Rolling out new compensation processes and platforms is essential for scaling organizations, but it’s a major undertaking. Updates to pay programs and compensation management systems impact everyone in the business and set the stage for future growth. It’s crucial to get it right.
The team at Databricks knows this firsthand. Over the past five years, they’ve grown from 1,000 to 8,000 employees, and with this growth came the need to update their compensation planning processes and technology stack with Pave.
After making updates, the results were impressive:
- 100% of R&D team members who gave feedback agreed that the updated process made compensation planning simple and easy to navigate
- Their Total Rewards pilot resulted in an overall satisfaction rating of 4.6 out of 5
Read on for four crucial tips from the Databricks team for successfully implementing new compensation processes and tools.
1. Secure Executive Buy-In Early
“Leadership buy-in is crucial, but it’s often the hardest thing to figure out,” said Yuki Horiguchi, VP of Total Rewards.
Whether you’re updating your compensation planning workflows or changing how you communicate total rewards information to employees, meet with leadership early in the process.
Having these conversations helps you:
- Align on the problems you’re trying to solve
- Discuss the planned changes
- Share the value of the proposed solution
- Understand what the executive team hopes to see
But remember to manage expectations—don’t overpromise on what the new solution will deliver.
“It’s critical to be honest and upfront about what’s on the roadmap.”
—Josh Metzler, Compensation Programs Lead
Beyond initial conversations, give your leadership team time to explore the new compensation management system and share their feedback. Incorporating their input builds trust and ensures the final result meets expectations.
2. Prioritize User Testing
A successful compensation management system or program rollout hinges on stakeholder input from across the organization.
Conduct user testing with cross-functional partners outside of the compensation team to get a fresh perspective on what’s working well and where there’s opportunity for improvement. Running demos with a variety of stakeholders helps you identify gaps early—and build trust and credibility across the organization.
“A lot of feedback comes from stakeholders not in the compensation realm. They can bring the eyes of the business and employees, and tell us what works and what doesn't."
—Josh Metzler, Compensation Programs Lead
Don’t forget to put yourself in the user’s shoes. Consider how the experience will look and feel to employees. It can be challenging to step outside your compensation bubble, but it’s necessary to build a truly scalable, employee-centric pay program.
3. Start With a Pilot Group
Roll out changes in phases. Doing so allows you to gather learnings and make adjustments before bringing a new compensation program to the entire organization.
The Databricks team took this approach when updating their compensation planning process. They started with the engineering team—the most complex group in the organization—knowing that if it could work there, it could work for the entire business.
Through this pilot, the team learned how to best customize approval chains, adjust user visibility, and make changes mid-cycle. These insights led the way for a successful rollout to the rest of the company.
Taking a phased approach also helped secure buy-in for future initiatives and positioned the compensation team as a trusted partner to the organization.
“[The rollout] was a huge win that was recognized across the company. It was really a feather in our cap, and helped build credibility for the team.”
—Yuki Horiguchi, VP of Total Rewards
4. Have a Flexibility Mindset
Businesses are constantly evolving—raising new funding rounds, reorganizing teams, and adjusting pay to meet market demands. That’s why it’s important to stay nimble and be prepared to pivot.
Even after conducting stakeholder conversations and user testing, you’ll likely receive additional feedback on what’s working and what isn’t. Compensation leaders must strike a delicate balance between preparation and agility. Having a plan is essential, but so is being able to adapt.
Remember, the process isn’t necessarily finished once a new compensation management system or program is rolled out. Every market pricing exercise or merit cycle offers a new opportunity to improve, streamline, or simplify to accommodate new feedback or requirements.
“We're going to come back to the table and continue thinking about how we build, evolve, and make it better for the next cycle. We’re always looking to the future.”
— Josh Metzler, Compensation Programs Lead
Build More Scalable Compensation Programs
Updating your compensation planning processes is no easy feat, but it’s essential to meet changing business needs and keep pace with the competition.
By collaborating with stakeholders across the organization, getting executive buy-in early, and taking a thoughtful, agile approach to rollout, you'll set your organization up for success.
Want to see how the Databricks team overhauled their compensation planning and total rewards processes with Pave?
Pave is a world-class team committed to unlocking a labor market built on trust. Our mission is to build confidence in every compensation decision.
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