Here is the first in a series of short articles addressing some of the
more common compensation issues facing HR professionals today. Not really a lot of new issues or resolutions, but maybe the timing is just
right for solving one of your headaches.
The first of the Five Biggest Mistakes is Compensation Communications
- or lack thereof.
Believe it or not, there are still companies (excluding public sector
employers) who believe in trying to keep compensation information secret.
Pay structure - secret. Pay ranges - secret. Relationship of jobs from a compensation perspective - secret.
How long do you think it takes for employees (or competitors!) to figure
out what you pay for various positions? Employees simply share bits and
pieces of information as it comes to light and then share that information
- adding their own interpretation, of course - with their friends and
associates... and even competitors.
Share just about everything short of individual pay rates. Pay structure
- open to any employee who wants to know. Pay range - make sure employees
know where they are and what they can do to maximize their next increase.
Relationship of jobs - open to any employee, especially those considering
their career path and future with your company. What Michelle is making
- no way! That's confidential.
The more you try to keep things secret, the more suspicion and mistrust
you'll generate. The fear that sharing compensation information will
somehow lead to something bad is simply unfounded. I’ve personally never
found an organization that experienced negative consequences when openly
and honestly communicating basic compensation information.
Next month, we'll focus on mistake #2 - wage compression.
Starting in 1992, Effective Resources, Inc. has been providing salary, wage, and benefit data for the
Tampa Bay Area. Expanding on that success, the survey has been covering
the entire State of Florida and the State of Tennessee via their survey
website at SalarySurveyOnline.com. This survey is developed by professionals
for professionals. The survey is an invaluable source of information for
Florida employers of all locations and sizes, business owners, Human
Resource professionals, and educational institutions with graduating