I’m burrowing-in this weekend to study for the 5th module exam in my journey to achieve Comp certification via WorldatWork (WaW) and came across a section that got me thinking about something I’d like to share with you.
We all know that employees talk about their pay. They sometimes get into an “I’ll tell you mine if you tell me yours” scenario when they want to know what other employees are making. As a result, a lot of misinformation gets bandied about and what started out as a potentially awkward situation can quickly stumble into employee relations quicksand.
The CCP* study guide advises employers to communicate their pay program to employees and I heartily agree. In a nutshell, it conveys that communicating your pay program not only helps avoid employee relations snafus but also helps maintain compliance with business objectives as well as applicable laws and regulations.
Here’s my take on WaW’s tips for effective compensation communication:
- Get senior management on board with your communication plan before you roll it out to the management team and, if need be, make adjustments to address any concerns they have.
- Develop/utilize multiple avenues for communicating compensation information to employees. For example, some employees relate well to email, memos, etc. and some prefer face-to-face.
- Train management team members so they can be the primary conduit for and effectively communicate compensation information to employees. Give them the tools they need to feel comfortable discussing compensation in group settings as well as one-on-one with employees. WaW suggests creating a compensation guide for the management team.
- Be available for back up and support as needed.
Do you have tried and true methods for making compensation a less slippery topic around the water cooler or maybe even removing it from that conversation all together? If you do, please share.
Almost forgot …
Additional, helpful comp-related information:
- Sales Compensation Plan Makeover: How to Fix What’s Broken & Rejuvenate Your Sales Force
- Variable Pay: Using Incentive Compensation to Boost Performance Beyond the Merit Pay Process
- Winning Compensation Scorecards: What and How to Measure for Effective Results
Back to work …
My exam for this module is Monday so fingers crossed, knocking on wood. Anybody got a four-leaf clover I can borrow?
* Certified Compensation Professional