In a corporate, we always hear that some topics are rude to discuss, for instance, work pressure, time issues, and others. Above all these, it is restricted to discuss the salary or your pay in the organization. However, money is a part of work and somehow you will talk about it. Whether you are an employee or a worker asking for a raise in your salary. But, talking about an appraisal can be uncomfortable. But it is not impossible to have tactful, respectful, and healthy conversations about your compensation. After keeping some points in mind, it can easily be discussed.
Let’s discuss Why talking about Salary is Uncomfortable?
Many of us feel uncomfortable discussing our compensation openly with a friend or co-worker. Having a discussion with your co-workers or friends in your field can make you feel more comfortable that you are getting appropriate compensation or can ask for the right package. But sometimes it happens, when you get to know that your getting less payment for your colleague will scare you more to ask for an appraisal.
Even all the organization’s employees believe that pay transparency is good for them and as well as for business. But it is found in all the organizations that employees avoid compensation discussion among their co-workers. These discussions are avoided in organizations commonly.
Many companies promote and support pay transparency organizations by making all employee salaries available online for anyone. But almost 47% of organizations still avoid pay transparency of an employee paycheck.
Know how to communicate for salary?
The policy transparency of an organization will make it easy to have pay conversations easily. This main role will be played by the HR team of the organization. They can set the rules for how the organization takes care of these conversations by making sure managers have the resources they need to conduct them.
In how much time you should review your salaries?
In any organization, employees shouldn’t be restricted from asking for raises when they feel appropriate. An organization should have an established schedule for the employee payment appraisal. Most of the companies review their employee’s salary annually to make it appropriate as per the market value, their growth, and development each year. The time may increase or decrease according to the industry you are working for. But it’s considered that the employee anniversary is the right time to adjust their salaries as per the market standard.
How can you determine your pay?
Everyone’s Payment is different which is based on skills, competency, performance, and organization. In most organizations, the pay is based on skills that will provide a career path based on technical skills which are judged by assessments and certifications rather than moving through the management ladder. Another is competency-based pay in which pay is based on skills, knowledge, experience rather than job title or seniority. The last one is performance-based pay in this compensation is determined based on your work performance individually or in the team.
How can you prepare employees?
If HR wants to have pay discussions with the managers and employees they need to make sure that they have the proper tools and skills to have these conversations. Managers can have discussions with their team or other employees after informing HR about it. They can also include HR in the pay discussion with the employees. But while discussing such things HR needs to tell the managers that they need to keep some talking points in mind.
Some of the talking points for employees:
Whether you are discussing negotiating salary, negotiating raises, or discussing bonuses. Employees should be clear about how much raise they should get and why?
Tips to Negotiating Salary:
- Know Your Worth
- Give a Range
- Take Time to Know More
- Bonus: Ask Questions
Tips to Negotiating Raises:
- Once Again, Know Your Worth
- Dive In Right Away
- Choose Timing Carefully
- Be Specific
- Prepare a Response
Some of the talking points for managers:
Managers of any organization should know how to converse about money matters. The pointers managers should have while having salary discussion just like their employees should.
- Give Context
- Ask Questions
- Respect Your Employees
In every organization, some employees are scared of having pay conversations. Hope with the help of the above-mentioned tips you can easily have a conversation with your team. Whenever you are going to have salary discussions, you should be prepared for it. You should have the confidence and need to hold a constructive and respectful conversation, whatever the result is.