Wage and Salary Administration: Traps to Avoid

by on June 15, 2009 · 0 Comment POSTED IN: HR Info Center

Don’t lie to employees about wage and salary administration when they’re young

Some do’s and dont’s for your wage and salary administration. We want to kind of summarize things here in a couple of big areas. Do talk to people. Do talk to employees like they’re an adult and you’re an adult having a conversation with them.

Do build the salary system that stands up to scrutiny. Do talk to each person about where they fit in the larger picture.

Do not try to link performance directly to pay. You can’t do that and it’s never going to work if you try to incorporate that into your wage and salary administration.

Don’t discuss salaries. So don’t come in to somebody and say, “Hey we’re not paying you a lot more than we’re paying Jane next door”. That isn’t going to work for you for long.

Don’t promise people things you can’t deliver. Don’t promise that next year you’ll give an employee even more until you know that’s possible. And don’t lie to employees about wage and salary administration when they’re young.

It’s really easy to tell the pay for performance lie when they’re young, because of your wonderful outstanding contribution last year and your extraordinary effort, I’m giving you the best grade which is giving you the big increase. That only works when they’re young.

When they eventually get grown up, you’re going to have to change your story. So don’t lie to them in the beginning when it’s fun because you’re going to pay for it for years after.

Edited Remarks from “Salary Talk: How To Discuss Pay So Employees Feel They’re Treated Fairly” by Gary Markle

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