Rewards Communication in Australia and the United States: A Survey of Policies and Programs

Abstract

Human resources (HR) and compensation professionals in Australia were surveyed to determine how they communicate rewards information to employees. The rewards communications survey examined five reward components: organization reward strategy and philosophy, base pay, base-pay increases, short-term variable pay and benefits. This research found that HR and compensation professionals believe that rewards communication is important, even to the degree that it affects organizational performance, employee satisfaction with pay, employee retention and employee motivation. They also believe that most employees have limited understanding of the purpose of reward programs and how they work; in fact, many do not understand aspects of the pay system that directly affect them such as pay ranges, average pay rates and performance targets. Comparisons between Australian and United State reward communication policies and practices are reported.