Companies now face double jeopardy when it comes to employee compensation. On the one hand, employees can freely share their compensation with other employees and on the other hand, they can withhold their current compensation information from future employers. So, what should organizations do to keep engaged employees engaged if employees feel they aren’t being compensated fairly?
First start by reviewing your current compensation practices and total rewards programs. Next, check to see if your current compensation/total rewards program aligns with your organizations mission, vision, and values statement. Does it hold up to your current philosophy? If not, then do a market evaluation check-up to see what bench-marked positions in your industry are currently paying. If your compensation scale aligns with the market, then you are paying your employees fairly and can compete for future talent. If your compensation scale doesn’t align with the market, then begin to take the necessary steps to align with the market and the culture your organization has created or the culture you wish to create.
You can do this with some initial upfront strategic planning and by budgeting for current and future salary expenses/increases. Keep in mind that any adjustments or alignments you make should follow and lend credence to your established policies and procedures. This allows your organizations compensation practices to be viewed as trusted and fair.
When your employees know that the organization is investing in them through a fair compensation/total rewards practice – it helps them to stay engaged with you because they don’t have to worry about unfair compensation matters.