How to Have the Compensation Conversation? Handling the Compensation Curve Ball

Compensation Curveball

Join us for our complimentary session, Compensation Best Practices Every Leader Should Know, on December 14th! Click Here To Register

Handling the Compensation Curve Ball

How often, as a leader, do you get thrown one of these curveballs? Do these often come at the end of a check-in conversation with an employee?

  • Why did we just bring in a new team member higher in pay than I am?
  • What is the salary range for the job above me?
  •  What can I do to get an increase in my pay?
  • What is the salary range for my job, and how can I make more?
  • I did my research, and my job is being posted in other companies for more money?

How many times have you had to “punt” your best guess answer because you felt you had to answer at the moment? Do you think your employee left the conversation excited and motivated?

As a leader, how many times have you had the same questions about your own pay?

Think back to your own conversations throughout your career.

  • Remember how uncertain you were about when and how to bring up the conversation?
  • Remember when you finally had the courage to ask?
  • What conversations went well?

Was there a conversation where you left your manager’s office and thought, “what just happened?” Perhaps you walked away a bit deflated and thought, “I am never asking about my pay again.”

“I am never asking about my pay again.”

Let’s face it. This is not easy for the employee or the manager. After 25 years in Human Resources, I have heard and coached both sides, I have seen how we punt and misinterpret questions and answers, as well as intentions.  Many times, both people leave conversations more frustrated and not understanding the root of the question. Most often, it is not about the actual money at all.

It doesn’t have to be this way. It is no one’s fault. Each leader is busy trying to reach their KPIs OR their own goals…. however, they are being measured in their business. Let’s face it. I am pretty sure there isn’t a year-end celebration for managers that have had the most impactful and engaging compensation and performance discussions! But maybe there should be.

According to the recent Gallup Study: It takes a pay increase of 20% to lure employees away from managers that engage them.

Bottom Line:

Great managers reduce turnover more effectively than any other role in your organization.

So, invest in your managers!

At MorganHR, we have listened to clients and our SimplyMerit customers. The questions managers have about compensation are often the same. They range from understanding compensation in their organization to being equipped to have the best conversations with their employees. After we dig a bit deeper, the reasons behind the questions are also the same, people want to feel valued, engaged, have the transparency and feedback to make an impact. They want to feel fulfilled at work and in their personal lives.

How can we set our leaders up for success?

At MorganHR, our Auxin Group Development program has designed a series of sessions to help leaders have engaging compensation conversations. Our goal is to provide a safe place for leaders to learn, collaborate, and practice. We want leaders to be able to answer questions and have the confidence to invite conversations!

All of our workshops are 60 minutes while keeping the busy leader in mind!

Join us for our complimentary session, What Your Employee Really Wants To Know, on December 14th! Click Here To Register

About the Author: Stacy Fenner

Stacy Fenner is a Senior Consultant and Program Director for MorganHR. Over the course of her 25 years of human resources experience she developed a passion for inspiring and coaching others to achieve results. Stacy’s multiple certifications—including InsideOut Coaching, Korn Ferry Leadership Architect, and many more—have given her a wealth of perspectives to draw from in designing effective customer solutions. Her expertise lies in the areas of HR Consulting, Employee Engagement, Culture, Coaching, and Leadership Development.