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In a recent webinar, Bryan Briscoe, VP of Total Rewards & HR Operations Americas at TK Elevator, and Kaitlyn Knopp, CEO of Pequity, discussed the critical role of storytelling in HR and compensation management. This insightful conversation highlighted how storytelling isn’t just a soft skill; it’s a vital tool for driving understanding, alignment, and action.
Why Storytelling Matters in Compensation
Bryan began by sharing a fascinating case study known as the Significant Objects Project. Researchers purchased 200 low-value items for $250, added compelling stories to each, and resold them on eBay for a staggering $8,000. The lesson? Stories add depth, context, and emotional resonance, transforming perceptions and creating value.
This principle is as applicable in compensation as it is in marketing. A well-told story can help employees and executives alike grasp the "why" behind complex pay structures and decisions. For compensation professionals, mastering this skill isn’t optional—it’s essential.
The Role of Storytelling in Pay Philosophy
One of the most illuminating aspects of the conversation was how storytelling intersects with compensation strategies. For example, Bryan emphasized that every compensation program tells a story, whether intentional or not. The narrative might be about rewarding tenure, incentivizing high performance, or addressing market competitiveness. If the story isn’t clear, employees may invent their own—often inaccurate—versions, leading to misalignment and dissatisfaction.
To illustrate, Bryan shared a scenario involving a merit cycle. When data revealed that a company’s metrics didn’t align with its stated goals, it became clear that the underlying narrative was broken. By addressing these discrepancies and crafting a consistent story, the organization was able to realign its compensation practices with its objectives.
Crafting Stories for Executive Buy-In
When working with executives, time is precious, so storytelling must be succinct and impactful. Bryan highlighted the power of analogies as "micro-stories" to bridge complex concepts and actionable insights. For example, he compared setting minimum goals for sales incentives to amusement park height requirements: "What do you need to ride the ride?" This simple analogy reframed the conversation and drove consensus on a contentious issue.
Kaitlyn Knopp, CEO of Pequity, built on this point, emphasizing the importance of connecting storytelling to data. "Storytelling allows us to take the raw data and make it digestible for humans. It’s not just about selling an idea; it’s about helping everyone see their place within the narrative," Kaitlyn explained. She described a case where an ineffective equity program for hourly workers was replaced with a targeted bonus plan. By presenting a single slide summarizing the inefficiencies and potential savings, the team persuaded the CFO to pivot strategies, ultimately improving outcomes for employees and the business alike.
Addressing Pay Transparency
In the era of pay transparency laws, storytelling takes on even greater importance. Kaitlyn discussed how companies like Google have leaned into transparency by sharing their merit increase logic and market comparisons. For organizations with fewer resources or a less glamorous pay scale, Bryan advised focusing on process transparency and setting realistic expectations.
For instance, explaining that merit increases reflect a moment in time—not a lifelong judgment—can shift the narrative from frustration to motivation. By framing compensation as part of a broader journey, rather than a single transaction, managers can help employees see opportunities for growth and progression.
Avoiding Common Pitfalls
A key takeaway from the discussion was the importance of acknowledging challenges openly. Both Bryan and Kaitlyn noted that HR professionals often shy away from sharing negative outcomes, fearing backlash. However, transparency fosters trust. Whether it’s explaining why merit budgets are tight or outlining the trade-offs of certain decisions, honesty resonates far more than avoidance.
The Bottom Line: Using Stories to Lead Change
Storytelling in compensation is more than a tool for engagement; it’s a mechanism for change management. By weaving data, context, and emotion into a compelling narrative, HR leaders can:
- Secure executive buy-in for critical initiatives.
- Enhance employee understanding and satisfaction.
- Align compensation practices with organizational goals.
As Bryan concluded, "There’s more than one way to win at work." Whether you’re advocating for budget increases, redesigning a bonus program, or simply communicating a pay philosophy, a well-crafted story can make all the difference.
Watch the Full Recording
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