Updated: Feb 7
Recently, we ran a poll on how comfortable people were talking about pay with their teams and we asked what gets in the way for people. The result was that there was an even 50/50 divide on how comfortable or uncomfortable people are in having these important conversations. As promised, we then created a resource around addressing pay to share some best practices. Total Rewards are comprised of Compensation, Benefits, and other perks. Yes, you guessed it: Some of those are intangible like culture. Creating a fair and equitable environment and one of engagement is another component to setting pay. The decisions you make determine the path forward and how your team approaches their work. Consider whether you'll pay based on performance (a best practice) or what your guidelines will be.
Don't avoid the conversations on pay when they pop up outside of Performance Appraisal time or when employees share with you that they've learned of how much another employee is compensated. It's a common myth that employees aren't allowed to talk about pay in the workplace, but employees have rights in the workplace to discuss their pay.
Are there rare exceptions on discussing sensitive items? Absolutely, so please consult with your internal or external Legal Counsel to find out what applies to you in your state, industry, and organization specifically. Take a peek at this article and the guidelines set forth and reach out with any questions. We'd rather have you connect than be uncomfortable and not start a conversation!