Compensation Guide: A Manual on Compensation Practice and Theory
Communicating Compensation
Compensation will only have the desired impact on attitude and behaviour when employees understand the pay and the benefit options that apply to them, and the associated policies and procedures. Well thought out compensation communication increases morale and employee satisfaction with their organization and decreases turnover. Chapter 10 emphasizes the importance of conveying information to employees in a transparent and well-explained manner. It outlines useful modes of communication along with feedback mechanisms to ensure that information is well understood, as well as pointing out some of the barriers to effective communication on compensation.