Many companies are beginning to look at year end results. Were business goals achieved? How does 2010 look? Do we need to re-forecast goal initiatives? Often times, current year outcomes dictate merit increases the following year. When a decision is made to implement or continue a salary freeze due to business need, communicating this news effectively can be difficult.
Educate your staff on business requirements and results. Employees have an easier time buying into something once they understand why. If a company simply states the salary freeze with no information, the negative impact can be quite severe. No one likes to hear their hard work isn’t going to be recognized with a salary increase but recognition can take others forms. Increased visibility and input into the business as well as spot awards of time off are examples of recognition always appreciated.
As you prepare your message, ensure all employees hear the same news and can trust its truthfulness. Respect your staff by giving them as much information as possible and solicit their ideas. It is during difficult times that some of the best ideas surface.