Pay Transparency & Total Rewards: DataRobot’s Director on Benchmarking, AI, and Paying for Performance

Summary

Curious why employees mistrust comp decisions — even when they’re paid well?

Michael Downey, Director of Total Rewards at DataRobot and a compensation leader with 15+ years of experience (and a former teacher), explains how clearer communication, practical benchmarking, and smarter use of AI can turn compensation from a source of confusion into a competitive advantage.

Michael walks through "retro tech" benchmarking practices, why leaders must become educators on total rewards, how to shift from tweaks to true pay-for-performance, and the surprising ROI of simply telling employees when they’re paid above market.

Listen for concrete steps to improve trust, retention, and manager conversations using tools like Workday, market data, and simple leader-led calibration exercises.

Timestamps

[00:19] – Guest intro: Michael Downey, Director of Total Rewards at DataRobot  

[01:21] – Earliest money memories and how childhood work shaped views on responsibility  

[07:37] – Teaching background → translating complex comp into education for employees  

[10:15] – Where comp and benefits breakdown most often: the total rewards understanding gap  

[12:12] – Moving from uniform raises to true pay-for-performance; eliminating undifferentiated bonuses  

[15:10] – Trend focus: why pay transparency will keep shaping hiring and retention  

[19:44] – Tools and approaches: AI, Workday, market data and the “retro tech” benchmarking routine  

[22:35] – 30-day experiment: one practical audit to boost financial well‑being and engagement

Takeaways

- Lead with data: run regular benchmarking conversations (anchors and outliers) to set a fair foundation for pay decisions.  

- Tell employees where they sit: proactively communicate when someone is paid above market to build trust and retention.  

- Shift pay design: replace undifferentiated bonuses with meaningful, differentiated increases to reward top performers.  

- Equip managers: train leaders to explain total rewards (salary, benefits, equity, perks) not just post ranges.  

- Use simple tech and routines: leverage Workday/AI and a retro-tech calibration every 6 months before broader comp changes.  

- Run a 30‑day pilot: identify employees paid above market, check whether they know it, and start those recognition conversations.

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