As we approach the end of a very long and very tumultuous year, many employers are bracing for the inevitable: questions from staff about compensation in 2021. While some companies have actually seen huge positive shifts in their businesses since March, others have experienced significant difficulty and uncertainty, which will likely impact annual compensations plans.
Regardless of the state of your business, employees are curious. Many are wondering if they’ll get a raise or at least a cost of living increase. Or will they perhaps have to tolerate pay cuts in order to bolster the company’s position heading into the new year?
Now more than ever, questions about compensation must be handled thoughtfully and proactively to avoid causing additional angst, which could kick off a mass exodus or fuel fears about the company’s very survival.
If you’re not in a fiscal position to offer compensation increases this year, here are five tips to help ease those tough conversations with your employees.
1. Be Proactive in Setting the Tone