Managing employees salary expectations is very essential to building a strong team. We all expect to achieve better things from our careers and your employees are no different. They want career progression opportunities and space to succeed.
But their commitment and happiness are dependent on so much more. They care about money and have certain expectations when it comes to salary. More so, they have this assumption that everyone automatically gets a salary increase each year.
As you know salary-related issues can be emotive. If the company is not offering a salary increase, this can certainly demotivate your staff and affect performance. You can also lose your best employees if they feel they are not being paid fairly. And as a manager, you don’t need any of that.
You need a happy and motivated group of employees. And that means you have to offer a salary package that makes them feel it is fair, but cost the company less. So it is a tricky balance to make, keeping your staff happy and defending the company salary policy.
Also read: How To Say Goodbye To Bad Management
What is the Better Way of Managing Employees Salary Expectations?
1. Managers have to communicate better – We are always reluctant to share the full reward and compensation information with our employees. Even when we know that the company cannot fulfill the employees’ salary expectations.
It is this lack of information sharing that leads to the disintegration of the relationship between managers and our employees. Also, it is one of the reasons that push our staff to quit the company mentally, but stay on the payroll.
2. Creating an environment of transparency – We have to create an environment of transparency. That encourages direct conversation related to salaries and overall compensation. And there is no better moment to discover your employee’s expectations than during a one-on-one conversation.
So you need to use that opportunity to explain to your employees how salary increases are structured. Also, spell out clearly the real reasons behind the salary decisions. You need to clarify whether those decisions are made due to industry standards or economic conditions such as inflation.
Illustrate the difference between individual and company performance. You want your staff to feel connected to key business decisions. Not just to see themselves as workers.
3. Employees setting the agenda – When meeting with your employees, ensure that they set the agenda. Let them drive the conversation by starting on the topic they want you to talk about.
Be prepared to answer questions similar to those below;
1. What do you expect me to do in return for the salary increase?
2. Why is my salary increase based on my performance rather than the time I put in on the job?
3. Why was I given this percentage rather than the other – in other words why this specific amount and not the other?
4. Am I below or above the company average percentage increase?
5. What is the maximum percentage increase could I hope for this time around?
The answers to similar questions above will form good feedback from you to employees. From that, they will know where they stand, how they got where they are, and how to move forward from there.
Always come to the meeting with a few thoughtful questions such as;
1. What is more, do you want to know that it can make you more satisfied with this job, and why?
2. What else can I be doing to help you grow and advance in your career?
3. How are you feeling about the company’s salary guidelines/policy? What makes you say that?
4. I’m interested in feedback on how I can improve on during our conversation?
Your employees may have the same expectations when it comes to salary, but they don’t share similar values. Questions similar to those above can help to determine what is most important to the individual employee. In addition, you can discover issues early before they become full-blown problems.
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