When a compensation decision is ready to be announced, aim for effective messaging that includes these components: Does the company have bargaining units wherein changes have to be carefully reviewed against collective bargaining agreements and/or negotiated prior to implementation?.Where there are unclear laws, are there related court rulings that should be reviewed?.Does the company have an executive team, board of governors or regulatory client that might need to approve the decision?.HR professionals also should consider what other oversight might affect compensation within their specific organization. Uniformed Services Employment and Reemployment Rights Act.Executive Order 11246 (prohibiting employment discrimination by federal contractors).Equal Pay Act and Lilly Ledbetter Fair Pay Act.Many compensation-related laws need to be adhered to and should be considered early on in the planning stages of compensation restructuring. At a minimum, federal, state and industry regulations should be reviewed for any constraints or guidance. When making decisions on compensation changes, keep regulatory governance at the forefront. Have I identified lessons learned from others who have implemented similar projects?.Are there surveys or other written resources that will highlight best practices?.
#SAMPLE COMMUNICATION TO EMPLOYEES ABOUT CHANGE PROFESSIONAL#
Do I have access to resources from professional organizations such as template forms, sample procedures or communication drafts?.Are there people within the organization who can share their experiences or who have access to others’ best practices (e.g., supervisor, co-workers, legal support)?.How can I get information from other organizations that have implemented a similar change?.Ask the following questions before proceeding with any significant compensation decision: Blindly reinventing the wheel is neither wise nor cost-effective. To avoid unwelcome surprises, consider these steps when rolling out compensation projects or adjustments:ĭon’t venture into pay modifications without considering what others have done. Regrettably, many organizations forget to consider the far-reaching effects of those decisions during the planning and communication phases. Require many employees to be reclassified from exempt to nonexempt status. Department of Labor's soon-to-be-released final rule on overtime pay, which will limit the Fair Labor Standards Act's (FLSA's) white-collar exemptions and Shortly, many employers will be implementing the U.S. Organizations often make compensation changes driven by business necessity-for instance, reducing annual merit pay raises from the prior year’s level, launching new incentive pay programs (and making variable pay a larger portion of total compensation), or revising the salary structure with adjusted pay ranges or bands.
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