Compensation: What Do Your Managers Say to Employees?

If an employee in your company asks a manager, “How are salary levels determined?” or “Why does my coworker make more money than me?” are you confident the employee will get a good answer? One that’s correct, legal, and delivered well?

According to this report, 75% of companies have a formal compensation philosophy/strategy or are working on one. But less than half (43%) offer manager training on how to communicate compensation.

The Tool Kit for Talking Comp

If you don’t offer training, at least equip managers with a tool kit that lays out the company’s compensation structure and helps them explain all the components of compensation — not just the pay.

  • Total Rewards/Compensation Statement — something tangible to talk through in a one-on-one meeting.
  • FAQ — be sure to include all the hard questions (and tell them what they should not answer).
  • HR Guide to Compensation — with more detail a manager can reference — perhaps with information on career paths, recognition, and rewards. Check out this one we created for a client.

If you want to retain talent, it’s important managers know how to convey the full package of compensation provided to each employee working at the company. Help them understand it’s much more than just a paycheck.