Money ... Always a touchy subject. And no, you're really not the only one who thinks so. I can confirm that to you. As a manager, you often find yourself caught between your employees and the HR department; you want your employees to be happy are happy, but you also know that there are often strict rules attached to salaries. You can't just give everyone raises. Still, the question comes up with every manager or executive at some point. At some point, an employee shows up at your door asking for a salary increase. Saying "no" is then an easy way to get out of it. Managers should also be prepared to talk about this. But how do you best handle this?
Did you know that, on average, 48% of all workers feel that his/her salary is not a fair wage? And that men in almost every age group (except 15-20 years) still earn more than women? But that women are still more often satisfied with their salaries than men? This is all revealed in the National Salary Survey 2017 by Intermediair and Neyenrode Business University.
Salary is a sensitive subject. After all, you are discussing the value of the employee in question. That's not nothing... There are feelings involved in this subject. Emotions can run high, which is why it's very important to be able to properly justify why this person is getting a certain salary. Then again, employees always draw their own conclusions at this salary. In fact, 35% of people who are paid above average have no idea about this. In fact, many of them think they are paid below average. But why is it that they think this?
That has everything to do with communication. The way it is brought. People need context. Chances are that HR has given you, the manager, a list of figures that you have to communicate to your employees. The salary of your employees is based on these figures. But do you understand these figures? Can you substantiate them well? And how are you going to communicate them? That is point one.
If done right, your employees' salaries are based on your organization's philosophy, core values and goals. The core values actually set the "bar" within your company: these are the things you want to reward and value. There are often questions about this, too. After all, why is the bonus amount x? How much will my salary increase next year? What is my salary increase based on? It's important to be able to answer these questions. Keeping in mind, of course, the core values of the organization. Through these core values, all managers within the organization know what needs to be communicated and there will be a clear consistency across the entire organization. In this way, your employees will become your ambassadors.
Finally, it is important to remember: salary is not always everything. For many people, organizational culture is at least as important. So highlight these points as well! You don't just get salary X, but also a chance to grow, develop yourself, flexible working hours, training and/or a super cool Friday afternoon drink every week.
And one last tip from us: When you want to motivate your employees, let them know how much they are worth to your organization. For example, highlight why that one project was so important, or why their particular talent always adds value for the customer. Appreciation can do a lot to someone.
Good luck!