Research for this report was conducted by WorldatWork and Dow Scott, Ph.D. (Loyola University Chicago), and Bill Bowbin, CCP, Richard Sperling, CCP, and Tom McMullen, Hay Group. Dennis Morajda, Performance Development International, Inc. is acknowledged for his contribution to the data analysis and interpretation of results.
Numerous presentations at WorldatWork annual conferences and articles published in WorldatWork Journal and workspan offer compelling support that communication helps improve the effectiveness of reward programs. These presentations and articles also point out that line managers and compensation professionals fall short in their attempt to communicate pay strategies and practices. Our 2007 survey of WorldatWork members found that pay communication was both the greatest strength and greatest weakness of reward programs. In that survey, 15 percent of respondents reported communications as the most positive attribute of their organization’s rewards programs, but in almost twice as many cases (29 percent), it was viewed as the element of their pay program that most needed to be improved (Scott, McMullen, Sperling, and Bowbin, 2007).