'Culture of openness' important in onboarding new employees

Employers across New Zealand have been urged to encourage conversations about remuneration as early as the induction and onboarding process to establish a "culture of openness" in the workplace.

In a white paper, Strategic Pay stressed that being transparent and open when it comes to remuneration in the early days will "help to avoid it becoming an unnecessary source of confusion or discontent further down the track."

"The Induction and Onboarding phase is a great opportunity to impart knowledge whilst also getting to know each other, and therefore helps to build relationships," Strategic Pay advised.

The induction phase refers to a new employee's actual transition into the workplace - which Strategic Pay noted can be quite a difficult time to talk about remuneration.

But according to its white paper, this phase is the "excellent opportunity" to educate a new hire on the organisation's Total Reward proposition so they can appreciate the monetary and non-monetary benefits on the table.

"Be proactive and make it easy for them — it should be a standard part of the induction process and covered off just like any other organisational policy or process," the white paper read. "Aim for 'no surprises' when it comes to remuneration and promote a culture of openness."

Encouraging early remuneration talks

To encourage these conversations, Strategic Pay said employers should "pre-empt" the types of questions that new hires are likely to have.

Some employees may ask about longer-term benefits, such as the remuneration review process and incentive schemes.

"Spend extra care and attention to people new to the workforce and/or New Zealand, because what's obvious to you may not be known to them," the report read.

Employers should also take the time to explain the different components of their remuneration package.

"If you have a grading/banding or other internal remuneration structure, then explain why they're starting at a particular level, and what the process and timeframes are for this to be reviewed," Strategic Pay said.

"If applicable to your organisation, it's also a good idea to explain how career pathways/promotions work, so they have some initial information on what future opportunities could exist."

Meanwhile, if the organisation also promised any special rewards during recruitment, such as a sign-on bonus or relocation allowance, Strategic Pay said it's best to proactively deliver them on time.

"New starters will be reassured when they feel the organisation is looking after them and delivering promptly on any promises made," it said.

Find out more on how employers can be proactive during the induction and onboarding process in this white paper from Strategic Pay.