Meeting with your direct report to discuss the performance and adjusted compensation. Use this free salary review meeting agenda to have a successful session.
Share how the company determines total compensation, including a conversation about leveling, tiers, or approaches.
Show appreciation for the employee’s work
Share an update on adjusting the compensation or title for the employee
A review of the details of the compensation data so there is no misunderstanding
Ask how employees feel about the update and get feedback.
A Q&A session to answer potential questions from the employees.
A compensation review meeting is a conversation with an employee to discuss the salary range assigned to his position and a potential raise. This meeting aims to ensure that your employees are paid what they are worth compared to their peers in other organizations.
Such a salary review meeting allows you to get insight into how employees feel about the company's salary philosophy and structure and ensure that workers are paid fairly, thus helping an organization retain its best talents.
The meeting frequency differs from one organization to another. The common practice is to have them annually or every 6 months, or every time when a major compensation adjustment is made.
The employee and the supervisor/manager should attend the meeting. Lastly, it should be brief and packed with value; about 45 minutes is fine.
Being prepared goes a long way to determining the success of a compensation discussion. Below are some of the things that should be on the agenda for this meeting.
A great way to start this discussion is to briefly introduce the company's compensation philosophy and the determining factors. This should include factors like leveling, tiers, performance, and bonuses.
This will set the tone for the conversation and ensure both are on the same page.
After the review, you should get down to business quickly. Foremost, you need to appreciate the employee's work and commitment. Also, show the employee that you are keenly keeping tabs on his achievements and are interested in his progress and development.
Secondly, share the important update on adjusting his title or compensation. You need to give a detailed review of the adjustments. For instance, “Starting next month, you will move from the role of a content writer to the content editor. And the monthly salary …"
If there is a compensation increase, give the breakdown of the values behind the adjustment and how the calculations are made.
Finally, it is important to clearly state when the change will be effected to avoid misunderstandings.
At this stage of the conversation, take a moment to ask how the employees feel about the update. Are they satisfied with the adjustment? Whether they feel they are paid their worth? Give them the necessary time to think and respond appropriately.
Also, ask for their take on the general compensation philosophy of the company and areas of improvement.
You should give your employees time to ask questions and seek clarifications. Answer the questions and explain things as clearly as possible within your capabilities.
Also, take down any questions you can't answer and promise to get back. As a hint, expect questions on the next steps after the update, things to do to reach the next level, and the responsibilities that come with a new title.