Top Reward Strategy in Tough Times ... Communication!

I conduct an annual survey of compensation trends and practices in my market.  Having done this survey now for a number of years, I find it interesting to note the patterns in employee rewards over time - in good economic years and in difficult ones.  My favorite question, one I ask every year, is: "What compensation strategies and tactics did your organization find most helpful to keep employees motivated and productive over the past year?"

I had occasion recently to back through historic survey results, and took a look at what we learned in 2003.

This was a tough year reward-wise, at least in my area of the country.  Organizations were facing business and financial challenges, many had tightened or even frozen salary increase budgets as well as their salary range structures.  Under these circumstances, I think it was - and is - interesting to note that the top reward strategy mentioned by HR professionals for 2003 was frequent, open and honest communication.  This wasn't limited to communication about pay, though that was certainly part of it, but rather included covering a range of topics with employees - from business conditions to the company's goals and plans.  Frequently.  And honestly. 

It was this commitment to openness and dialogue, according to the HR leaders participating in that survey, that had the most positive impact on morale productivity during times that were challenging.