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Use this research to learn how to accomplish successful compensation discussions, and keep direct reports satisfied and knowledgeable regarding the organization’s compensation policy. The formality of the policy is not relevant – it is the rationale behind the business decisions that dictate compensation decisions, which acts as the tipping point between understanding and frustration for employees.
Successful compensation discussions are centered around three elements:
- Formality; the use of policy and rationale to justify compensation decisions.
- Transparency; the accessibility of compensation information to all members of an organization.
- Consistency; the quality of messages that pass between all levels of the organization.
These three elements build trust and ultimately retention. Inject all three into every compensation discussion.