Unbossers Podcast
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Unbossers Podcast
Navigating new Pay Transparency Regulations in HR: Part 2 - Supporting Software with Teal Partners & SD Works
Discover how the latest ESG regulations are transforming HR practices and learn the secrets to staying compliant in our summer webinar series. We kick off with an eye-opening discussion featuring Isabel from Teal Partners and Lara Mona from SDWorks. They share their insights on the rigorous expectations from regulators concerning pay transparency, gender gaps, and bonus justifications. Get an inside look at Yugo, the groundbreaking software introduced by Isabel, designed to simplify HR processes in a landscape dominated by ESG mandates.
Our conversation then shifts to the technological tools that can help your company navigate these new regulations seamlessly. Lara Mona outlines the compliance timelines for upcoming European ESG regulations and emphasizes the importance of a robust reward strategy. You'll learn actionable steps for developing a strategic reward policy that aligns with the salary transparency directive, ensuring your company stays ahead of the curve. The focus is on making complex processes like annual pay gap reporting and salary information dissemination both manageable and efficient.
Experience the practical benefits of Yugo in our detailed demo session, where we showcase how this innovative tool can streamline bonus and merit processes. We highlight Yugo's capabilities in maintaining job titling consistency, reducing manual errors, and decentralizing decision-making to enhance efficiency. The episode concludes with a compelling overview of how Yugo enhances ESG reporting by tracking budget allocations, monitoring pay gaps, and facilitating transparent employee communication. Whether you're an HR professional or a corporate leader, this episode offers invaluable insights into leveraging technology to meet ESG requirements and foster a fair workplace.
So you probably will have a lot of ESG reporting to make in the future, so let's get started and see what the requirements are. Isabel, laura, are you ready?
Speaker 2:Yeah, I'm ready.
Speaker 1:Okay, fantastic. I welcome everybody to this second session of our summer webinars on the impact of the pay transparency regulations and other ESG regulations, mainly in the S of ESG, that is impacting our people and our HR in our companies. Just letting someone new in from Raf, that's from Colrads. The first part we did basically the full theoretic framework to understand what is coming and for me personally, jumping into the material fresh and new, I learned a lot and I was quite impressed by the expectations these regulators are setting, especially in terms of reporting not only your salary scales but also your gender gaps, and if you're giving someone a bonus, you have to explain why they receive a bonus and someone else doesn't. And so it went quite far, I must say, and I truly believe if all businesses adopt these regulations, I think it will benefit our organizations and the corporate world in general. Nevertheless, I also learned that there's quite some work to do before a business is ready for these regulations. So that was part one. It is available on Boster's podcast to listen re-listen, I should say and on our YouTube channel to watch so that you can also see the slides. For this second part, we decided not just to do the same session again, but to focus a little bit more on the technology side and more specifically on Yugo and how this software can help companies make the life of HR basically easier and less complex in an ESG-regulated world. Again, we've invited our dear friends from Guild Partners and Yubo and SDWorks, and the agenda is as follows we will do a short presentation of who we are, short introduction, as follows we will do a short presentation of who we are, short introduction, then a recap of the first session, a very quick recap of the first session so that we get the framework, and then we will jump into Yubo using an example, a business example, and basically Isabel explaining us how it can help us comply to these new regulations. And then, obviously, we also have some questions for you that we're curious about, to learn how you're looking at it. There's constantly people getting into this session, so I need to allow them. Okay, isabel, I think that's it for general introduction. So who we are.
Speaker 1:Let me go to the next slide. So, basically, these summer webinar sessions are organized and facilitated by the OnBossers network. We are a network organization. We make free resources like videos and podcasts and articles and webinars like this, in which we provide a platform to the companies in our network to basically share their knowledge to the benefit of other companies in our network. We also do paid activities where we help people in all functions of the organization experience very empowering organizations and inspiring organizations in a way that's very pragmatic and approachable and that they can really do something with it. So, and yeah, last year we won the Zero Distance Award, which was very nice because it's kind of an acknowledgement of the fact that the way we set up the network and how we create knowledge sharing and connection across businesses and within organizations is quite innovative. That's it for unbossers. Let's go to SDWorks. Lara, who is SD.
Speaker 3:Yes, thank you, Nick. So I am Lara Mona. I'm a reward consultant of SDWorks. I think SDWorks is a quite known company. It's a leading provider of HR and payroll solutions and active in all HR domains. This with more than 75 years of experience now and still expanding over Europe.
Speaker 1:Yeah you're taking over Europe Slowly yes, indeed that's cool.
Speaker 3:So you can see the five big HR domains, but today we will mainly focus on the payroll and reward. I think for SDA the big strength is the data we have. We get our data straight from the payroll and this data we can use for consulting for software solutions. So what we can actually do is to provide benchmarks or provide other insights for clients.
Speaker 1:Okay, thank you, lara, and SDWorks, for being here and for sharing your knowledge with our network. Now the main focus of today's session will be on Yubo, of which I've heard Isabel not so long ago, last week, from someone who used to work in HR that this product should be the software of the century, not just of the year, but of the decades. So tell us, enlighten us, what is Yugo?
Speaker 2:Okay, I agree with that opinion.
Speaker 2:I'm very curious who told you that as well?
Speaker 2:So Yugo, indeed, it's actually an initiative of Teal Partners.
Speaker 2:So Teal Partners is a software company and, as it works together, because we noticed indeed there was a huge gap in HR software right now, more specifically, on the bonus and minutes processes, we actually see that it's being done in Excel a lot, and Tail Partners as a software company, of course we thought, okay, let's digitize that process, because it's a huge hassle right now and actually what you can do in Yugo is run your bonus and merit processes in an online tool, which makes it, of course, very efficient, but also without any errors manual errors, which you can, of course, imagine there are lots in Excel.
Speaker 2:What the tool actually does, we will dive into the tool later, but we will actually calculate wage and bonus proposals based on your wage policy, where, of course, sdn Works can help you with. Of course, in Nubo, the managers will be trained and supported throughout the process. Hr has insights during the process, but also afterwards they can do a reporting, which, of course, is then very important for the ESG regulation that is coming up, okay, and, as you mentioned, we will dive into a demo.
Speaker 1:Well, that's basically the main part, to show how technology can help us with these upcoming regulations. But first, lara, could you set the frame a little bit in terms of what is a reward strategy and how does it link with the European legislations?
Speaker 3:Yes, the ESG. Firstly it stands for Environmental, social and Governance. It's a European legislation where companies will have to do a lot of reporting on several domains. We as SDWorks and also Yubo, will focus mainly on the S, so on the social part, because this is the part that really is involved with the employees and their salaries. So the other domains also have to be reported on, but it's more with other partners you work with in the company. But the social part we can really help with.
Speaker 1:Okay, give us a sense of the timeline.
Speaker 3:Yes, here's a timeline. So for the biggest companies, it's already going on at the moment. So large public interest entities like banks or insurance companies with more than 500 employees will need to comply already In 2025, they have to report on 2024. In 2025, they have to report on 2024. For other large companies it's the year after they'll have to report on 2025, in 2026. Which are these companies? It are all large companies, listed or not, meeting two out of the three next criteria, this being more than 250 employees and or more than 40 million in net turnover and or more than 20 million in total assets. But nobody escapes the regulation. So from 2027, all smes, listed or not, will have to report on 2026. So actually every company should start thinking about it already.
Speaker 1:Yeah, so in the next three years all companies will have to be ready. The question is, for what?
Speaker 3:Yes, indeed so part of the ESG reporting is the law on salary transparency. This is created because there is still a big gap in Europe between men and women. In some countries it's up to 15%, which is quite a lot for the same function. In Belgium we're doing quite okay. It's 5%, and we see it mainly in the older generations. We even see in the youngest generation it's sometimes%, and we see it mainly in the older generations. We even see in the youngest generation it's sometimes actually the opposite, where the women do it a little bit better than men at the moment Positive discrimination. Yeah, that's a turnabout, I guess.
Speaker 3:So what has to happen? Access to information, where everyone has to actually see their pay salaries. A reporting obligation, as mentioned earlier. Companies have to report on their pay gap in the company. Access to justice if your employees feel discriminated the past years, they can ask for compensation. And also, in the legislation, the scope is prudent as opposed to the past years. So what does this mean in?
Speaker 1:practice. Can I ask a question to the previous slide? So it's written there employers must inform job seekers about the starting salary or pay range for advertised positions. Does this also mean that people that already work for the company should have access to these pay ranges?
Speaker 3:yes, for sure. Almost for every company your pay scales will have to be on the intranet so only employees can see them. But also when you have someone who is interested in a function for the biggest companies, it has to be on the intranet so open to all. For smaller companies, you will have to show it to the person who is interested in the job.
Speaker 1:Okay, so I'm going to do a quick recap for Natalie, who just joined. So the paid transparency directive is transparency in salary information. You will have to report annually on your pay gap. Workers who feel discriminated can have access to justice. And what is the broadening the scope?
Speaker 3:Well, there were some regulations already, but now it's really a lot more strict. So that's the new legislation that's coming.
Speaker 1:Yeah, yeah, okay, thank you.
Speaker 3:So in practice you can show them all if you want. So every company needs to take measures to increase the salary transparency Everyone will know their individual, of course, and average compensation of their function. So for smaller companies, if you're like five employees in one function, it's sometimes easy to deduct toward the big earners. Base scales for workers doing the same or similar work have to be open, candidates receiving information on the starting salary and their salary range. So their possible codebats and employers must declare the facts so have to do the reporting about it.
Speaker 3:So what does this mean? To do this and to explain to individuals why some earn actually less or more, you really have to. You need to have a really well-founded reward policy in the future and if you don't have one, they really should start making one in the company and have a reward strategy, because here are some threats when you don't have a well-founded reward policy. So when there's the absence of a well-founded reward policy, it will lead to social turmoil and a negative working environment. Also, the workers' perception of the rich policy will not be in line with what they see on the market Because of the biggest companies. They can just look up the pay scales of those companies.
Speaker 1:They will easily be able to compare, not just based on what they hear from other uh, from friends uh who work in other companies, but they will really be able to look up the pay scales um from the other companies. Yeah, the biggest companies?
Speaker 3:yeah, and I think that, as a smaller company, it's important to be able to tell why your pay scales are how they are. Because a small company, you can't compare it with a big company or when you're in a different sector. But you have to be prepared for such questions. So why you have a pay scale or ID. So if it's not in order or not well-founded, you will lose talent, and talent quickly finds a new job.
Speaker 1:You will have difficulties in attracting new talent and you will get a worse image on the job market and get blind spots in the employee value proposition okay, so for the participants, I will ask Lara now to give a quick recap of the process that you should follow in order to get your strategic reward policy. On our on Buster's YouTube channel or on our Spotify and Apple podcast, where we have the recording of the first session, which is basically 45 to 15 minutes a colleague of Lara, vision II, explaining in detail how is the approaches this process. But for now I'm gonna ask Lara to just give a very small recap of that so that we can move to the technology side of things. Go for it.
Speaker 2:Yeah, I'm going to explain this one For Lara. We'll tell you the different steps because we're actually going to explain the entire process, like how do you make a wage policy, but also how do you implement it in your company with the use of Huwo, with an example. Our example is called TechPlus. Techplus is actually an international organization with headquarters here in Belgium and they acquired a lot of companies in the past all over Europe and they actually just acquired a new office or department in France and their goal now is really to streamline the wage policy of France, of the department there, with the rest of the company, Because, of course, they acquire a company and all the employees there already have wages and maybe they're not really in line with the wage policy of our HQ or TechPlus company. So that is actually the goal in time to make it more fair and equal with the rest of the company.
Speaker 1:So for now, the wage policy and the bonus and merit policy is scattered because of mergers and acquisitions and the goal is to streamline and make it fair for everyone in the group.
Speaker 2:Yeah, that's the goal, and you also have the international context because of course, in other countries you may have other benefits than we offer in Belgium. For example, offering cars in Belgium is very interesting for the employer, and I think in other countries it's less interesting.
Speaker 1:Yeah, All right.
Speaker 3:So, lara, what does a reward? Policy consist of this will be a quick recap of last session, where you indeed can see it in full scope. But what does a well-founded reward policy consist of? Firstly, a clear job structure, so a function house which will form the internal equity, and next to that you will have pay scales which are based on your job structure and, lastly, you have the wage components, which are also linked to your pay scales. So how do you come to this? Come, yeah, sorry, yeah yeah, so is.
Speaker 1:So, coming back to the example, so if you're working in hr, the first thing that you would do is create a function house for all the entities in the group, or is it per entity?
Speaker 3:Yes, this is indeed something I would come to. I think the function house. You can do it for the whole company, so for all entities and even countries together, for the whole company.
Speaker 3:So for all entities and even countries together. The first step in that is actually the job titling consistency, because in some companies maybe someone is called a manager and in another entity a director and they do some on the same level function. Make it consistent and make them both a director or both a manager. The same with consultants If in one company a consultant is doing the job of a junior consultant in another entity, make it the same. So that's the first step that actually brings consistency in your job titling.
Speaker 1:Okay, thank you. And then you go for pay scales in again same question per entity or for the full group.
Speaker 3:We'll do that per entity because, as Isabelle already mentioned, it's so different for most countries. If it's in Belgium more entities, we can do it for the whole company. But even then, sometimes, and if they ask us to do it per entity because some may have blue colors mostly and the other one white colors, they will do it different.
Speaker 1:And then probably the same for the wage components. Yes, exactly. And how does the process then look like?
Speaker 3:Yes, how do we go through these components and how can ST help you with it? First, we do a reward audit. Here we look together with the client which are the financial but also the non-financial benefits they are already offering. So it's important to bring those in scope. Next to that, and especially in this case very important, is a legal audit Are you compliant with the local legislation, with the sectorial agreements, and which are the possibilities in your paritaire committee? So first, that's where we start and we make sure we're compliant with all those regulations.
Speaker 3:Afterwards, step two, we will develop a rules matrix or we do a job evaluation and classification to build your job structure. This will be the internal equity and will probably be the same for the whole company. Thirdly, we do the function mapping. We map the functions of the company with our reference functions in our reward tools so we can use those reward functions for the market analysis. Here we do a benchmark exercise where we benchmark your functions in a specific reference market that actually fits your organization, and this will be together, the external equity.
Speaker 3:Afterwards, step five, we take the internal equity and the external equity together so we use actually the job function job structure we made and we make pay scales based on the external benchmarks. So those two together will get you the pay scales external benchmarks. So those two together will get you the pay scales, and this will be unique for every country or every entity. Afterwards, we can also help you with all the communication the communication to the stakeholders firstly, Afterwards, if needed, the communication to the unions and also, most important, to the employees, because sometimes it will give quite a change. And then the last step, also important, is to fit this new reach policy in the Thailand cycle, and this is where the Yubo tool will be implemented also.
Speaker 1:So Isabel's part is focused on once you set up your reward strategy and you want to also optimize and streamline your bonus and merit cycle, that's where Yugo comes in, right. Yeah. And so, lara, what are the major in your experiences, the major pitfalls that you see with your customers that are doing this?
Speaker 3:I think first you have to see where the budgets are, because you can just keep giving benefits, of course, so sometimes we have to see where we can find a budget or optimize for the client. The biggest pitfall in the beginning, which I already mentioned, is the function consistency, the job titling consistency, because in a lot of companies they tell us, yeah, we have like for 150 employees, we have 120 functions. It shouldn't be like that. You really have to make it less and be consistent in some job titling, uh, functions to do more or less the same function. Make it, give them, yeah, a bit of the same title too yeah, okay.
Speaker 1:and what about you, isabel in the, in the bonus and merit part?
Speaker 2:Yeah if you ask what's going on?
Speaker 2:It's going on in a lot of places, so I'll explain you. So what we see now is actually that, however, there are a lot of HR tools like core HR tools, huge tools like Word ASAP. I think most of our participants know a lot of those tools like Word ASAP. I think most of our participants know a lot of those tools. However, they are using those huge core HR toolings.
Speaker 2:They're still doing the bonus and merit process in Excel, and that's something quite remarkable and it also comes with a lot of challenges, because we see that also, because it's being done in Excel, there are a lot of manual errors during the process because, of course, you start from one Excel and then you start splitting it up throughout the company. You split it up per manager or per approver and then you have to merge it later. But yeah, of course Excel formulas get messed up, also the merging, et cetera. One manager uses comma, zero use points, so I don't have to explain you. There are a lot of errors and it's a huge hassle which makes the process actually really complex and time-consuming and there's a lot of workload going into the process from an HR standpoint of human.
Speaker 1:And what is?
Speaker 2:also.
Speaker 1:The U-Boat was created. Well, not just, I mean in theory, but it came from a company that actually faced these problems right. Yeah that's right.
Speaker 2:And I'll explain to you later, because we built these tools together as they were and they also used Excel for this process. But I wanted to highlight also another challenge, I think, which is very important, because indeed, like I explained, we're building a function house, etc. An entire wage policy for those companies, and what we actually see is, after they make it, some companies find difficulties to implement that wage policy consistently throughout the company, and that is also something that you will help you with.
Speaker 1:So, a little bit of so, isabel, they do the entire process that Lara explained. They have the job titles, they have the pay structures, but then the difficulty is to really implement it throughout the company. Is that what you're saying?
Speaker 2:Yeah, yeah, it's something that we notice and very frequently during the bonus and merit process, because they make guidelines to follow the process, like, for example, you can give an merit increase of maximum 10% or 5% because it's been managed in Excel. Hr doesn't have insights in the process and also when it gets back. So they really have to check everything manually and there are like, for example, no red flags in an Excel which are saying like, okay, this is not according to the wage policy. So you really see that managers are just actually doing as they please a little bit and it's a lot of work for HR really to check okay, the decisions that the managers made or the proofers made, is it in line with our policy or not? Yeah, so that's a huge challenge and that is something actually where we can help you with.
Speaker 2:So that's the good news of CBA and, as I mentioned before, it's a tool that we actually developed together with SA Works and they're also our first pilot clients and it is indeed also a little bit similar to the case we'll present on today, because they're also a huge international company, present in 17 countries, and which is interesting is also that they have different currencies running within their company because they have deficiencies in UK MoSUS, etc. And of course, they have different currencies running within their company because they have deficiencies in UK overseas, etc. And of course, they have their own currency. So in Yubo you can also run cycles in different currencies and the tool is being used to calculate the bonus and merit amounts for almost 7,000 employees.
Speaker 2:And what was the goal really of this case was really to streamline the entire bonus and merit process, but also to push the decision more downwards in the organization, because it's such a huge organization. They start from one Excel file and then they split it up in different Excel files. If you want to give every manager the authorization to make the decisions for their teams, then you have to make, I think, almost a thousand Excel files, and then the work that comes with managing that process is too big. So we see that decisions in a lot of cases stick to the top of the process, so that is also something that Yubo can support.
Speaker 1:Okay, let's recap that, because that's also one of the reasons why I feel the philosophy behind Yubo matches the philosophy of our Ambossers Network. So the goal of the tool is to push the decision-making in terms of bonus and merits for an employee within a team as much as possible down to the manager of that team. And what you're saying, isababel, if I understand you correctly, that is, if you manage this in Excel, because the process of decentralizing this Excel to all these managers is so complex, what mostly happens is that the decision making stays centralized.
Speaker 2:Yeah, yeah, that's correct. Or we see that the decision is more centralized, which, of course, is something that you don't want, or it's a huge hassle to manage all those Excel files, especially in the larger company, the larger the hassle. It's indeed a trend that we are seeing, okay, thank you. Luckily for you guys. Yeah, yeah, okay, but it's indeed a trend that we are seeing.
Speaker 1:Okay, thank you.
Speaker 2:But, luckily for you guys, we have a solution for that as well. So, very briefly, what you are always doing will actually help you save time, safe time, because, first of all, the wage policy that you already have or that you configure with Lara's team, you can configure it in Yubo and then actually Yubo will calculate or do proposals. This should be the merit increase or the bonus amount based on the wage policy, so everything is aligned with the wage policy. The tool will also train your managers to make decisions that are aligned with both your budget but also with your wage policy, and, of course, they have the flexibility to play around with it. So we just do suggestions. Managers have the authority to, for example, say, okay, I want to give this person a little bit extra and this person a little bit less when they prefer. Yeah, sure.
Speaker 4:Sorry, my camera is working and I was late because it was also not I couldn't access, so sorry. The suggestions do they take into account any kind of performance or is it just based on the framework that you have in the wage?
Speaker 2:Yeah, it's also based on performance, so you can really also install a kind of a matrix where we take into account the KPIs and the evaluation. So perform Okay, thank you. Thank you for the evaluation, so perform Okay, thank you.
Speaker 1:Thank you for the question, yeah.
Speaker 2:You can also compare or do the internal and external benchmarking that Lara has already explained a bit, and, of course, in-depth reporting on a plan basis, on a company basis, also in line with ESG, and, of course, the communication, both to your managers and to the employees, because that's very important as well. Now I will explain very briefly how does a bonus at Red Horses look like before diving into the tool, because you will see also the different stages of the process. So, in preparation of a cycle, of course you have your wage policy, like before diving into the tool, because you will see also the different stages of the process. So, in preparation of a cycle, of course you have your wage policy, uh, you have your in the next years, uh, the answer to your question. And at least you have your evaluation process. So you have kpis or performance scores, uh, that come out of this one um. You have your budgets are defined. So which are my budgets, uh, for this um, for this cycle? And you have your budgets defined. So which are my budgets for this cycle? And you have your approval flows or your organizational structure, and that you can all configure into the U-Bow tool or the bonus embed tool, and then this is the process that we actually follow in the tool.
Speaker 2:So, first of all, if you don't have a performance tool, you can also do the KPI review in Yubo. It's very briefly so. It's not a performance management tool, but if you don't have one, you can use Yubo for it as well. I will not show you this process today, because it's not the key of Yubo. What actually is the key process is the review process. So indeed, it's a reviewing of your employees, of both the merit cycles and gift promotions as well. Then it goes to HR for approval and they can say okay, it's okay, or they can push it back downwards in the organization. If everything's okay, they can finalize and calibrate if necessary. And the communication back down in the organization everything's okay, they can finalize and calibrate if necessary, and the communication will start with any reward letters to the employees and, of course, lastly, you have the closing of the spot. It's very important for each. So, if everything is okay, I will dive into the tooling now. Don't have any questions.
Speaker 1:No, go for it. Well, unless the participants have any questions.
Speaker 2:Yeah, okay, then I will start showing you around in the viewable. So what is actually important to say is that you have two environments in viewable. So the environment we're seeing right now is the HR environment. So as an HR, it can really review the entire process during the cycle as well, like, for example, which stages are linked to which divisions. So I can see I launched the process, so my review phase has started, so we can start reviewing. I also have another environment, which is the environment of the manager. So this is the environment I can see as a manager working in Yubo, and now we're going to do the review process very briefly, together. So this is actually the overview page and as a manager, I'm really guided throughout the entire process. So here you can see the timeline with the different phases and the deadlines of the different phases. So I know very, very clearly okay, this review phase has to be done for me today. So we're going to do it together. So it's very insightful.
Speaker 2:In the checklist, the review checklist, I can see, okay, during this phase, the review phase, what needs to be done. So it's very visible as well, okay, and it checks off off when things are done. You also have and that is very important. You have different roles in Yugo, so we have different types of users that you can define, and you can also define what this user can see or do, or you can link them to a specific department so this person can only see this department, this person can only take these kinds of actions. So you can really run the process and take control, as HR, over the process. Here you can see the different budgets. So for my indexation, budget, promotion, merits and bonus here I have some room left to divide it throughout my team. Here I have all my sub-departments that are beneath me and here is a brief overview. And this is actually quite an important one, because here is also a little check on your wage policy is also a little check on your wage policy. So here I can see that two people in my team are not between the comparatio of 70% and 130%. So I have to make that right during my review process right now. So that's very good. So I suggest we dive into it. So now I can see my entire team. I have here different tabs that I can use during the review. So this is just an overview. I can see which are the people in my team. I can add text, for example, this is the graduates, this one is a high performance, etc.
Speaker 2:During the review itself. I like to use this screen because here you can very clearly see what is actually the old wage of this person or persons, what is the new wage and what is the raise they got suggested based on the wage policy that I configured as an HR. So, for example, we will evaluate Edward in this case. I can see here all the details of Edward in which pay category is this person based and what is actually the wage that is linked to this person? Now, here at the bottom, I can see that he's a high performer and I'm deciding to give him a promotion. So he's increasing from a level 13 to a level 14. So he's visible here as well. I can see the impact. So the variable wage is also increasing. He's getting I hope for him a nicer car. It's because he's changed from category A to category B, and this is how I handle my promotion.
Speaker 2:What is very useful is that you can also compare two people or more people to one another.
Speaker 2:So, for example, I will compare Edward to Jeff because he's also Pay Academy 14.
Speaker 2:So I will compare them and then you can really see also the internal checks, so the internal benchmark, as they say.
Speaker 2:So here I can see the two people next to each other, the cross-wage, the compasso, the bonus amount, and I actually see here already that Jeff is making a lot more than Edward in this case. But it's also quite logical a little bit because Edward's new to this pay category, so he normally starts at the bottom of this pay category. So this is the internal check, the external check. I also have here reference wages and this is a reference wage that I get from Lara with the table they make, and I can see also the check and compare it to the reference wage, what I can do now, because I only compared Edward to Jeff, to one person, I can compare him to the rest of the team as well. So here in my benchmark this is an internal benchmark I can see his all benefits compared. So he's in his level 13 that he comes from. Now, after his promotion, he's in level 14, and I compare him to the other people in this team I can see, okay, indeed, he's a little bit behind on the rest. So I can.
Speaker 1:Not too fast make a decision.
Speaker 2:Yeah, I had to go back a little bit, so I can make the decision also to give him an extra, extra increase. For example, I will increase his merits with uh five percent. I can do this in uh percentages or in euros, so it's the same. So, increase his merits uh now. And I can see also that his comparison has increased until 84%. I think, okay, 84% is quite okay. So I'm approving this. And now Edward has been reviewed.
Speaker 1:And is this what the manager of each team will do during the process. So a manager will run through each colleague and then, based on the evaluation, set the merit and the promotion and so on.
Speaker 2:And the system actually is calculating the merits based on the merit matrix. That is, based on keeping it into account, the performance score and the comparatio, and this is one scenario. You also can use different increased scenario, but we see that this increased scenario that is used a lot, so I can evaluate my entire team like that. What I can do before sending it in is do a quick check on my comparatio Because, remember, we have a wage policy that is saying, okay, every comparison should be between 70 and 130%, and I can check here and see, for example okay, this one is below 70%, so I can give this person an increase, for example, of 100 euros. Now, immediately, the system will calculate okay, if you give this person 100 euros, the comparison will increase to 71%, which makes it okay. So I can submit. I can check for the rest and I can see okay, this is definitely the second person because Fran is making more than 130%. I can see that this person got an increase based on the table of 1% and I can, for example, choose to delete this one and give him no increase and submit. If I now go to the overview page, I will see that my key comparison checks, my errors from before are now gone. So everyone in my team is between those percentages.
Speaker 2:If everyone is reviewed, I can submit my review. I can confirm it. I can also give a remark saying, for example okay, I give this little remark based on my reviewing and I can submit everything. Now we're going back to my HR screen and I can split everything. Now we're going back to my HR screen and I can see, indeed, that this department has been reviewed. I can check everything. So I can open the department. I can check everything.
Speaker 2:If it's not okay, I can push it back to the manager and say, for example, okay, I don't think that Edward, for example, should. I don't think that Edward, for example, should deserve the promotion, but in my case I think he deserved it. So I will start the next phase, which is the communication phase, and what will happen here is I can generate my reward letters and this is a very important one, especially with the ESG coming up, because here you will communicate very clearly with your employees about what happened actually this cycle. For example, I will show you one of the letters. When it's generated, I'll download them now. Download them now, so I will show you, for example, what a reward letter can look like.
Speaker 2:So we'll send this letter to all the employees. So it's saying okay, congratulations, because in Hates, you have been promoted, you went up from level 13 to 14. The impact on your gross wage is this this was your bonus amount and everything will be adjusted on this date. So it's very clearly. And, of course, this letter you can alter it however you please. You can put your logo on it and also, for example, a little bit of comments from the manager throughout this piece of communication, because it's a very important piece of communication, and what is then actually the next phase is indeed the insights phase, or the reporting phase.
Speaker 1:These are the reports not for internally, but also for ESG.
Speaker 2:Yeah, so these are the reports. So the first one is the pay ratio uh report and this is actually, um, when you compare the lowest weight, or the lowest earner, uh, to the highest earner, uh, so for every and this is for my team, so this is just uh, in my team as an an HR, I can see those reports for the entire company as well. So this is just for my team I can see, okay, for every euro that the lowest earner earns or makes, the highest earner will make almost two euros. And then there's also a little bit of a way that you can see is my wage policy and my wages, are they fair? Is the difference not too high? You can also compare it with a median and per decide. So what you can do here is you can compare the gross wages, but you can also compare the bonus amounts and, for example, in bonus amounts we see a huge difference. So we see, okay, the highest earner. The difference is very, very big. So for every euro of bonus that the lowest earner gets, the highest earner gets almost three. So the difference in bonus is quite high. In this case.
Speaker 2:For the gender pay gap, we have kind of the same analysis, but then men versus women. So we see in for my division I'm not doing very well, because I think I'm above the Belgian average here, because I'm at 11, almost 12%, and you can see it's very in-depth also. For example, for the highest pay range it's only men in my case. For the lower pay ranges you see that there are also female present, and for the bonus I'm even off worse, because the difference there between women and men are 35%. So I still have some work to do. I don't think HR will be pleased if I send this for approval. And then the last one is the contracts. And this is actually an analysis that we also can alter depending on the needs of the company. But what we can do here is do a first check also between male, female, the age and the pay category. So okay, what is the division there? And evaluate that.
Speaker 2:The second one is the comparison pay charts. So here I can really see it's indeed everyone and all the comparisons are they in my wage policy. So you can see they fit nicely between that 70 and 100 and 130 percent. You can also see which person uh is, uh where. And then the last one is also the comparison between uh male, male and female and the comparison there is quite, uh, quite high as well. So so we see that men are making more money in my department.
Speaker 2:And then, lastly, we have the audit trail, and this is actually very useful as an HR to have insights as well, because here I can see everything that has been done, altered, calculated in the tool. So I really have a trail of all the decisions that were made and also who made them and which employees were affected by that decision. So I can see here we made some manual changes that is me now during the demo but I can also see what are actually the things calculated by the system, so actually calculated, recording the wage policy. So as an HR, if I'm, for example, I don't think I'm not in line with a certain decision or a certain wage, I can really dive into it and see, okay, what was the decision made there and by whom. And then we went through it very briefly.
Speaker 2:Of course this is a very high level, also a little bit focused on the ESG. It's important there to know. If you would like in-depth demo of Yubo, of course you can contact me or you can reach me through Nick. I'm sure you'll find me Okay and we can set something up as a short recap where can Yubo actually help you with your ESG reporting? So, in transparency, you can see which budgets have been allocated where, what are the benefits of all your employees. But you can also use it a little bit to say, okay, what if I make an offer for a new employee? Which is also important In fairness, insights in the gaps and pay gaps.
Speaker 2:You can also filter on gender, education, function. Insights on spreads, the highest versus lowest earner insights in comparison and also one-on-one comparisons, access to information. So that's also a very important one. The employee will have the right to have insights into their pay scales, etc. And, of course, a reward letter gives an answer to it. And also for job proposals, you can use it. And, of course, the reporting. You can report the plant department, physical location, job function. You can do it. And, of course, the reporting. I can report the plant department, physical location, job function. You can do it company-wide or very specific, and then I think, all right.
