Compensation Leaders Are Lost in the Data.

We recently had a conversation with two seasoned experts, Felipe Uliani and Danielle Luz.

They have over 25 combined years of experience leading compensation strategies across major enterprises. And they keep seeing the same frustrating pattern over and over.

As seasoned advisors and passionate thought leaders, Felipe and Danielle are a living embodiment of the fundamental difference between running compensation as an operational checklist versus positioning it as a strategic catalyst for business impact.

We've distilled their perspective into this action-oriented guide, so you can start crafting compensation strategies that are lockstep with your organization's goals and priorities.

01. Understand Leadership Priorities: The Cornerstone  

Before crafting compensation plans, we must deeply understand the priorities and goals of our leadership team.

As Felipe notes:

If I could go back, I would focus more intentionally on aligning the compensation strategies and the business objectives."

To grasp these priorities, Danielle recommends focusing on three key pillars:

1. Company strategy and culture  
2. HR and rewards strategy
3. Market competitiveness and business impact

Once we understand these pillars, we can actively listen to leadership's expectations and aspirations.

🎯Action Steps:

• Analyze the company's strategic roadmap and cultural values
• Study the HR/rewards function's objectives and key metrics  
• Assess market benchmarks and the competition landscape
• Schedule regular briefing sessions with leaders to discuss their evolving focus areas

02. Measure Tangible Outcomes

Ultimately, the success of our plans hinges on tangible, measurable outcomes.

Felipe recommends:

Sit down with the leaders, understand what success looks like and what you're going to measure. If you don't measure, it's hard to say if it's working or not  

Some key metrics to track:

✅ Employee engagement and satisfaction levels
✅ Turnover rates and quality of exits/new hires  
✅ Internal pay equity and alignment with compensation philosophy
✅ Ability to attract and retain top talent
✅ Return on investment (ROI) of compensation spend
✅ Progress against diversity & inclusion goals

Establish clear tracking mechanisms and review cycles from the start. Evolve and recalibrate measurements as needed.

03. Communicate Effectively: Speak Their Language

Communicating our insights compellingly is just as vital as understanding leadership's goals. We must present data-driven narratives that resonate.

As Felipe states:

Help the business by bringing more credibility through data. The way we show data, the way we tell the story behind the numbers is key.

To accomplish this, consider the following:

• Partner closely with leaders to understand their terminology and thought processes
• Draw insightful conclusions from quantitative and qualitative data
• Use visualization tools and techniques that make complex data easily digestible
• Craft compelling stories that put the data into a business context leadership cares about

Handling Resistance

At times, we may face resistance when proposing compensation ideas.

Danielle advises:

Listen first, understand the context, understand what they really need, and then combine it with storytelling to meet/exceed their expectations. 

Empathize with concerns, address root causes transparently, and leverage solid data to justify your proposals. Anticipate potential objections and have data-backed responses ready.

04. Share Relevant, Focused Insights

With limited leadership mindshare, we must carefully select which insights to prioritize.

Felipe suggests:

Don't assume. You need to understand what the leader needs, so you can distil correct information and align with them on their level.

Some high-impact data points that leaders appreciate (aside from those in point 2) include:

✅ Compensation ratios and pay levels  
✅ Industry benchmarks on wages and attrition
✅ Recruiting funnel metrics and cost-per-hire data
✅ Pay equity analysis across demographics

Tailor the specific insights based on each leader's current priorities and pain points.

Less is more - don't overload them with excessive data.

05. Balance Short and Long-Term Priorities  

While addressing immediate needs, we must ensure our strategies align with the organization's long-term vision.

As Danielle wisely states:

We are dealing with activities that may impact and be implemented in the company over years, and it's not only a decision that impacts two-day scenarios. We need to remember that we are delivering a strategy.

To balance priorities:

• Define top goals for the current quarter/year that ladder up to the long-term roadmap
• Implement mechanisms to continually validate whether initiatives remain relevant  
• Maintain open dialogue with leaders to course-correct when required
• Ensure compensation philosophy supports enduring cultural values
• Identify transitional states if pivoting towards a new long-term model

06. Embrace Agility and Evolution

Our compensation strategy needs to progress in tandem with the world, its progress and development.

Danielle highlights:  

Nobody can be 100% sure that our strategy is the best because we operate in a very global context. Every day, a different company has a new best practice. The new gold standard.

To foster agility:

• Invest in flexible, data-driven compensation tools
• Establish regular "pulse-check" periods to re-evaluate approaches
• Actively learn from market movements and evolving best practices
• Maintain open channels with leaders to realign as needed
• Incorporate listening channels for employee feedback and sentiments

07. Foster Cross-Functional Alignment

While aligning with leadership's vision is paramount, we must also ensure tight coordination across different functions and departments. Pay close attention to the priorities and metrics that matter to teams like Finance, Talent Acquisition, D&I, and others.

As Danielle points out:

We need to ask questions that go beyond our tiny realm. What's happening in recruitment? What are the challenges in development? Are we effectively attracting and retaining talent with our current strategies?

Proactively collaborate with peer functions to understand their objectives and constraints. For instance, partner with Finance to model compensation spend aligned with budgets. Work closely with the D&I team to bake in equity and representation goals.

By fostering cross-functional partnerships and alignment, we can develop cohesive total rewards strategies that serve the needs of the business holistically.

08. Leverage Employee Voice and Feedback

Our compensation strategies don't operate in a vacuum - they ultimately impact the employee experience.

As Felipe advises:

Leave the safety of your spreadsheet. Get out of the desk sometimes and hit the field, hit the store. Really understand the business and how your decisions impact employees.

Build mechanisms to gather continuous employee feedback through surveys, focus groups, or open door policies. Identify sentiment patterns and pay close attention to employee concerns or desires around compensation.

Not only does this input help validate whether your strategies are resonating, but it can also surface innovative ideas to explore. Employees closest to the frontlines often have a unique vantage point into emerging needs.

Open the lines of dialogue with your workforce. An empathetic, employee-centric approach strengthens the impact and longevity of your compensation initiatives.

Something to think about

The path to truly impactful compensation strategies isn't just crunching numbers and checking boxes.  

Become a strategic partner to business leaders: Invest in building trusted relationships and deeply understanding their priorities. Craft data-driven narratives that speak their language and demonstrate the value you bring to the table.

Measure what matters, not just what's easy: Go beyond simplistic metrics like compensation ratio. Let employee voice and bottom-line impacts guide how you define and track success. Rigorously quantify the ROI of your initiatives.

Take the long-view on talent and Performance: Don't get myopically fixated on short-term cost controls. Design compensation philosophies and programs that foster sustainable engagement, retain your standout performers, and attract the workforce of the future.  

Felipe and Danielle have our undying support.

The compensation leaders who will truly move the needle are those who get out of the weeds, align with the bigger picture, and position themselves as indispensable business advisors. The path is clear for pioneers ready to elevate the function.