Your employees know how much they’re paid, but do they truly understand the full value of employment with your company? Chances are, they may not understand the “big picture” when it comes to the many ways you’re rewarding them. From paid time off to tuition reimbursement, compensation goes far beyond base pay alone. Communicating compensation is essential to helping them see a complete overview of how they’re rewarded. With compensation management software and the following practical tips, you can enhance your communication around pay and total rewards in your organization.
1. Establish a Compensation Philosophy
A compensation philosophy explains the rationale behind pay decisions. Every company should have one, and it should outline both how and why pay decisions are made. It should also describe the overarching goals of the company, which employee behaviors support those goals, and whether you’ll lead or match competitors in terms of pay. Finally, include how you’ll maintain fair and equitable pay practices. Train managers on your philosophy, and encourage them to discuss it regularly with their direct reports.
2. Tailor Your Messaging
Many workplaces are diverse, and employ people from multiple generations. Keep in mind that certain groups of workers may expect to receive messages about compensation differently than others. While Gen Xers and Millennials might be comfortable receiving updates through your company’s employee portal, for instance, others may wish to have sit-down conversations with their managers. Sometimes, a blended approach is necessary to accommodating all members of the workforce.
3. Make Communication Ongoing
Compensation communication is not a one-and-done activity. To fully understand the value of your total rewards packages, employees need to be reminded of everything your company offers at regular intervals. This could include sitting down with managers to discuss developmental opportunities during routine one-on-one sessions. Or, you might use your compensation management system to trigger reminders leading up to enrollment periods for health insurance and similar benefits. Either way, make sure employees are regularly hearing about all of the great perks your company offers so they stay fresh in their minds.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.