“We wanted to know that our wages were competitive in the marketplace,”
Justin Gagnon, CEO at Choicelunch.
Why PayScale?
In the search for a new solution, Choicelunch tested several compensation management vendors—without the hoped-for results. “We tried other software, including Kenexa, but the data
was just wrong. It was skewed way high,” said Gagnon. “We knew there had to be a better way.” Choicelunch started using PayScale, a cloud-based compensation software that delivers
real-time data on 54 million salary profiles and 15,000 job titles. “Our first test with PayScale illuminated right away how our existing compensation rates led to high retention
in one market and high turnover in another,” said Gagnon.
Pain Points:
Gained insight into pay for unique jobs
Addressed retention issues
Increased transparency
The Results:
Gained real-time insight into pay for unique jobs
With PayScale, Gagnon and his team can ensure they’re paying competitively for many different roles, not just food service positions—crucial to companies that may
work in one industry but must hire across several. PayScale’s 15,000 unique job profiles make it simple for Choicelunch to review and compare all position salaries.
“When you have 220 employees, all working in different roles, in different cities, it’s really difficult to identify who is underpaid and who may be above market.
PayScale makes that easy,” said Gagnon.
Identified flight risks and addressed retention—within highly specific geographies
Before PayScale, Choicelunch saw varied retention rates across cities, even though employees were making the same amount. “We were basing all our rates off our home market,
assuming everyone should be paid the same. Yet turnover was really low in Huntington Beach and really high in San Jose,” said Gagnon. Because PayScale identifies compensation
medians within small geographic areas, Choicelunch can also compare and determine salaries within a single metropolitan zone, with multiple labor markets like Oakland and San
Jose. “PayScale is helping us more easily identify and monitor flight risks,” said Gagnon.
Increased transparency
Choicelunch now makes informed, real-time decisions regarding compensation. They also have access to hard, real-time data to show employees why they’re being paid as they are.
“What [PayScale] really has helped do is kick start the conversation around how to design a good compensation philosophy,” said Gagnon. “More than anything, I don’t ever want
people to feel they’re undervalued. I want people to
understand the value they bring and how much we value them. And nothing translates more than dollars in that regard.”
Get a Demo!
Had your fill of learning? There’s no time like the present, to start paying your employees the right way. Take action by getting a PayScale demo now!
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