Employees are reluctant to talk about pay or salary openly with colleagues. However, when staff start talking about pay, often comparisons will be made and employees may end up feeling less valued. Unfortunately, this can also lead to problems with morale, productivity and engagement, while potentially causing complaints within your workplace. So how do you handle it?
Communication is key
One of the first steps is to address the reason why employees feel the need to discuss their pay. Is it because they feel underpaid and undervalued, or simply because they do not understand the reason why their wage is set at the level it is?
If this is the case, you can handle this by increasing the transparency around salaries and wages across your business. You could do this by:
- increasing communication with the particular employee as to why they are at their pay level
- advising the employee what they can do to achieve a pay rise
- rewarding and recognising employees with alternative means such as time off or other non-monetary benefits
- reiterate the value placed on the employee and their work
Positive steps like this will make the employee feel they are being listened to, they are valued, and that the company is keen to engage with them constructively.
Managing an internal complaint
When internal complaints arise due to a discussion about salaries between staff members, it should be dealt with immediately.
Managers and supervisors should be prepared to deal with complaints effectively and to take active steps to solve problems as and when they become apparent. While these can be difficult conversations to have, it is important that employees feel they are being listened to and are encouraged to bring forward their concerns.
Your business should have a good complaint process that has established guidelines for employees to follow.
Contractual clauses
Some employers used to place a contractual ban on employees discussing their pay by including a clause in their employee handbook to prohibit this. These clauses are no longer permitted for contracts entered into or varied after December 7, 2022. Employees now have the right to discuss their pay and other terms of employment with colleagues.
As Australia’s leading workplace relations specialist, we can make sure you are aware of best practice policies or procedures for your business needs. Call Peninsula today on 1300 651 415.