Q. "A new employee told coworkers about her signing bonus. They’re upset they’ve been here longer and haven’t gotten anything extra. What should we do?"

Answer:

(1) Don’t reprimand the employee who shared salary information. Discussing pay is a protected concerted activity under the National Labor Relations Act.


(2) Be as transparent about pay decisions as appropriate. Sharing your reasoning with employees can provide clarity and understanding, helping to prevent surprises and speculation. 


(3) Finally, consider why you offer signing but not retention bonuses, and whether you can afford to do both. If you’re offering sign-on bonuses because it’s hard to hire right now, realize not offering matching retention bonuses may ultimately lead to more open positions if long-term employees leave over the inequity.


Additionally, be aware that offering one type of bonus but not the other could create pay disparities between employees who do similar work,  exposing you to discrimination and pay equity claims.

 

Need help with pay equity and transparency? A Compensation Audit & Analysis is the answer!

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