Have you ever played the game called Two Truths and a Lie? You tell people two things that are true about yourself and one thing that's a lie, and people have to guess which one is the lie. It’s a classic “get to know you” ice-breaker to use with employee groups. They learn a little about each other and have some fun in the process. Two truths and a little white lie.
Let's play it.
1)I have two sisters and one brother
2)When I was little I wanted to marry Roy Rogers so I could ride Trigger every day
3)I’ve flown in a helicopter over the Australian outback
This is a game --- but what about in real life? We all tell white lies from time to time, but it’s generally considered okay when it’s well-intentioned.
For example, a CEO may believe it's necessary to only offer a half-truth to employees:
Question: “Are we going to have a lay-off on Friday?”
Answer: “No, we aren’t going to have a lay-off on Friday.”
The truth is there will be a layoff in two weeks --- but not on Friday. The CEO’s answer is technically correct and prevents an employee panic. But the unspoken white lie is that a layoff is coming.
Let’s take a look at some of the white lies Compensation people might feel compelled to use in response to employee questions.
1) “It’s company policy”
The truth is that any company can make exceptions to their own rules. Compensation, and HR in general, have been indoctrinated not to make exceptions because they might create legal problems. In practice, exceptions are made.
2) “Top performers get rewarded!”
Actually, even average performers get rewarded --- sometimes even poor performers especially when they’re in the lower quartile of the salary range. So an employee can be great and get a 3% raise. The employee sitting beside him/her could be a slug and get a 1% raise. What message does that give top performers? Worse yet, top performers don’t get an increase at all regardless of their performance when they’re at the top of the salary range.
3) “We treat everyone equally!”
Not true. We treat everyone equitably. Certain employees are treated better because they are more valuable to the company than others.
4) “Our salaries are competitive in the market”
Salaries are the biggest cost for the company. Therefore salaries are paid at the 50%ile on a lag-lag basis --- low enough to meet quarterly profit goals but just high enough to keep employees working there. Competitive? Just depends on how you define competitive.
5) “The salary for the position depends on experience”
Salaries are almost always negotiable. And they aren’t typically based on ‘experience.’ They’re based on how much a company wants to hire/keep employees. If they are a great asset and bring in great value, companies are willing to pay a higher salary. This will be based on accomplishments and market value, not length of service.
If a company's going to be transparent, consider the “pay truths” that exist. Are policies truthful --- consistent with actual practice? Do they need to change? Will Compensation people feel comfortable explaining the unvarnished truth about how compensation works in the company?
Personally I'm just a little nervous about being totally and completely,100% honest in our effort to be transparent. There's so much to do to correct not only the glaring issues but also the little white lies.
Can it be done? What do you think?
P.S. The answer to my initial statements --- the two truths and a lie? I think I’ll let them lie . . . . so to speak.
Jacque Vilet, President of Vilet International, has over 20 years’ experience in Global Human Resources with major multinationals such as Intel, National Semiconductor and Seagate Technology. She has managed both local/ in-country national and expatriate programs and has been an expatriate twice during her career. Jacque has the following certifications: CCP, GPHR, HCS and SWP as well as a B.S. and M.S in Psychology and an MBA. Jacque has been a speaker in the U.S., Asia and Europe and is a regular contributor to various HR and talent management publications.
My guess is #1.
How about, "We pay above average."
Posted by: E. James (Jim) Brennan | 02/19/2015 at 09:44 PM
You're a smart man Jim --- #1 is correct.
Posted by: Jacque Vilet | 02/20/2015 at 02:23 PM