“Compensation has lived in a black box for too long. My goal is to bring it into the open—strategically.”
— Scott Trumpholt, Founder of HR Compensation Consulting

🎙️ Episode Summary

If you’re losing candidates or watching your best employees disengage, it’s worth asking: is your compensation plan helping—or quietly hurting—you?

In this episode of The Hiring Edge, host Josh Matthews speaks with compensation consultant Scott Trumpholt about why so many pay structures fall short—and what growing teams can do to fix them.

1. Treat Compensation as a Living System

Most companies set pay ranges once—and forget them. But employees want to know how they grow within those bands, and what skills or business value drive their progression.

This isn’t just about annual raises. It’s about giving managers the tools to:

• Explain how pay connects to performance
  

• Outline what success looks like in evolving roles
  

• Offer clarity on how employees move from midpoint to top-of-band

That clarity builds trust and keeps your best people from quietly checking LinkedIn.

2. Make Bonuses Predictable—Not Mysterious

Bonuses often backfire because employees don’t understand them—or don’t trust them.

Instead of vague promises, Scott recommends creating a simple bonus calculator. It allows employees to model their potential payout based on different performance levels—before the bonus cycle even begins.

This small tool drives engagement, improves planning, and removes the end-of-year frustration of surprise numbers.

3. Don’t Let Salary Sites Run Your Comp Strategy

Salary.com, Glassdoor, and similar tools can be helpful—but they’re rarely enough. The data is often skewed by:

• Inflated or inconsistent job titles
  

• Self-reporting by underpaid workers (especially those on visas)
  

• Small sample sizes with no industry or regional adjustment

Strong compensation plans rely on calibrated, verified data sources—especially when you’re hiring competitive talent in Salesforce, tech, or consulting.

4. Design Bonus Plans That Encourage Performance (Not Frustration)

Team-based incentives can foster collaboration—or create resentment. The difference is in how you design them.

A strong plan will:

• Weight team and individual goals in a way that actually matters
  

• Highlight underperformance through clear metrics
  

• Avoid “coattail payouts” where non-performers are rewarded equally

When designed well, bonus plans do more than reward—they identify who needs support and who’s ready for more.

5. Understand the Difference Between Cost of Living and Cost of Labor

Remote pay equity is a hot topic—but it’s often misunderstood. Many companies confuse cost of living with cost of labor. Here’s the difference:

• Cost of living reflects what it costs to live in a city (rent, groceries, etc.)
  

• Cost of labor reflects what the market pays for a job in that city

Most organizations should build their compensation model around cost of labor. It’s more predictable, more scalable, and more closely tied to how talent markets actually work.

Bonus Insight: Salary Guides Aren’t Always What They Seem

Salary surveys sound credible—but they’re not always built on quality data. Some are based on opinion. Others are padded by firms looking to drive up billable rates.

Use them as a reference, but don’t let them dictate your strategy. Scott’s advice is clear: real compensation planning requires real data—and clear intent.

Final Thoughts

Compensation touches everything: recruiting, retention, trust, and culture. When it’s clear and structured, your team knows where they stand—and where they’re going.

If your organization invests in top-tier software and hires premium talent, your pay structure should reflect that same level of intention.

About the Guest

Scott Trumpholt is the founder of HR Compensation Consulting and has spent over 30 years helping organizations create compensation systems that support growth, performance, and fairness.

About The Hiring Edge

The Hiring Edge is the weekly podcast hosted by Josh Matthews, founder of TheSalesforceRecruiter.com, offering practical advice for scaling Salesforce and tech teams with clarity and confidence.

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