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    Communicating Pay Changes
    David Creelman
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    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Pay is increasingly becoming a communications ´rudder´ that helps direct employees into the role the organization needs them to play in making it a success, and organizations are basing pay and rewards on the speed and quality of the transition of the workforce to this new point.<br />
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    How many times have you heard people say, "You get what you pay for"? Pay is increasingly becoming a communications ´rudder´ that helps direct employees into the role the organization needs them to play in making it a success, and organizations are basing pay and rewards on the speed and quality of the transition of the workforce to this new point. Communications matters especially when you are trying to create a performance culture and leading the change by really paying for performance.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">But <em>all</em> organizations say they expend considerable time communicating about pay. Some do it much better than others do but all do it in some way. Why is it that communications about pay becomes an issue at this time? It´s because new emphasis on communications is necessary--pay and rewards are <em>changing</em> from what they were in the past. These changes are substantial and have major implications that employees need to understand as more organizations realize the value from paying for performance.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Here are some of the trends in pay management that will need extra communications attention:<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">1.      <strong><em>True Pay-For-Performance</em>:</strong> A meaningful number of organizations have moved to finally linking pay adjustments to their performance management system. This was very slow in coming but now is becoming more of a reality. This is a significant change for managers and employees and getting the new message through is critically important.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">2.      <strong><em>More Variable Pay Deeper in the Organization</em>:</strong> Surveys constantly show that more and more organizations are adding variable pay that does not fold into base pay to non-management employees. This is a significant change and employees need to trust the measures and goals used and understand this is just not a strategy to ´save money´ for the organization.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">3.      <strong><em>Cascading Goals for Pay</em>:</strong> Organizations are moving to strategies to align the goals of the most senior people with everyone in the organization. This ´cascading goals´ concept requires that employees understand how they add value to measures and goals that represent a longer line-of-sight from those they are most accustomed to.<em> </em><o:p></o:p></span></p>
    <p><strong><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Ideas for A-1 Communications</span></strong><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Here are some solutions to consider when pay is changing:<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">1.      <strong><em>Employees Design Communications</em>:</strong> A great way to communicate is to get the employees involved in picking how to do it and then helping get the message through. Employee´s best accept what they are involved in designing. And they are likely to be better equipped to understand what other employees need to know about new pay directions. Having them participate in getting the message through is really important. The more involvement, the better as it relates to pay communications.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">2.      <strong><em>Add Recognition and Celebration</em>:</strong> Tying pay changes to new recognition and celebration plans always helps. When goals are met and employees help, do something to acknowledge the success. If pay is changing, providing some small recognition of the acceptance of change is very important. And employees can help here too. Employees develop some of the very best recognition and celebration programs. So linking employee involvement in communications design and recognition and celebration makes perfect sense.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">3.      <strong><em>Managers Make Communications ´Fun´</em>:</strong> Pay is usually very boring--but counts importantly to employees. Managers need to make the communications process more ´fun´ than ´bore.´ Adding cartoons to communications and announcements can help this communication strategy. This is a close balance and must be programmed carefully. It is the small things that are important to getting attention to new messages.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">4.      <strong><em>Use Tools You´ve Not Used Before</em>:</strong> Use all the communications tools you have to communicate the new pay messages. If you have a web site for employees, use it. Provide e-mail question and answers and also have a pay ´hotline´ that gives employees access to understanding about pay. Let employees who are involved in bringing the message through participate in question and answer sessions. But the most important thing is to keep up the communications for the long term. Everyone does a good job for a few months, but the organizations with most success are in the communication process for years.<o:p></o:p></span></p>
    <p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Try a new solution each month or so. If that does not work, try something else. Employee involvement is in our mind one of the most unused ´secrets´ about communicating about pay. Employees will have the best ideas about how to get the messages through in an understandable fashion. Not all the messages about pay are positive these days. But trust will be built around pay matters in the next year or so. You organization should become part of the solution.<o:p></o:p></span></p>
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