Pay transparency and equity laws are going to continue to be passed in the U.S. and globally.
Your efforts as an employer to comply will become more complex. It will require HR and Compensation to:
· Manage and understand pay and performance data better than ever before
· Influence employee expectations and the perspectives of senior executives
· Document and follow standard processes
· Alignment of resources (people, money, and time) to the compliance effort
And for the employers who want to do more than comply, they will also focus on:
· Shifting from reactive to proactive communications
· Caring about employee well-being and needs at the same level as business needs
Your employees are already asking more questions. Everyone is an expert on what they should be paid.
If you can’t explain things quickly and easily to employees, managers, and senior leaders, you will be viewed as not being prepared. Trust in you and your team will erode.
I’m assuming you are already hearing questions like this from employees:
1. What is the base salary range for my job?
2. Why am I being paid below the midpoint of the range?
3. What do I need to do to get a pay raise?
4. Why is my bonus payout less than the target?
5. What metrics are used to calculate my bonus? How can I influence those metrics?
6. I disagree with how you assessed my performance against the metrics. Who do I escalate this to?
7. I think the commissions you paid me are incorrect. Can you show me the calculation you used for this payout?
8. When can I expect to get a promotion? I’ve been performing my current job for 2 years.
9. Why haven’t I received a pay increase in the last 3 years?
10. Why did Bill get a promotion last week? I've performed the same job as Bill for 2 years longer and am not getting promoted. Why?
If you don't know how to answer these questions quickly, then you've got some work to do.
My team and I are here to help. Let’s talk.
#pay #payequity #paytransparency #compensation #rewards #hr #humanresources #communications