It’s time to get the conversation flowing to bridge the gap between what HR understands about pay, and what employees don’t.
Just like every member of an organisation – from its employees to its CEO – is responsible for embodying the company’s culture and values, every member of an organisation should understand the company’s pay brand, because it is likewise part of the culture.
Managers, this is where you come in, and this is what you need to know.
* The company's compensation philosophy is something vital that every manager should know. Managers need to be able to answer all questions employees might have about pay in line with this strategy so that there is cohesion across the board.
Typical Pay Questions From Employees:
# Why this specific percentage increase?
# Why did I get a bonus of this amount?
# How much will my pay increase next year?
The more context employees get surrounding these questions, the more they will act as an ambassador for your company, rather than a detractor because where there is understanding, there is appreciation.
* Managers need to be trained to understand how the company is positioned in the market. Being able to explain this to existing employees acts a retention tool. Remember, context trumps everything.
Here are some important elements of pay to keep up to date on:
# How exactly a company sets its ranges
# How they remain competitive
# Who they compare themselves to
# Whether they are leading or lagging in the industry
* HR needs to offer guidance for not only how to discuss pay with new candidates coming in, but internally as well. You may have attracted great talent, but now you need to keep them and one way to do this is to keep yourself and your team informed on how you compensate.
# How to discuss salary increase with existing employees
# Promotions
# Demotions
# Bonuses
# Role changes or title changes
* We have come to understand through recent research that people don’t only care about salary when looking for a job. Money isn’t everything. They want to learn, grow, connect with their colleagues and be part of something big. They want purpose and meaning in their day-to-day.
But, this doesn’t mean that pay isn’t important, or that employees are willing to settle for less than what they deserve. It means that only once they are paid fairly and feel valued at the root, they tend to care more about growth than they do about money.
Compensation at the end of the day is the story of how much an organisation values their employees, and unfair compensation, whether perceived or real, could drive employees to leave the said company.
Courtesy: www.officevibe.com
