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You have a staff morale problem: Existing employees are upset over the high salaries and incentives being offered to new employees. These incentives have become critical to your recruiting success. How do you keep everyone happy without jeopardizing your recruiting efforts?
What the Expert says: Recruiters have learned to get creative in order to find and hire top talent. As part of a recruiting strategy, aggressive compensation packages and bonuses have become commonplace. Further, candidates have learned how to effectively negotiate high salaries, sign-on bonuses and other incentives.
The result can be a significant variance among employee salaries. Existing employees who catch wind of these incentives can quickly become bitter. There are steps that can be taken to alleviate this sticky situation. When a candidate signs an offer letter outlining his or her compensation package, include a request that the candidate not to reveal the specifics of his or her compensation agreement to any other employee or managers.
Only the employee and a small group of HR and executive management personnel should have employees' salary or bonus information. There is no way to prevent gossip, but you can discourage it by stressing the confidentiality of all employment terms. Add a statement regarding the confidentiality of compensation packages to your Employee Handbook.
Next, conduct an audit of existing employee compensation packages. Are they underpaid compared to their new counterparts? If so, analyze the discrepancy and take steps to fill in the gaps. The creation of a retention bonus program will show existing employees that they too are appreciated. By rewarding employees for remaining with your company, you'll give them a benefit that isn't offered to these new employees. Make sure that your existing employees are excited about their own compensation packages. This way, they'll be less likely to care about what their colleagues are earning.
