One of the most important elements of employee compensation is communication.
Explaining what and how you pay your employees is critical to ensuring that your employees feel that they are compensated fairly for the work they do. It also helps them focus on achieving and exceeding your organization’s performance goals.
Employees who feel that they are being paid unfairly can be a huge distraction. Employees who do not understand how their bonus works may not even be focused on the right priorities. Effective communication is a critical component of an effective compensation program.