Six ways to equip line managers to handle difficult pay and bonus conversations
1. Talk about performance and bonuses or pay separately
Of course, compensation should always be linked to performance. However, discussing the two together can often lead to the employee focusing just on the conversation about pay.
To avoid this, managers should discuss performance with the employee prior to any discussion about pay and bonuses. This ensures that both conversations are heard clearly by the employee so they fully understand how the two are linked.
Discussing performance regularly with employees can have numerous benefits. Informing the employee about their performance prior to any decision with regards to pay and bonuses allows the employee time to improve their performance. This also allows managers to inform the employee of their expectations with regards to performance early on.
2. Provide context
Employees are often disappointed by their raise or bonus because they aren’t informed as to the reasons behind the decision. It’s therefore important the line manager can communicate as much information to the employee as possible.
The decision behind pay and bonus calculation could have been affected by overall company performance, departmental performance, the state of the economy or any other factor affecting the financial situation the company finds itself in.
Give your line managers the tools to be as open and honest as possible with employees. If possible, detail the process behind the decision making with regards to pay and compensation. It could be that the employee has simply underperformed. In this case, give the manager any figures that support the decision.
3. Join the line manager in the discussion
Often line managers aren’t 100 per cent involved in deciding pay and bonuses. When they are involved, there’s usually at least one or two other, more senior employees who are.
Allowing other people who were involved in the decision making to sit in on the conversation with the line manager can help everyone involved. This will help the line manager in informing the employee about why the decision was made with regards to their pay and compensation. Senior staff can also help the employee if they have any questions that the line manager can’t answer. That said, the line manager shouldn’t be undermined. Let them lead the conversation and step in where necessary.
4. Allow the line manager to choose the right time to talk
Consider not just the needs of the employee but also those of the line manager. If your line manager is under an increased workload or any particular stress, allow them to find the right time to speak to the employee about their pay and compensation.
If it’s a bad time for either the employee or line manager, give it some time. In order to avoid friction or an unwanted reaction, make sure the conversation takes place at a time where both parties can focus clearly and have a frank and open conversation.
5. Empowerment
Empower your line managers by allowing them to not only choose the right time to speak to the employee, but to choose the right way to speak to them and what to speak about.
Maybe your line manager wants to set follow up meetings where necessary. Ultimately, your line manager is the person likely to have the best relationship with the employee and therefore they need to be trusted to know the best way to handle difficult conversations.
6. Be ready for a reaction
If an employee gets upset or reacts badly, be prepared to address their concerns in a way that considers the best interests of all parties. Allow the line manager to discuss with his seniors a solution for an employee who feels aggrieved. Giving the line manager this option allows them to communicate to the employee that they’ll try to find a solution.
Whatever the reaction, make sure that it’s made clear that the employee is valued by the company and that an amicable solution is desired by all parties.
This article was provided by Caboodle.
In partnership with Caboodle
Caboodle is one of the UK's leading employee benefits companies.
