A few weeks ago my sister and I were discussing our recent flight on Virgin America Airlines. We were presenting together at the WorldatWork Conference in Philadelphia and shared the same flight. Having flown the airlines many times in the past, I was curious to hear about her experience since this was her first time flying this carrier. During the non-stop flight from San Francisco to Philadelphia, she paid a bit more to upgrade her trip. For this, she received more legroom, free food and a set of nice headphones for use during the flight.
She raved about the cool blue lights and modern leather seats. She went on about the movies and TV shows available on demand. She talked about how much more she enjoyed this flight than recent trips on other airlines. Although I did not upgrade, I had to agree that it was a pleasant trip.
A few days later we returned on the same airline. This time she didn’t upgrade. She sat in a seat with less legroom and didn’t complain. She looked at the prices on the menu and not a peep. She looked into the pocket on the back of the seat in front of her and asked me what had happened to her headphones. After just one trip, she felt that the headphones were not so much of an upgrade as they were an entitlement.
I thought about this in terms of compensation. So often the little things we offer are only noticed when they are taken away: good coffee as opposed to industrial swill, an extra $30 dollars in transit fee coverage, or free spousal attendance at the annual holiday party are some examples. When given they are seldom noticed, but when taken away it is inexcusable.
This is largely because the reason for them was never communicated. Unfortunately, many companies treat their annual bonuses or equity refresh grants in the same way. They are simple tick marks on a checklist, with no extra care to ensure that the purpose and value is thoroughly communicated. When we finally do input a true performance management process, or equity grants are taken away from the bottom half of the company, the negative reaction to the reduction in compensation can often seem out of proportion. This can even happen when one program is phased out and replaced by a new, better communicated, solution.
Don’t guess at what has value to your employees, or the elements to which they feel entitled. Take a moment to ask what is important. You may find, like my sister did, that an inexpensive pair of headphones provides just as much as impact as your new idea for a plan.