In a BLR webinar entitled "Pay Grades and Salary Increases: How to Build a Competitive, Equitable Compensation System in Your Workplace This Year," Dan Kleinman, principal of Dan Kleinman Consulting described ways to develop compensation packages that are understood and respected by employees.

Methods for creating open communication with employees:

• Updated compensation policies appear in your employee handbooks, Human Resources intranets, etc. and other accessible locations for workers to find and review.
• Employee's performance appraisals include a discussion of compensation issues and questions.
• Employees receive regular (at least annual) compensation statements that explain their pay and benefits in detail.
• Job postings contain a clear indication of the pay practices and levels involved.

Methods for developing management support and buy-in:

• Frontline supervisors undergo regular training in deciphering and applying compensation policies.
• The Human Resources department provides input on (or directly oversees) compensation policies.
• C-suite executives regularly review the overarching compensation philosophy of the organization.
• The organization documents compensation decisions thoroughly.

Methods for developing respect for the compensation process:

• They do not perceive gross inequities (real or imagined) in the organization's compensation practices.
• The feel confident that the organization is dealing with compensation challenges in a challenging economy fairly and proactively.
• The organization does not face periodic flare-ups of discrimination complaints associated with compensation.

Dan Kleinman is the principal of Dan Kleinman Consulting (www.dankleinmanconsulting.com), a California-based compensation and human resource consulting firm. For the past 18 years he has served a broad spectrum of regional, national and international companies providing compensation, performance, organizational planning and reward-system design services.