employee faq

Talking With Employees About Pay — the Easy Way

Think about it: If you weren’t the compensation extraordinaire you are, you’d probably want some expert help to understand why you’re getting paid what you’re getting paid, right?

But you’re a true seasoned comp pro, and you know the semantics of pay like the back of your hand. (You rockstar, you!)

It’s talking about it with others — like, really being able to explain it — that gets tricky sometimes.

Especially if you’re not prepared for — or you don’t have time to prepare for — The Chat.

That’s where I come in, though!

I may not be Gordon Ramsey, but I’m here to help.

Here to help you simplify the pay conversations you have with employees — because they don’t have to be time-consuming or difficult. (And don’t worry. I won’t yell at you like Gordon Ramsey.)

In order to truly take some work off your plate, we at Payfactors created a special cheat sheet that outlines some common comp Qs you’ll hear from employees. Plus, it explains how to best (and most easily!) answer them.

Let’s talk about one of those Qs now, shall we?

And, trust me — this one’s a biggy. 

Here we go…

The question at hand: How is my pay determined?

Ah, the age-old question.

So, let’s unpack how you’d approach this. 

First things first: the tools you need to succeed.

Make sure to bring with you:

  • Relevant market data on the employee’s position.
  • Info on how the employee’s job stacks against current market trends.
  • An explanation of what percentile they’re being paid at — and why.

Got it all?

You’re ready…to…rock. 🤘

But, not so fast! You may be missing one thing. 

Layman’s terms.

Yeah, you read that right.

The key to explaining pay to employees is using language they understand.

That means no comp jargon allowed!

So, use ✨everyday terms ✨ and all the other handy equipment you brought with you to make your case about the employee’s pay.

Tell them, “We gather data from other companies to see what they’re paying employees in your role or in this area. Then we pay in the middle of the ranges we see — like most employers do!”

But let’s dial it back for a sec. 

If your company’s comp info is public, a good way to get ahead of the whole “How is my pay determined?” spiel is sharing where employees can find this intel.

This might mean referring them to your company’s intranet, their offer letter, or wherever your company keeps this data.

Want more tips and tricks?

I hope this quick explanation provided some insight into how to best approach this extremely common employee comp Q!

But — did I mention? — we’ve got more where this came from.

Download our quick and easy cheat sheet for even more step-by-step explanations on how to answer employees’ questions on pay!

Posted in