Talking money can be difficult or uncomfortable for many. 

Here are key things you should think about when discussing salary with your team members 🗝️

Make it a norm

Salary talk should happen as an ongoing conversation you have with your team members. You should have regular designated time for salary talks. For example, at least twice a year. It should not be a taboo topic, even though we know it can be a difficult one. Be open and communicate to your team that it is a topic they can raise with you, even though it might feel uncomfortable. 

Be fair from the start

Paying a fair salary for similar positions and experience will go a long way to keep your team happy. When people talk about salaries with each other, and they will, abnormal pay gaps between similar positions will most likely result in jealousy and discontent in your team. Being transparent about the way salary is structured is a key component for any organization. Paying fairly will also help you battle inequality that can stem from unconscious bias. 

Know where you stand

It is very important to know before going into any salary talk to know what you can offer and what the market rate is for a similar position. This gives you a better understanding of the situation when you go in for a salary talk. 

Listen to concerns

Make sure you understand where your team member's motivation lies. Look into if their tasks are appropriate for the job they were hired to do and the compensation that they receive. Sometimes people are asked, for various reasons, to take on more tasks or responsibilities than they were originally hired to do.

Make sure you take that into account when discussing salary because if people are dismissed when they feel they are overworked or underpaid they are more likely to look for other opportunities. Sometimes they might not need a salary increase but rather a better work-life balance.

Discuss benefits

There might be other ways to compensate your team members besides direct salary. Supporting with commute costs, providing food and beverages, subsidizing fitness or sports, work clothes, insurance, pensions, health benefits, company events, etc. Take account and see if there are any benefits you can offer your team members that increase satisfaction.

Be prepared and transparent

Transparent communication in a salary talk will go a long way, and as a team leader, if you feel there is an opportunity to get more money for your team, you should act as an advocate for your team in the company.

However, if you cannot offer your team members what they are asking for, it is important that you are honest about it. The risk is that your team members might look for other opportunities, but being transparent and honest minimizes the risk of burning bridges, and even if team members leave, you can still maintain a good relationship with them, which can be a valuable resource.