The business world is ever changing and like everything else, the ways compensation is thought about, pursued, completed and discussed among employers and employees alike changes too.  Here’s the latest myths and facts on employee compensation:

 

Myth: Hush hush is the way to keep everyone happy.

Fact: Ten years ago keeping salaries kept quiet and completely a personal matter with no discussion among fellow employees was appropriate in the workplace, but today, it’s changed.  Today employees not only share with other coworkers their salary and benefits information, but also post it all over social media sites.  Trying to ask employees to keep their salary information private is nearly impossible to manage and ensure true in todays world.

 

Myth: Your small businesses pay plan is in tune with the rest of competitor’s payments rates.

Fact: Pay plan rates and increase rates vary by job and industry.  Just because your company created a pay plan structure with your 5-year plan does not mean that employees will find it fair or be happy with the raise that they get today. Research the industry and job of each employee to find what average pay plan rates are- it is likely they will change from time to time.

Myth: An office manager or CFO is your best option for ensuring the CEO’s compensation decisions are executed.

Fact: If  a small business, it may be wisest to hire a consultant to help ensure compensation plans are executed.  Often in small businesses, there is so much happening that finances can be easily overlooking and be one of the biggest mistakes of entrepreneurs. By hiring an expert to consult and freelance style work to mange all finance and compensation plans, you really could succeed further.

Myth: Tools available and usable for employee compensation with fortune 500 companies and benefit implementation are not applicable for smaller businesses.

Fact: What works for large companies, can too work for small businesses.  Simple as that.