A new survey released by World at Work indicates employees don’t understand their employer’s compensation policy and philosophy. Given that most employees work to earn money (not for fun!), and most want to earn more money, this is surprising. Uninformed employees aren’t likely to be as focused on the outcomes that really matter to their organization, and not achieve their personal income growth goals. It is also surprising that employers allow it to exist; uninformed employees are not fully aligned with the strategic objectives of their employer’s compensation programs, undermining their value and impact. Everyone loses with this disconnect!
Does this disconnect exist at your organization? These three action steps will help:
- Communicate: Educate and update your employees frequently about compensation philosophy, as well as your total benefits package. Try new creative ways: discuss at employee meetings; email a message at every payroll; use fun posters or flyers; post quick “factoids” on your intranet. Make comp/ benefits a year round discussion!
- Leadership: Don’t leave this to HR; leaders from top tier to front line must participate in this initiative. If the message comes from all levels of leadership, not just HR, employees are more likely to take notice and absorb the message.
- Alignment: Connect compensation philosophy with organizational performance and goals so employees appreciate the connection they make in their daily work priorities. With alignment, everyone is working toward common goals and great things are more likely to happen!
MSEC helps members with a variety of compensation program planning and practices; contact us today if you need help making the most of yours.