This informal CPD article, ‘The Importance of Reward Communications’ was provided by Jenna Thompson, Reward Communications Manager at 3R Strategy, an independent pay & reward consultancy based in the UK.
Reward communications ensure your employees understand their pay and benefits clearly. When done well, they remove uncertainty that could lead to high turnover or a lack of trust. But here's the thing that might surprise you: well-communicated pay equity is 13 times (1) more important for engaging and retaining employees than high salaries alone.
Think about what that means. You could spend thousands on pay rises—or you could invest a fraction of that cost into building a sense of fairness and purpose through clear communication.
We're Speaking a Different Language
Meet Clive. Clive loves lengthy documents and dense walls of text. He browses the company intranet for fun, and definitely understands terms like "upper quartile," "job architecture," and "internal equity."
Truth is, Clive doesn’t exist.
As HR specialists, we sometimes forget that what makes perfect sense to us can be completely baffling to everyone else. When we talk about pay, we need to speak human, not HR. This means:
- Using well-known, straightforward terms
- Not using acronyms or jargon
- Highlighting key information in written documents
- Thinking about non-native speakers (captions in videos, multiple language translations, simple, easy to understand language)
- Avoiding idioms
Why Get Serious About Pay Communications?
Nobody sets out to be unfair and inequitable, but we need the evidence to substantiate that we have a fair and transparent approach to pay.
Even if you invest heavily in developing a robust reward framework—a new grading structure, comprehensive benchmarking, and clear career paths—how do you communicate all of this to your people?
It’s such a significant topic and so important to our employees. This is why we need a robust set of engaging communication materials, not just to support the policies and processes, but also for people to refer back to over time.
Different Generations, Different Preferences
One of the biggest hurdles many organisations face is a diverse workforce spanning multiple generations. Each group has different communication preferences, and a one-size-fits-all approach simply wouldn't work.
Many create a lengthy policy document, stick it on the intranet, and wonder why nobody engages with it. We all learn and consume information in different ways. Offering a range of communication materials will give your team members equal opportunities to develop a clear understanding.
For example, not everyone has the capacity or desire to do lots of reading, so videos are an excellent alternative in this instance. We suggest providing employees with a range of tools that will appeal to all learning styles. 90% of information processed by the brain is visual (2), so if you can find ways to visualise your key messages, you're already ahead of the game.
What Good Reward Communications Look Like
A comprehensive suite of materials could include:
- Explainer videos and manager training
- One-page graphic-led summaries
- In-depth guides
- Detailed Q&As
The result? People know exactly where to go for the information they needed.
The Biggest Surprise: It's Not About the Money
Employees are generally more concerned with knowing they're being treated fairly than with what they're actually paid.
Most people are comfortable with the policy and principles around what we're driving towards—pay equity, transparency, fairness in the process.
The challenge isn’t always the pay levels themselves. It might be seeing their role evaluated in the context of other roles in the organisation for the first time. Nothing has actually changed - but seeing it all written down will likely lead to some difficult conversations.
Preparing for Those Difficult Conversations
This brings us to a crucial point: 67% of organisations (3) provide no manager training at all on how to tackle pay conversations.
When managers don't have the tools or confidence to discuss pay, they often deflect to HR or avoid the conversation entirely. This creates mistrust and speculation—exactly what you're trying to avoid.
With 68% of candidates refusing to apply for jobs without salary ranges (4), and Gen Z employees increasingly demanding transparency, organisations that get this right have a significant competitive advantage.
If you're thinking about improving your reward communications, start with your why—what are you trying to achieve? Then think about your audience and how they prefer to receive information.
Finally, don't forget to equip your managers with the tools and training they need to support the process.
We hope this article was helpful. For more information from 3R Strategy, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.
REFERENCES
- https://joshbersin.com/the-definitive-guide-to-pay-equity-increasing-productivity-innovation-and-sustainability/
- https://tax.thomsonreuters.com/blog/the-importance-of-visual-content-marketing-infographic/#:~:text=90%25%20of%20information%20transmitted%20to,for%20discerning%20a%20company's%20credibility.
- https://3r-strategy.com/global-salary-planning-report-2024-2025/
- https://www.reed.co.uk/recruiter-advice/why-you-should-always-state-salary-in-your-job-ads/
