Pay Transparency: What States Have It & Why It’s Important
In today’s economy, it is more important than ever for workers to be able to trust their employers.
Pay transparency means that?employers disclose how much they are paying all of their employees, from the CEO and other leadership positions to middle management, entry-level and even custodial staff.
And when studies show that?50% of employees say that without pay transparency, they are likely to leave their current job, one of the best ways that employers can build trust with their employees is to provide this information.
In this article, we give you a complete breakdown of pay transparency:
What are the benefits of pay transparency?
Pay transparency can help to close pay gaps
Over the past few years, there has been a collective push to create a more level playing field for all employees, especially in terms of race and?gender pay inequity .
When everyone knows what everyone else is making, it’s harder for employers to get away with paying women and people of color less than their white male counterparts.
Pay transparency uses objective data to determine salaries
Rather than using subjective factors like an employee’s negotiating skills or how well they get along with their boss, pay transparency can help to create a more objective workplace and prevent discrimination based on the personal preferences of high-level decision-makers.
Pay transparency can attract top talent when hiring
When job seekers know that a company is transparent about pay, they are more likely to apply for a position.
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Pay transparency can also help to boost morale, motivation, and?retention in the workplace . Employees who feel like they are being paid fairly are more likely to be engaged and productive.
What are the downsides of pay transparency?
Pay transparency may cause friction among employees
If some employees feel like they are being paid more than others for doing the same job, it can create tension and resentment between coworkers.
Employers may also have a hard time retaining top talent if they are paying less than their competitors.
Pay transparency may be difficult to get buy-in from employers
Employers may be resistant to pay transparency because they feel like it gives away too much information about their business. They may also be worried about the potential for lawsuits if employees feel like they are not being paid fairly.
Continue reading the full article? to find out what starts now have pay transparency laws in place.
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