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TOOLS FOR SUCCESSFUL COMPENSATION IMPLEMENTATION

expectations, rumors, and tools to manage them

The implementation of a new compensation program raises possibly more expectations than any other type of change other than losing a job –from a suspicion that the program is a thinly veiled attempt to downsize to the hope that big raises are coming as the organization finally values performance.

Expectations are individual, and because everyone expects something different, it is crucial that everyone hears the same message in the same way. In order to convey a fair and equitable compensation program, employees need to have enough information to decide for themselves whether they are being paid fairly. This does not mean that employees need to know everything about the decision-making process, any more than they would know all the factors that went into deciding which version of Windows will be on their desktops. However, there are certain things that employees must know:

  • How are the pay opportunities for their job established? If you have a job evaluation program, what does it measure? If market data is used, where did it come from?
  • What are the realistic pay opportunities for the employee as an individual? How is pay determined? How do performance, seniority, loyalty and other factors enter into the decision?
  • What will happen to the employee’s pay as a result of the implementation?

For more than twenty-five years Merces has been assisting clients with the implementation of compensation programs. We’ve developed presentations and materials that effectively convey what employees at various levels of the organization need to know. These include program brochures with FAQs, descriptive materials such as plan documents, and presentations that can be made by your staff or Merces staff to your employees. Merces also works with your organization to present information to individual employees on how the new program will affect them, and conducts training sessions with executives, management and supervisory staff on the best methods of communicating the programs.

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