Transparent remuneration policy needs mature management team

Each company needs to solve the dilemma about the remuneration policy. It is usually one of the key elements in the area of Human Resources and the issue with the remuneration policy is about announcing the principles and the real content to the employees or to leave the policy un-transparent and provide the managers and employees just with small pieces of the information.

The company usually develops some remuneration policy and does not announce the details to the managers as they are pushed to implement the remuneration policy among their own employees. As they do not understand the principles and they are not aware of the details – they try to undermine the whole effort of the HRM Function and they need to be pushed to use the remuneration policy as a must.

They start to complain about the remuneration policy and the un-transparent remuneration policy becomes a center of all their discussions. They fight for the transparent and open remuneration policy as they can understand to it and they have a managerial tool for the management and development of their employees.
In reality, they are not interested in the transparent and open remuneration or compensation policy. They are interested in details behind the remuneration policy to have all the hidden numbers. The employees are just their victims.

The HRM Function can start a big initiative of opening the remuneration policy to employees and the managers start to press against opening the remuneration policy. When the remuneration policy is open and available to the employees, they can have very tough discussions with their managers about their salaries and the career opportunities in the organization.

So – do your managers want to have the open and transparent remuneration or compensation policy?