How do employees at your organization feel about their compensation? If the answer is “Not good,” a bit of explanation from you or their supervisors can calm those troubled waters and help reduce turnover.
In fact, only one-quarter of U.S. employees believe their base pay fairly represents their contributions to their organization, according a Society for Human Resource survey.
The solution: Employees report more satisfaction with compensation (and their jobs overall) if their employer fully explains , including how much employees earn in benefits and how their compensation levels are determined.
You may offer comfort to disappointed employees by putting their pay into perspective. Some tips:
- Compare the pay raise to inflation, which is expected to rise at 2 percent to 3 percent this year. An average pay raise of 3.5 percent or 4 percent beats inflation, so employees are coming out ahead.
- Explain that raises are limited, in part, by the rising cost of health insurance. Employers around the world—not just your organization—are granting modest raises this year. (Point out the health premium increases your organization has shouldered in recent years.)
- Illustrate the dollar value of by distributing total compensation statements at least twice a year, not just annually.
Final tip: Familiarize yourself with the answers to questions concerning how much your organization’s executives earn.
New Securities and Exchange Commission rules require public companies to disclose how much their top executives earn in pension income and deferred compensation, so your employees can look this up. They may resent the organization for the higher-ups’ high salaries.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2254/use-the-right-words-to-silence-pay-related-gripes "
- 5 ways to keep mandatory overtime from boiling over
- Good news: Supreme Court eases path from N.C. to federal court
- Sample Policy: Time Sheets
- How assertive are you? 18 questions test your ability to be positively persuasive
- Spell out FMLA intermittent leave timing in handbook—or risk a million-dollar mistake