The Role Of Transparent Communication In Wage Negotiations

Highlights:

• Demonstrating how roles evolve due to factors like AI tools can lead to successful negotiations. 

• Transparent wage negotiations for hourly employees benefit from time trackers, ensuring fair compensation based on actual work hours.

• Treating wage negotiations consistently regardless of past compensation helps ensure alignment with role value.

• Leverage Wage Transparency Acts
• Take a Uniform Approach 
• Show How Roles Change and Offer a Compromise
• Implement Clear Wage Structures
• Use Time-trackers
• Center Negotiations Around Performance

Leverage Wage Transparency Acts

Colorado, and any similar states with wage transparency acts, does much of the heavy lifting for HR professionals in ensuring fair and equitable wages and increases. 

At the time of this writing, there are eight states with salary range transparency laws, and another 15 states considering such an act. By virtue of the requirement to post ranges in all postings, we now have heaps of free online access to what other employers are paying in those states for similar positions.

This gives HR professionals the parameters and justifications for the wages we offer, as well as a basis for increases to pay, based on tenure, achieving applicable certifications, or other warranted leaps in pay. It is then easy and clear to demonstrate to our valuable current or prospective team members the dollar figure they will be offered or hope to achieve by earning and maintaining employment. 

If an offer is declined based on a desired salary figure, we can evidence why an amount was justified and offered.

Stacy Jensen, HR Director, InTandem Human Resources, LLC

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Take a Uniform Approach

I have often treated wage negotiations the same, regardless of whether they are hourly or salaried. What someone was previously making is a moot point. 

While past compensation can show some pattern of success, if I am hiring an employee for a role, I have the role valued at a certain amount. If my hiring team thinks the employee can do the role, then I need them to be within my range.
 
I often ask candidates, "What salary would you need in order to make this role make sense for you?" I will share if someone is in range or above directly with the candidate. I try to have the salary discussion early in the process and then closer to the end to make sure that there are no surprises for the candidate or the employer. 

It is possible that ideas change depending on the role's wage from a candidate, so I use the early conversation to make sure we are in range and then later nail down a compensation that will work for both sides upon an offer.

Ben Madden, Owner, HR Action LLC

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Show How Roles Change and Offer a Compromise

Our company has just gone through a renegotiation with our content writers, who had previously been hourly employees but are now paid per article. Simply put, we showed how their role has changed because of AI tools and that we would require unique skills and an increase in output, with an opportunity to earn even more money. 

Our team lead conducted a live feed on how efficiently content can be created nowadays and provided a guide on how to achieve the same results. Employees were then left with a decision to accept the new pay-per-article system, which the majority chose after realizing they could increase output per hour.

Jarir Mallah, Human Resources Manager, Ling App

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Implement Clear Wage Structures

My approach to wage negotiations with hourly employees is rooted in the principles of fairness, transparency, and mutual understanding. One best practice that has proven successful is the implementation of a clear wage structure. This structure is directly tied to specific roles, responsibilities, skill levels, and experience. 

An important aspect of wage negotiations is fostering open dialogue. I strive to create an environment, where employees feel safe and encouraged to voice their concerns or views about their wages. This feedback plays an integral role in our wage negotiation process and helps to maintain trust within the workplace. 

Transparency is at the heart of this process, clearly communicated through justifiable reasonings behind wage rates, the impact of market rates, skills required, and pathways to wage progression.
 

Piotrek Sosnowski, Chief People and Culture Officer, Natu.Care

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Use Time-Trackers 

For hourly employees, one of the biggest issues is understanding how long tasks take to agree on fair and transparent wage negotiations. That is why it has helped to use time-trackers that allow us to monitor how long employees have worked and ensure they are being paid fairly.

Max Wesman, Chief Operating Officer, GoodHire

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Center Negotiations Around Performance

In my experience in managing payroll in our business, I have found that centering wage negotiations around performance can be highly effective. Rather than simply negotiating in terms of the hour, we discuss the quality of work, their contribution to team dynamics, and the responsibilities they undertake. 

One particular instance comes to mind when an employee sought a raise. Instead of an immediate counteroffer, we mapped out clear performance-based objectives for her to achieve. Upon completion, she received her desired raise. This methodology ensures transparency, fostering a sense of fairness and respect between management and staff. It also motivates employees to strive for excellence, knowing their hard work will be rewarded.

Hafsa Unnar, Executive Assistant, On-Site First Aid Training

Author Bio

Brett Farmiloe is the Founder & CEO of Featured.