A compensation plan is a summative package that outlines in detail the salaries, benefits, wages, terms and conditions of payments for employees. It entails information regarding commissions, incentives and bonuses that a worker is entitled. In addition, a compensation package might also contain planned salary increments as well as an extension of a contract or years of service. Below are measures that can be implemented to ensure a proper communication of a compensation plan.
Developing a Robust Compensation Plan
Compensation communication can be compromised when there is no clear plan that guides compensation. The compensation plan developed ought to correspond to the business structure and embraced by organization leaders. As the chief H.R officer I would clarify onto my employees about vital issues such as, pay for performance, salary and wage management as well as bonus structures in use by the organization
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An Understanding of Laws
Compensation plans are legally binding agreements as such, I would include compensation laws in the compensation plan to ensure adherence to regulatory frameworks. According to (The lindenberger group, 2017), such laws include Fair labor standards act, civil rights act and the Equal act.
Fair Formulation of Compensation Packages
Based on (Guidespark, 2021) Employees should be able to understand how compensation plans are created. This instills confidence in the workforce that such processes are impartial and fair. As the chief HR officer, I would communicate to the employees about salaries and how bonuses are calculated. This nurtures a motivated and satisfied human resource.
Simplicity
As the chief HR officer, I would deem it mandatory to establish a simple and clear communication of the compensation plan; in effect the trust between myself and the employees would increase, fostering a friendly work environment.
Conclusion
Ultimately any type of communication strategy can be taken up to enhance effective communication of the compensation plan to personnel within a company. The most significant tenets is to ensure that everyone understands and is in agreement with the compensation strategies used.
References
Guidespark. (2021). Effectively Communicate Compensation Changes | GuideSpark. Retrieved 21 May 2021, from www.guidespark.com/blog/4-ways-to-effectively-communicate-compensation-plan-changes/
The LIndenberger group. (2017). 9 Management Tips for Clear Compensation Communication - The Lindenberger Group. Retrieved 21 May 2021, from www.lindenbergergroup.com/9-management-tips-clear-compensation-communication/
