Taking the Mask Off Compensation

Ornate masks isolated on the white background

Coming Clean on Compensation outlines the benefits of being transparent around your organization’s compensation policy.

Sharon Vanderwerff of Mercer LLC is quoted as saying, “If you have a good story to tell, if you have your structure and your philosophy [about how workers will be compensated] and it’s positive, why wouldn’t you share that?”

I agree.  And, here are just three reasons why.


1.    There is No Mystery Left

The cat was out of the bag years ago.  Between sites like Salary.com and the new age of sharing everything, there is no mystery anymore about who makes what inside your organization and what others are making elsewhere.

2.    Manage the Narrative

The ‘black box’ approach to compensation will always lead to negative perceptions about your compensation strategy.  The only way you can ensure there is an accurate understanding of your compensation practices is for you to be transparent and make information accessible.

3.    A Moving Target is Not Motivating

While compensation is not the only way to motivate employees, it is certainly an important way.  An employee needs to be able to make a clear connection between their performance and rewards for it to have any motivational impact.

Your employees already think they know how your compensation plan works.   Is their perception accurate?

Would love to hear your comments about how transparent your organization is…

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