Communicating Compensation and Benefits Policy
Pay and bonuses are the things that get talked about most-yet are also the things about which we are asked to keep quiet. If a total compensation policy is solid, why would you not want to be honest and tell your employees and customers exactly what you are doing?
Here are your final questions: How much should managers communicate about the total compensation program of a company? And, who should be included in that discussion? Clients? Shareholders? What do you think
Total compensation programs generally include five basic components which include salary or direct compensation, short and long-term incentives; health and welfare benefits; deferred compensation (401k,etc) and employee firnge benefits (vacation, sick pay, bonuses, etc). While these topics in general are discussed by managers and employers as a whole, salaries, while in everybody's thoughts, are rarely discussed openly. No, managers should not broadcast employee's salaries; however, the more and better communication about compensation can boost employees' satisfaction with their pay which in turn, leads to a stronger committment to the organization (Krattenmaker, 2002).
When it comes to the discussion of pay, misinformation usually comes with it. This misinformation is generally more often than not, causes damage rather than the truth. There are rumors about how upper management compensation is determined and how ...
This solution discusses why you would communicate a total compensation package and to whom you would communicate it to (employees and/or clients and stockholders). Solution is approximately 400 words with two citations.