Webinar Recap - Become a Strategic Partner: Compensation and the Business Mindset

There is growing pressure on compensation professionals to be more strategic and drive business impact. But what does that really mean and how do we get there? That’s exactly what we tackled in the webinar, Become a Strategic Partner: Compensation and the Business Mindset. As one of the panelists, I had the incredible opportunity to join Athar Siddiqee from Micron Technology, Nancy Romanyshyn from Syndio, and Alan Miegel from BetterComp and dive into a topic that is redefining the role of Comp Pros. 

We explored what’s driving this shift towards the business mindset today, the challenges Comp Pros face along the way, and how we can overcome these roadblocks to excel in our careers. It’s an invigorating time to be in this space, and I’m excited to walk you through some of the main insights we discussed. 

What is a business mindset and why is it important? 

Having a business mindset is what allows you to position yourself as a strategic partner to the organization, and not just the person who handles day-to-day tasks. Comp Pros with a business mindset excel at 3 things: 

1. Asking “Why”

They don’t settle for surface-level answers or stick to practices just because that’s how it’s always been done. Instead, they dig deeper to uncover the reasoning behind decisions. This approach is especially critical in today’s era of pay transparency. With pay decisions more visible than ever, organizations and Comp Pros face increasing pressure to justify and explain the rationale behind their compensation practices.

However, this doesn’t mean you need to have all the answers. It means you should be curious. By being open to asking questions and challenging assumptions, you can foster collaboration and drive better outcomes. Nancy shared that many of her most impactful conversations aren’t those where she enters with an answer but rather when she comes with  “questions in mind” and is able to “collaborate with whomever [she’s] speaking with to come to a solution.” 

Seeking to understand the “why” and approaching conversations with curiosity can not only help you connect compensation strategy to business outcomes but also build stronger partnerships across your organization.

2. Tailoring Compensation Strategies to Specific Business Goals

One-size fits all compensation strategies won’t cut it today. It’s no longer enough to just look at benchmarks and check for compliance. Athar emphasized that Comp Pros must understand both what the business aims to achieve and what motivates your team—then design a tailored compensation structure that ties the two together. 

This involves asking more strategic questions, such as: 

• How can we structure pay ranges to attract top talent while meeting organizational goals? 
• What incentives will keep our most valued employees engaged for the long term?
• How do my compensation decisions impact the business’s bottom line?

Finding answers to these strategic questions can help you design compensation structures that motivate your team, support organizational goals, and ultimately move the business forward. 

Noticing a theme? It all starts with asking the right questions. That’s why we've put together a list of questions to help you better understand the business and assess the impact of compensation. Check out our resource: Compensation as a Business Driver: Understanding Metrics and Strategies.

3. Communicating the Link to Business Goals

Understanding your business’s needs and the “why” behind compensation decisions lays the groundwork for developing a business mindset. However, to be a true strategic partner, you must be able to clearly demonstrate your impact to the business leaders. This starts by drawing the line between business objectives and compensation strategies. 

For example, if your company plans to expand into three new geographic regions next year, how can your compensation strategy support that goal? And how can success be measured? Comp Pros who excel as strategic partners effectively communicate how their strategies support key business objectives. In doing so, they demonstrate that compensation is not just a cost but a strategic investment in talent.

Overcoming Common Roadblocks In Becoming A Strategic Partner

In the webinar, I highlighted three key roadblocks that I see many Comp Pros face on their journey to becoming strategic partners: Perception, Communication, and Resistance. 

Let’s explore what each of these means and the practical advice our panelists shared for overcoming them.

1. Changing Perception

Compensation has traditionally been viewed as a more tactical function, handling benchmarking and compliance, rather than as a key player shaping company strategy. To change this perception, we need to clearly demonstrate how compensation impacts engagement, retention, and productivity. 

A powerful way to make your case is by backing it up with data. Having proof in the form of reliable data helps ensure that your recommendations resonate with leadership.  As Nancy observed, leading total rewards professionals are exploring various data sources and analytics and leveraging these insights to clearly demonstrate their impact on business outcomes. Using tangible evidence to connect compensation strategies to measurable business outcomes helps build credibility, making it easier to shift the narrative and position yourself as essential contributors to the company’s overall success. 

2. Improving Communication

Being a good communicator involves both being a good listener and expressing yourself in a way that resonates with your audience. 

A big part of this is speaking the language of your business leader by understanding the key words and terminology they use. Having this knowledge can get you on the same page and establish credibility. It’s also important to prioritize what you want to say in a way that reflects what your business leaders really care about. Aligning your message with their priorities can make your communication much more impactful. 

Athar also emphasized the importance of learning the language by “spending time with the business.” This is because you really need enough knowledge of the product and your company’s goals in order to make a meaningful difference. Attending all-hands meetings from different departments is one way to spend time with the business. By doing so, you can learn the terminology, priorities, and challenges of these different departments. Mastering this can earn you a seat at the table because, as Athar explained, now when you make a case, it’s no longer a random idea you had, but rather “something that is rooted in your understanding of what they're trying to achieve.”

If you are looking to learn common business terms your leaders are using, download our resource: Compensation as a Business Driver: Understanding Metrics and Strategies. 

3. Managing Resistance

Long-established companies and professionals can sometimes be especially resistant to changing compensation practices. You can overcome this by building a business case that includes relevant data, industry trends, and projected return-on-investments. As stated earlier, having proof in the form of relevant and reliable data can always make your case stronger. Another way to manage resistance is by partnering with others who support your initiatives. As Nancy explained, "The more you can network internally and... communicate with colleagues and other folks that can influence [the project], ... the better the result will be. You're going to be able to overcome those challenges because... that leader is hearing... a surround sound of the direction that you should be taking.”

The role of Comp Pros will be evolving in the next 5-10 years

In the next 5-10 years, the role of compensation professionals will undergo significant changes, many of which will be driven by the rise of technology. Today, companies and employees have more access to data and insights than ever before, and this trend is only going to accelerate as technology continues to advance. As this shift happens, it will become even more important for Comp Pros to be analytical and strategic. As Nancy highlighted, technology will be excellent at zooming in and providing details, but it will be up to us to zoom out and “put those pieces of the puzzle together in a compelling way and deploy talent in the right way.”

With how fast the compensation landscape shifts, Comp Pros will need to stay adaptive and keep pace with industry trends. As Athar indicated, “we are going to be having to consider things that we didn't do before.” This will require us to stay flexible and curious so we can respond to new challenges and opportunities efficiently and effectively. 

Looking ahead, one of the biggest shifts I anticipate is a more diverse workforce. This will demand an even greater need for tailored compensation structures, as well as a more holistic approach to compensation. As the complexity grows, Comp Pros will need to partner more closely with HR, Finance, and business leaders to ensure compensation strategies can meet both the needs of the diverse workforce and the company’s objectives. 

Essentially, Comp Pros are going to be playing a key role in this changing world, and having a business mindset will become a must-have skill. By embracing these changes today, Comp Pros can begin shaping their success for tomorrow.