Spotlight on Pay Transparency
The Workplace Advisors
A national consulting & training firm specializing in the business consulting support & people skills you need to grow.
Pay transparency is defined by World at Work as “the degree to which employers are open about what, why, how, and how much employees are compensated.”
Pay transparency is often driven by legal requirements. Laws vary by state but generally focus on requirements that employers list salary ranges on job postings for open positions.
Compliance with legal requirements often means that current employees find out about pay ranges for their positions from job postings or external applicants which can certainly cause problems.
A Payscale Compensation Best Practices survey reported that 14% of responding employers have lost employees because those employees saw posted job ranges.
Furthermore, legal penalties can be significant. In the state of Washington, which allows remedy through the court system (as opposed to enforcement by a government agency), one law firm filed over 30 class action suits in one week.
Pay transparency is more than compliance. It’s about being proactive in your communications about compensation.
That doesn’t necessarily mean that everyone gets to see everyone else’s salaries. This practice happens in some tech companies, but it’s not common or required.
领英推荐
Employees should understand how they are compensated and the rationale that determines their pay.
This might include variables such as:
Even if there aren’t legal requirements in the locations where you do business, you need a compensation strategy that allows you to make offers to candidates and reward current employees within a fair, consistent framework.
Now is the time to be proactive about pay transparency!
Our compensation services were developed to help you spend your compensation dollars in the most effective way possible. Whether you're looking for job market pricing, pay structure reviews, or plan designs, we've got you covered!