Ten Tips For Discussing Salaries
Listed below are tips for getting the most out of discussing pay with your employees.
1. Be on Time!
When it is "review" time, remember that your employees have been waiting all year. Be sure to conduct the pay discussion on schedule. If there will be a delay, have the courtesy to let the employee know when a rescheduled discussion will occur.
2. Protect Pay Confidentiality.
Payroll information is confidential and extreme discretion should be used to prevent unwarranted release of private information.
3. Learn your organization's pay philosophy.
When you have an understanding of the organization's approach to pay, benefits and related compensation matters, you can discuss pay matters more confidently.
4. Be sure to follow any defined guidelines or procedures relating to the organization's pay and performance policies.
5. Avoid pay promises.
When discussing future pay matters, it is best to avoid promises about future pay increases. Unforeseen business or organizational issues may occur preventing a promised pay increase.
6. Obtain Approvals.
In most organizations, pay decisions are approved by upper level executives. Be sure to have all necessary approvals before discussing pay with your people.
7. Discuss pay in private.
A private discussions about pay not only protects confidentiality, but it also promotes a more frank and honest discussion of pay and performance issues.
8. Correlate pay and performance.
Most organizations believe in a pay for performance philosophy. Try to identify specific examples of job performance which support the pay adjustment.
9. Answer questions.
This is an opportunity for open communication with employees. Do your best to be responsive to the employee's pay questions.
10. Consider the big picture.
Factors that influence pay include company profitability, budget limits, economic conditions, industry, location, as well as the individual's job performance.
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William S. Hubbartt is president of Hubbartt & Associates, a St. Charles, IL consulting firm specializing in employee compensation, employee handbooks, personnel policies and supervisory training. (www.Hubbartt.com) Mr. Hubbartt is author of The New Battle Over Workplace Privacy, published by AMACOM Books.
