MeadWestvaco

To be sure employees would understand the changes, managers needed to first understand the principles behind performance-based pay and rewards. Then they could be trained in how to explain it to their direct reports. Adding to the complexity, the company’s leadership council would be playing a key role in approving communications. This would require an integrated, phased approach.

Phase 1: Announce Changes

• Develop a 15-month communications plan to address all phases in the new process, from initial training to rollout and full use.
• Design materials for HR to educate managers on grade level/base pay adjustments, and to train them for employee discussions.
• Email all employees, announcing the upcoming changes and what to expect next.
• Post-survey employees to gauge overall understanding of changes, and ensure they’ve met with managers.

Phase 2: Roll Out New Performance System

• Prep managers for mid-year employee reviews using new performance measures — provide talking points and personalized statements.
• Create personalized employee statements showing changes and new salary band.
• Conduct leadership council and HR focus groups to discuss feedback.

Phase 3: Train for Performance-Based Discussions

• Design and roll out training curriculum for executives and managers, with a deep dive into all four compensation principles.
• Stress the link between pay/rewards and performance (of the employee, the business unit, and the company overall)

Phase 4: Reinforce “Pay for Performance” with Employees

• Create and roll out “It Pays to Know” campaign to employees — email campaign with links to a full brochure, plus newsletter version mailed to those directly impacted by grade/pay change.
• Stress the link between pay/rewards and performance (of the employee, the business unit, and the company overall).
• Review new system results with leadership council one year after initial implementation, and assess need for additional communications.