Avoiding Pay Disasters

When you prepare to talk to an employee on your team about their pay, be sure to have all the facts gathered.

This means you know what you are paying them and why. Often the “why” is tied to performance.

Anticipate the employee’s questions and prepare so you can confidently answer.

Make sure you schedule the meeting at a time when neither of you will be tired, angry, frustrated, or hungry. Being distracted by these things only makes a pay conversation potentially more difficult.

And remember to consider the feelings of the employee as well as your own feelings.

The employee may feel anxious and worried. They may be anticipating a lower pay increase than what you are giving them.

How will you put them at ease? How will you share the factors that were considered when you made the salary decision?

What will you feel during the conversation? Are you going to be confident and relaxed or nervous and worried?

How do you plan on managing your emotions in the moment?

Preparing is the key to success. Don’t go fast and screw this up.

Don’t rush. Allow plenty of time for the conversation to unfold.

You can provide recognition and a reward that is valued and builds trust with your employees.

Or you can provide an experience that negatively impacts their motivation and productivity going forward.

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