ten cs for effective communication annual compensation reviews

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Page 1: Ten cs for effective communication annual compensation reviews

REFLECTIONS

Ten C’s for Communicating ACRs

A clear strategy on

how to communicate

about salary hikes is a never ending debate. However there are effective

tips evolved over the years. Mangers must recognize their role and the value that they add when communicatingannual

compensation packages to employees.

Confidentiality

Schedule a private meeting with the

employee to discuss/inform their pay. Never

mention about others salary during these

meetings.

Circumstance

You will have to providethe context for the

employee’s pay raise. For example, our

company’s philosophy is to award pay

increases based on merit and contribution.

Contribution

Inform the employee why they are receiving

a pay increase. Be as specific as you can

be about the contributions they made during

the year.

Compensation

Intimate the employee what their new

annual salary is using the guidelines

provided to you.

Confidence

Take the effort to express faith that the

employee will continue to contribute and

that you will value all of their future

contributions.

Commend

Thank the employee for their work and

commitment to our company.

Concern

Listen to the genuine issues raised by the

employees Inform them that the request will

be taken up as appropriate.

Capture

Take notes of the key learning’s during

these discussions. These are valuable tips

that can be reused in the coming years.

Conclude

It is your primary responsibility to close the

feedback loop with the concerned

employee.