The first questions clients ask us about communicating a compensation program are: "What are other organizations doing?" and "How transparent should we be?" Both are good questions. However, when it comes to determining a comfortable level of transparency in communicating compensation, it is important to take into account an organization's compensation philosophy, and to communicate this philosophy in a manner consistent with its employee value proposition (EVP) and company culture.
Our research demonstrates that high-performing companies are more likely to differentiate pay for high performers, keep pay practices consistent with the pay philosophy, and effectively communicate their pay plan to managers and employees. Download this article for a look at four actions that organizations can take to effectively communicate pay-for-performance decisions without putting employee engagement and their EVP at risk.