Giving employees a thorough understanding of how they are compensated empowers them to also understand what type of performance is rewarded. So reports Business Management Daily.
BMD advocates transparency in the compensation process. Further, while it is generally good practice not to disclose the salaries of other employees, it is against the law to retaliate against employees for discussing their salaries and benefits.
The article also recommends showing how performance and pay are related.
“One of the most attention-getting ways to frame the big picture is to show how rewarded performance contributes to the organization’s goals. Let employees know regularly how better service, higher quality and lower costs add to the organization’s success, and how that success relates to employee compensation.”
BMD also recommends giving workers a fair chance at improving their compensation and following through on conversations related to pay.