It is common for employees to want to not only know where they stand within a company, but to also understand what they can do to make improvements and continue to work their way up the internal hierarchy. However, this often creates a dilemma for management teams: Are they completely transparent with salaries?
Different companies will benefit from varied approaches when it comes to keeping current employees—of prospective hires—informed on specific payroll issues. But it is also necessary to create open channels of communication, so employees are at least aware of what they must do to achieve personal career goals.
For example, a contribution piece in Entrepreneur Magazine suggested that companies not only hold annual reviews for workers, but also have informal meetings. That way, team members are never out of the loop when it comes to performance expectations.
"When you provide frequent performance feedback—say, monthly—employees have no reason to be resentful about salaries because you give them ample time and guidance to improve," the article said. "Conversely, when you tell an employee on December 31 that he or she has been doing a bad job since February 1 and, as a result, won't be getting a raise, expect him or her to be rightfully resentful."
If employees learn later down the line what they must do to work their way up within a company, they could become frustrated, and might even decide to leave the organization. No business wants to lose talented workers, which is why an up to date HR software solution can be beneficial. Through HRIS software, employees can access their payroll information and also read company policy on salary and compensation.