Communicating to employees is essential in human resources. Whether you are just revising job descriptions or designing an entirely new compensation program, employees will often jump to the conclusion that you are really evaluating their performance, decreasing their salaries, or eliminating their jobs. Consequently, it is very important that you let employees know what is going on at various stages of the project, and that you communicate the end result.

How much you communicate is of course a decision that only you can make. How you said it, however, should be done carefully to help avoid mistrust and misinformation. Many years ago, a prospective client wanted to develop a new compensation system. Unfortunately, the CEO, in his zest to be forthcoming, began a letter to all employees with the following sentence:

"As you know, you have been inequitably compensated for some time..."

Needless to say, that company was advised to put the new compensation system on hold for a while until the damage could be repaired.

At QualComp, we work with you to make sure that you have a plan for communicating your compensation programs. We can either review or entirely write appropriate materials for you, depending on your internal resources. However, we always recommend that you review any employee communication materials with your legal counsel.