It's Gonna Take Courage This Year

When it comes to merit increases and bonuses, how many of us secretly wish that, in December, we enjoy the kind of excitement that was all over the news this week? 

Admit it. You know you feel like you've been trying to work for months -- if not years  -- in a dark, damp place where no one can see how hard you are trying. You get good food and regular shipments of treats, but really, truly, you want to emerge into the sunshine met by thunderous applause for toughing it out. It's been a long time coming.

When I have proposed to my Bay Area colleagues in the last few weeks that it is going to take courage to communicate about compensation this year, the discussion flows naturally.  From the Silicon Valley Compensation Association (multinational, talent-centered corporate cultures) to the Northern California Human Resources Association (small to mid-sized companies, many with one-person HR functions), most everyone will admit that they need to face facts.  We've asked and asked and asked our employees to give of themselves but there will be no bright sunshine or thunderous applause this year.

Is the cup half empty? I'm not suggesting that all. I think the signs of recovery are starting to be apparent to most everyone. In past, recessions opportunities start to ramp up from here, although it's clear that things will move slowly this time.

My main concern is that:

1. This year, we tell ourselves the truth about the time and thought we should put into compensation communications design. We should be intentional about building trust and not let a platitude get anywhere near our communications. We've been in it together long enough during these tough times. It time to talk to each other straightforwardly. 
2. Take the time to walk in our employees' shoes before we decide we've done a good job at our communications. Research shows that right now, employees want security, stability and opportunity (Towers Watson 2010 Global Talent Management & Rewards Study). We wish we could offer them these things. It would be great to be that good guy once again. Instead of trying to lull people into satisfaction with current programs -- the approach in the old days -- we should speak truthfully about our current experience. In reality there's little security, stability and opportunity to go around yet. Have the courage to be clear about reality and talk it over with employees, including our disappointments and hopes.
3. Give managers all the support we can muster in spite of our small budgets and competing priorities. Our managers will be talking to young professionals whose spouses have been out of work for over a year. To mid-career diabetics whose out-of-pocket medical costs keep accelerating even when their income does not. To mothers and fathers who can't give their children the educational options for which they've been saving for years. To 55-year-olds who are still raiding their retirement nest egg. 

Earlier this week, Ann Bares talked in Compensation Force about the delicate balancing act that managers face because many companies ask them to sort out what it means to be fair (which often requires patterns of cordiality to be broken) vs. what it means to be nice. This year, it's likely that we will once again ask managers to explain that we have been fair about our pay decisions although many employees will still not receive an increase given the current business environment.  At the same time, managers will want to show as much kindness as possible to employees whose families are having tough times. These competing demands will place immense pressure on managers because fairness (in the name of the company) and niceness (in respect for the individual) are often mutually exclusive, as Ann pointed out. We can try to balance them out, but we can't resolve the inherent contradiction. With this level of pressure and emotional confusion looming, managers need our help.

It's going to take courage on our part to hammer this home to our executives. To get the time on the calendar that we need to do a good job. To help them get down "among the people" instead of riding in on a white horse. (At a conference today, I heard a number of stories of six-figure executives who still can't imagine their employees are have financial challenges in spite of three years of frozen EMPLOYEE salaries.)

Let's resolve to show real courage in our compensation communications this year. We're in this together with every striving employee and diffident executive. In spite of the complexity of all of this, we can handle it . . .  and this investment will pay off.

Margaret O'Hanlon is founder and principal of re:Think Consulting.  She has decades of experience teaming up with clients to ensure great Human Resource ideas deliver valuable business results.  Margaret brings deep expertise in total rewards communication to the dialog at the Café; before founding re:Think Consulting, she was a Principal in Total Rewards Communications with Towers Perrin.  Margaret earned her M.S. and Ed.S. in Instructional Technology at Indiana University.  Creative writing is one of her outside passions, along with Masters Swimming.