are, have different age groups. There's older folks, younger folks who are gonna have different needs. For benefits and different rewards based on their age group and the stage they're in in their lives. So, you know, I will say based on surveys and based on the research and all the work I've done, as it comes to benefits, as it relates to benefits, medical plans, retirement plans are always going to be really top of mind. But you probably can get more personalized or flexible in some of the other extra benefits or ancillary benefit programs.”
This emphasizes the strategic shift towards personalized ancillary benefits to meet the diverse needs of a multi-generational workforce, while affirming the enduring importance of core benefits.
“I think the transparency— we talked a little bit about that before. I think that's here to stay, right? There's more and more transparency around Think about AI, you think about salary information on salary.com and Glassdoor, that information's out there. So, and even cost transparency with benefits. So we need to embrace some of that 'cause I think that's gonna be here to stay and people are gonna be more aware of what a competitive and fair reward package is.”
This underscores the irreversible trend of increasing transparency in compensation and benefits, driven by technology and legislative mandates, necessitating proactive organizational adaptation.
“Well, I would say, you know, be flexible. You know, there's no one-size-fits-all for reward structures. Try to listen. To your population. A lot of people talk a lot, but they don't listen. So try and figure out what your organization wants.”
This practical advice highlights the critical importance of active listening and flexibility in HR to tailor reward strategies to specific employee needs, fostering trust and engagement.
The problems this episode addresses
- •Employees are primarily concerned with covering monthly expenses, indicating a need for benefits that directly address financial well-being.
- •Ensuring consistent pay equity across diverse roles, locations (including multinational), and demographics presents complex compensation challenges.
- •Navigating the evolving landscape of pay transparency, including state mandates and determining the appropriate level of disclosure for an organization.
- •Statistically measuring the effectiveness of pay equity initiatives and implementing data-driven remediation strategies.
- •Balancing the desire for personalized employee benefits with the necessity for organizational cost management.
- •Difficulty in accurately benchmarking long-term incentive (LTI) and equity programs due to inconsistent or 'wonky' survey data.
- •Building and maintaining credibility and trust within the workforce, particularly regarding total rewards communications.
In this episode
Built by People podcast features interviews with some of the world's top HR leaders
Built by People: David Abdul
Pay equity and pay transparency are relatively new topics in the compensation field
AskWSJD: Pay Equity and Pay Transparency
David, how do you measure the effectiveness of your pay equity initiatives
How to Measure the Pay Equity Initiative's Effectiveness
How do you see reward structures evolving over over the next 5 years, especially with personalization
How do you see reward structures evolving over the next 5 years?
What are some of the key components you believe will define competitive and fair reward packages
What are some of the key components of competitive and fair reward packages
What role does equity play in employee engagement and retention
WSJDLive: Equity in Reward Structures
David, any parting advice you'd like to share with our audience
How to Build a More Human Resource-centric Reward Structure
Topics covered
Organizations and entities mentioned
Full transcript
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