Help your managers answer employee questions about pay
How confident are your front-line managers in having the talk? Not THE talk that every parent of a preteen dreads, but the talk when managers discuss pay with employees.
While pay transparency is a trend, companies may not be overly comfortable sharing every last detail about compensation.
Often, managers are the first to get money questions from employees, such as: “Why does so-and-so make more than me?” or “Why is everyone’s raise higher than mine?”
When faced with these questions (often on the spot), managers should have a good working knowledge of what they can and cannot say to employees.
Three tips to guide managers when talking to employees about pay:
- Focus on the factors that set pay. Begin by teaching managers how pay is determined. Explain all the factors that are considered before wages and salaries are set, including incentives and bonus programs. Having a good base knowledge can help managers focus on the facts when explaining pay differences to employees.
- Explain how pay ranges work. Next, teach managers how pay ranges work and how employees can move up within a certain type of job, or, perhaps, learn new skills to move into a higher pay range that may offer new challenges.
- Coach managers on how to coach employees. Some managers have better coaching skills than others. For those that may need some guidance, HR can help by coaching managers on how to coach employees, especially when talking about pay. Because employees can sometimes get frustrated, especially if they feel stuck (whether in a job or a pay range), having managers who can coach employees through a tough spot may help retain employees and keep departments running smoothly.
While these tips can help managers in many circumstances, conversations can escalate and become ugly. In these situations, HR should be looped in immediately.
If employees become belligerent or make threats over their pay frustrations, or if employees make a discrimination claim (e.g., claiming they get paid less because they’re a certain race, age, or gender), these types of situations should funnel up directly to HR to handle — the sooner the better.
Key to remember
HR should provide guidance to front-line managers about how to talk to employees about pay and explain that sometimes HR might need to get involved if the conversations go south.