How to Discuss Pay With Your Employees

Simply excellent article by Amy Gallo, Contributing Editor at Harvard Business Review:

Do:

  • Make clear how much you value the employee — don’t let the bonus or raise speak for itself
  • Explain how the decision was made so the employee understands you’re being fair
  • Rehearse what you’re going to say and how you’re going to respond to any complaints

Don’t:

  • Wait until the end of the year to talk about compensation­­ — it should be an ongoing conversation
  • Deliver compensation news at the end of a performance review — space the two conversations out
  • Be surprised if the employee gets upset — even if you think you’re delivering good news, it might be less than she expected