Companies are continually revising their compensation plans, making it difficult for employees to keep up on the policies that affect them most. When communicating your company's new plan, follow these important steps:

Step   Example
1. Explain what's changing
Outline how the new structure differs from the old plan. Share important revised details, such as updated pay scales and effective dates.
Pay raises will now become effective on August 31 instead of April 30.
 
2. Explain what hasn't changed
Be clear about those plan aspects that have remained unchanged.
The fiscal and performance management year still runs from July 1 to June 30.
 
3. Share why the changes are necessary
Be candid with employees, letting them know what's in it for them. Then share how the change will help the company meet its strategic objectives.
The new timeframe will allow us to provide employees with more timely increases. The change will also allow the company to transition to a unified global system that will increase efficiencies.
 
4. Let employees know how they will be impacted
Communicate how the change will impact employees' pay adjustments going forward.
Your raise will become effective on August 31 and payouts will begin with the first full pay cycle in September.
 
5. Communicate what employees need to do
Share any steps that employees need to take, and let them know about additional communications or resources, such as FAQ documents, that will help them further understand these important changes.
Review the employee guide entitled "Compensation update: what you need to know" for details about the pay change cycle.
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