Why Employees Shouldn’t Share Wages
Why Employees Shouldn’t Share Wages
How much do you feel you are worth? That is an important question when deciding if you are working at a job worth having. Unless of course you are the owner of the company, then it becomes a little bit harder to just up and quit for a better job. For this article though we are looking at things through the eyes of an employee. It is important that an employee feels like they are being respected. A respected employee is a productive employee, and an employee feels respected thanks to interactions with management and to a well done payroll department. Part of this comes from the confidentiality that comes with doing payroll.
Mankind is a jealous species. Sometimes it is something small, wishing we could have the neighbor’s BMW while also being happy with our Nissan. Other times, we can take jealously to dramatic heights, creating rivalries, starting arguments, and tearing apart relationships, including work relationships. When you do payroll, it is always recommended to keep worker’s wages private, and to encourage them to do the same. This is because even if you are paying a decent wage to an employee, and they think they are getting a decent wage for their work, it can all turn around when they find out a coworker is getting paid more than they are. Some employees are rational about learning someone is getting paid more than they are, figuring they have worked there longer, or have more education in the profession. Some will feel motivated to work harder, so they can reach that pay grade someday. A select few don’t care either way. The ones you need to worry about, are the employees who feel it is unfair that someone else is getting paid more.
Some of these employees will make their discontent obvious, others will try and pretend it doesn’t bother them. Either side of the coin needs to be dealt with quickly and effectively. This doesn’t mean giving them a raise to match the other employee’s salary, it means explaining why they are getting paid more in an understanding way. Don’t do it like it is not an issue, you will come off condescending, or uncaring, which will only compound the issue. Instead, take a few minutes to meet with the employee one on one, and discuss the matter in depth.
When you are talking to the employee about the difference in pay scale, remember these key points.
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Give the employee compliments. Make sure they know the difference in pay is not due to their work performance.
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Explain why the other employee is paid more in simple terms, rather it is because they have been working there longer, have some form of education that benefits the job, or they do extra, such as offer to work on weekends when most want off.
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Show the employee what they can do to one day reach that pay level.
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Don’t make promises you cannot keep. Don’t tell an employee if they work harder, or offer to work more hours and they will get a raise if you do not know if you can deliver.
If done right, this can turn a jealous employee into an even more productive employee, working harder with the thought of a pay raise in mind. It will also help to ease tension in the workplace. Even if you are not involved in the issue, just feeling the tension between two coworkers can make the workplace seem a little less welcoming. If you want to try and avoid this problem from even happening, there are a few steps you can take to reduce the chances of pay wages being shared.
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Give out Paychecks in Envelopes: It is not just how much another employee is getting paid an hour, but also how much they are getting paid weekly. If there is a large enough gap in two employee’s weekly checks, they can figure out one of them are getting paid more.
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Offer Direct Deposit: With direct deposit, there is no physical evidence of how much someone is getting paid, it is all done online. This removes the chance of someone accidently seeing another person’s paycheck.
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Employee Handbook: We mention employee handbooks quite a bit, because they are such a valuable tool in the workplace. Put in your employee handbook about how you shouldn’t discuss your wages at work.
There is a good chance that this situation will never come up, especially if you take the steps we just listed above. They are not just vital for a tension free workplace, but also a part of an effective payroll department. Want another tip for how to avoid employees learning about each other’s wages? Consider contacting Vision H.R. to outsource your payroll to. Vision H.R. is the Payroll Management Company Daytona Beach and surrounding cities count on to handle their payroll and human resource management. For a free quote, or to just learn more about our services, you can visit www.Vision-HR.com
