This is an excerpt from our ebook collaboration with BambooHR “Getting Smart About Compensation.” Download the full guide here.
Managers are on the front lines when it comes to communicating compensation with your employees, and they have far more comp conversations than anyone else in your organization. Despite this, they’re usually ill equipped to have them.
In fact, according to research, only 19 percent of organizations feel very confident in their managers’ ability to have tough conversations about pay.
Many managers come to management because they’re great individual contributors, not because they demonstrated exceptional soft skills. But we can help managers when it comes to having these tough conversations by teaching them that compensation is about more than just money—it’s about an exchange of value.
Understanding the value drivers on both sides of the equation can lead to better comp conversations and more satisfied employees.
Only 19% of orgs feel very confident in their managers’ ability to have tough conversations about pay.
Data for the Win
When a manager is having a compensation conversation with an employee, it’s critical that the manager understand and recognize where the employee feels there’s a misalignment so he or she is able to address it.
An invaluable resource we can give managers when they’re having conversations with employees about comp is data, particularly in the form of an Employee Compensation Report. An Employee Compensation Report provides the data that allows a manager to say, “This is our compensation philosophy, and here’s where you line up.”
This allows an employee to trust their employer; the mere presence of an Employee Compensation Report tells employees that their company cares enough about getting compensation right that they’ve done due diligence on the compensation of each and every employee in the organization.
Want the step-by-step on creating and maintaining a modern compensation plan? Grab your copy of “Getting Smart About Compensation” today!
Tell Us What You Think
Are you confident that your managers are prepared to have tough conversations about pay? We want to hear from you. Share your thoughts in the comments.