How might we simplify and streamline the compensation negotiation process for employees to enhance their work satisfaction and ensure they receive the compensation they deserve.
Employees are seeking higher compensation and greater work-life balance. They want an employer who is transparent and sees their value and contribution and path to growth. Employers are facing rising cost in budgets for salary while trying to maintain top talent and stay competitive.
User Pain Points:
- Lack of Clarity on Market Value and Potential Underpayment: Employees feel their current compensation doesn't reflect their value, leading to uncertainty about fair pay.
- Difficulty in Framing Accomplishments and Strategic Negotiations: Employees struggle to articulate achievements, lacking a strategic approach to negotiations.
- Uncertainty about Qualifications, Responsibilities, and Expected Salary for Higher Roles: Employees face ambiguity regarding qualifications, responsibilities, and expected salaries for desired higher-paying roles.
- Lack of Confidence and Guidance in Negotiating Salary: Employees express a lack of confidence and guidance when negotiating salary, contributing to missed opportunities.
Supporting Data and Feedback:
- Survey results indicate 100% of employees believe their current compensation plan doesn't reflect their value.
- A Salary.com survey highlights that 44% of respondents never bring up the subject of a raise during performance reviews.
- 80% of surveyed employees admit they lack a clear understanding of how to negotiate compensation.
- Employee interviews emphasize the need for confidence and guidance in negotiation processes.
Expanding the Problem Space:
- Budget Constraints and Salary Expectations for Employers: Employers risk losing talent if compensation isn't handled correctly, with budgets projected to increase by 4.6% in 2023.
- Lack of Transparent Compensation Structures: Employers face challenges in having transparent conversations about pay decisions, crucial due to emerging pay transparency laws.
- Negotiation Skill Variability Among Managers: Opportunities for growth are linked to job satisfaction, emphasizing the importance of negotiation skills among managers.
Additional Market Considerations:
- Work-life balance is a crucial factor for 51% of employees worldwide, indicating broader considerations beyond monetary compensation.
- Legislation requiring salary disclosure in job postings is increasing, putting pressure on companies to have equal practices across states.
Feedback from Respondents:
- One respondent highlights the avoidance of compensation discussions by managers, emphasizing the need for value recognition and competitiveness.
Employees seek higher compensation, transparent workplaces recognizing contributions and providing growth paths. Employers navigate rising budget costs, talent retention challenges, and a competitive landscape. The solution must align employee values with fair compensation practices.
Landing on the Solution
Through comprehensive surveys, interviews, and market analysis, it became evident that employees face challenges in articulating their value and negotiating compensation, while employers grapple with talent retention, budget constraints, and transparency issues, leading to the development of Onpointly, a solution designed to empower both parties through gamification, transparent budget displays, and additional perks, fostering fair and satisfying compensation negotiations.
- Accomplishments Tracker:
- Allows employees and employers to monitor task completion, meeting deadlines, and taking on additional responsibilities.
- Generates success reports with detailed insights, such as the percentage of tasks met before deadlines.
- Gamification and Rewards:
- Associates a gamification element with each accomplishment to incentivize employees.
- Employees collect points redeemable for rewards like additional time off, in-office lunches, gift cards, job shadowing sessions, and bonuses.
- Transparent Budget and Wage Comparison:
- Enables managers to transparently display budget constraints for salary, showcasing financial limitations.
- Compares employee wages within the company, indicates the next role's wage, and outlines the necessary skills for career advancement.
- Manager Perks:
- Empowers managers to offer additional perks to recognize and motivate employees beyond financial compensation.
Product Manager Learnings:
Through this process I had to iterate and rework the problem space to give a more holistic solution.