Compensation and fair pay seem to be taboo topics that companies and employees rarely discuss, so much so that employees perceive a gap when it comes to how much they earn versus how much they feel they deserve. When workers feel as if they don't receive enough pay and company leaders think their employees make plenty, it creates a bad situation of dissatisfied and disengaged workers.
2016 Surveys
The gap in perception of fair pay was apparent in PayScale's 2016 Compensation Best Practices Report. Among 7,600 business leaders surveyed, 73 percent felt they paid employees enough. However, just 36 percent of employees who responded to the PayScale survey believed they received what they were worth. Similarly, 70 percent of the 8,250 respondents of an April 2016 Glassdoor survey wished they understood what fair pay meant among employees.
Determine a Strategy
As such, companies might consider developing a top-down strategy that talks about fair pay. HR should budget precisely what it needs for compensation, benefits and bonuses. Pay structures should reflect a range of competitive salaries with the skills, qualifications and expertise needed to earn those salaries. Performance metrics determine bonuses, raises and promotions. All of the data, along with analytical software, provide concrete evidence for how employees receive pay and benefits. The strategy starts any conversations about pay.
Maintain Relevant Feedback
Business professionals should listen to the concerns of employees year-round rather than just at an annual performance evaluation. Discussing fair pay involves a two-way conversation because it makes employees feel as if they are invested in the outcome of their jobs, and talking about salaries keeps workers engaged at the office. Managers, supervisors and executives must outline the expectations of employees so they know exactly what it takes to earn a raise or make a bonus. By the same token, workers should know how to assess their own performance and ask managers for assistance as they try to improve their productivity.
The first time an employee discusses salary occurs during negotiations after the initial hire. Unfortunately, the conversation disappears for another year, until the annual performance evaluation in a traditional setting. A constant, two-way conversation involving salary takes employees who know how much they're worth and transparency on the part of managers in forward-thinking companies.
Keep Data Transparent
It's not enough to mention pay, talk about industry standards and then adopt a strategy. Managers and supervisors must be willing to talk to employees about compensation packages when necessary — and not just once per year. They can easily have honest conversations because of the information available that supports any talking points. Managers can look at data, performance metrics, assessments and feedback to start talking about compensation. Eventually, firms realize that there's no stigma against talking to employees about money at the workplace.
Mentioning fair pay and compensation can occur in more settings that just an annual evaluation. Once employees realize that the company has a strategy in place, always examines data and wants to talk about compensation with individuals, the stigmas against this taboo disappear.
Photo courtesy of sdmania at FreeDigitalPhotos.net
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!