According to Ieva Burjanienė, human resources expert at Yara European Business Services, competent and open managers are an important factor in maintaining employee motivation. Although it is still taboo to talk about salary in Lithuania, companies are increasingly initiating dialogue on this topic. This is determined both by the changed legal regulations in Lithuania, and by the transformation of the relationship between organizations and employees from a hierarchical to an equal partnership, which becomes an incentive to constantly look for new ways to maintain productivity and satisfaction.
“Not all employees easily initiate a conversation about salary. Compensation conversations are part of every manager’s job, so we often recommend that the manager initiate a conversation with the employee about their expectations, not only in terms of salary, but also in terms of professional growth. It is necessary to discuss each organization’s compensation policy, existing vertical and horizontal career opportunities,” she says in a press release.
Policies and adherence to them build mutual trust
“For an employee to feel appreciated, clarity is important. Organizations must have transparent and equal pay policies and procedures. They must not only be freely available to everyone, but also clearly communicated. It is also useful to clearly define the job functions and competencies required to perform a particular job. Only a consistent system allows for an objective assessment of remuneration for each individual according to his/her competences, completely independent of the individual, age, gender or race. When the company creates rules that apply equally to everyone and refines the values and culture that are fostered, there is no more room for conflicts,” she shares.
However, I. Burjanienė emphasizes that the mere existence and communication of politicians is not enough – it is important to follow them and avoid making exceptions. It is observed that internal audits of the company have a positive effect in practice, during which it is possible to determine whether the company adheres to the principles of equal remuneration, does not deviate from the set goals, this is especially relevant for large corporations.
The human resources expert adds that in order to avoid conflicts or unpleasant situations related to the salary of employees, it is important not to be afraid and not to avoid answering uncomfortable questions.
“Sometimes employees are interested in why the company does not have one or another additional benefit that is offered in another company. In such cases, we openly talk with employees about the company’s remuneration policy, the full package of employer value offered,” says Ieva Burjanienė in a press release.
However, not everyone is brave enough to express their expectations out loud or openly with their manager. According to the expert, it is very important that employees have the opportunity to express their opinion in as many different ways as possible, and that a culture of trust prevails in the organization. It should also be kept in mind that the expectations of employees may not correspond to competences or job boundaries, so open communication and a space where both parties feel safe are becoming increasingly important attributes for ensuring trust and satisfaction. In such cases, anonymous surveys of employees with the possibility to answer, react, change can be useful.
Remuneration review – every year
Fair wage projects can also help avoid wage conflicts. For example, the Yara company has been implementing a minimum wage project since 2023, during which the company has determined the standard of living it will provide to its employees as an initial starting point for their careers. The rules of the project define that the employees of the company are “decoupled” from the functions or competences they perform, and the minimum salary limit is drawn much higher than the salary stipulated by legislation or dictated by the market.
“With this project, we aim to provide at least an average standard of living for all people. Only from this minimum salary limit of the company, we will evaluate the salary of the employees individually, according to the salary ranges of the position and human competencies. The company’s goal is to reduce poverty and provide all employees, without exception, with a salary that allows them to live with dignity. Since our company is international, we operate in 60 countries, we sought to find a way not only to provide a decent minimum wage, but also to ensure that people in all countries are provided with an equivalent standard of living,” says Ovidija Ferencienė, communications specialist.
According to the interviewees, this project is aimed at reducing poverty and ensuring equal opportunities, so it was very important to communicate openly about the essence of the project and how it will or will not affect the salary received by the employees, whether it will affect the future salary review process. When asked how often a company should review or increase an employee’s salary, Ieva Burjanienė answers that the optimal period for large companies is every year.
“Large companies or organizations must strive to maintain integrity, as regularity helps provide clarity, assurance and a sense of security to employees. In this way, it is possible to take into account not only the size of the organization or the challenges that arise, but also respond to changes in inflation, maintain employee motivation, and correctly and honestly assess possible deviations from the market and adjust them. Nevertheless, companies must not “lose” their desire to remain competitive, so in non-standard situations, it would be worthwhile to look for possible solutions “here and now”, without waiting for the annual salary review cycle, or openly communicate about the missing competencies and provide tools and means to acquire them.”, she summarizes. .
