Communicating wage and salary information
Communication
Effective communications about compensation makes employees more aware of the value they receive from their compensation plan. When employees have a good understanding of their compensation plan they are more confident that they are being paid fairly - which results in greater motivation and retention.
A compensation communication strategy should be created in alignment with the organizations HR strategy as well as be supported by management.
The level of transparency is highly dependent on the organizations culture and varies for each organization. Ideally; employees should be advised of their own salary, their job grade / level, the position of their salary in the salary range for their job grade / level, the basis for progress through the range over time (seniority and / or performance), and the procedures for annual salary adjustments (if any).
Communicating total compensation information through formats such as statements, booklets, newsletters and memos provides a consistent message and allows employees to refer to the material later. Presenting compensation information through meetings, workshops and ongoing support allows interaction so individual questions and concerns can be addressed immediately. Overall, it is important to ensure employees have access to information regarding the compensation plan and that it is provided in clear and concise language. A compensation plan can also be used to attract prospective employees and therefore effective external communication is also important.