Salary Administration Do's and Don'ts

by on June 11, 2009 · 0 Comment POSTED IN: HR Info Center

Be open and direct, but don’t promise salary administration that you can’t deliver

Do talk to employees like an adult to an adult. Do build a salary administration system that stands up to scrutiny. It’s hard to talk to an employee like an adult if you don’t have one that actually will hold water when you do it.

Do talk to each person about where they fit in the larger picture. Let them have a feel for the future as well as their present situation so, that they have some idea what they can expect in future salary adminstration.

And if they’re capped out, that’s okay. Just let them know that they’re capped out and what that implies. They ought to be happy. They’re getting paid as much as anybody should get paid to do what they do.

Don’t link performance directly to base pay. If you try to do that, it’s just a complete set-up. Last year’s performance tied directly to this year’s salary administration is a set-up because of the factors like your budget and their comparatio being much bigger in the picture than their last year’s performance.

Don’t discuss salaries with peers. Be open and direct. There are some people who are smart enough to do the research and put together the composite picture. You probably shouldn’t be the one that gives them all that stuff because it ends up being a drain on energy and time.

Don’t promise what you can’t deliver. Don’t tell people that you are going to be able to pay them more than you ultimately can pay them. Get it right. Get the information you need before you start making commitments.

Don’t lie to employees about salary administration when they’re young. Don’t give them that pay for performance big lie of, “We really like you. Because of your wonderful contribution, we’re giving you the big grade and the big grade gets you the big increase.” Don’t tell them that. Because eventually, the fun goes away and you’re going to have to ‘fess up one of these days that that really isn’t how it works. You can’t sustain it long term. So, it’d be better not to start when they’re young.

Edited Remarks from “Drain the Drama from Salary Reviews: A Conversation Roadmap” by Gary Markle

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