Communicating wage and salary information

Effective communication about compensation is key to ensuring employees are aware of the value of their total compensation. A compensation communication strategy should be created in alignment with the organization’s HR strategy and be supported by senior management.

Aside from knowing their own salary, employees should also be advised of the following:

  • The position of their salary in the salary range for their job grade/level
  • Process for progressing through the range over time (seniority and/or performance)
  • The procedures for annual salary adjustments

Communicating total compensation information through formats such as statements, booklets, newsletters, and memos provides a consistent message and allows employees to refer to the material later. Presenting compensation information through meetings, workshops, and ongoing support allows interaction to immediately address individual questions and concerns.

External communication regarding an organization’s compensation is also important to attract prospective employees. For example, noting in your job postings that your organization aims to pay competitively and reviews compensation on an annual basis can be helpful for job seekers.

Additionally, practicing pay transparency by disclosing the salary or salary range for a role directly in your job posting creates a more equitable recruitment process. It’s a mutually beneficial practice for both employers and employees – and one that may be required by job boards and/or your organization’s local legislation.

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