BUSINESS STRATEGY
RESEARCH BY THE EQUALITY AND HUMAN RIGHTS COMMISSION REVEALS ALMOST TWO- THIRDS OF WOMEN ( 61 %) CHECK OUT POSSIBLE GENDER PAY GAPS AT PROSPECTIVE EMPLOYERS . talent , it ’ s an important factor for businesses who are on a recruitment drive . This will only be enhanced by the EU Pay Transparency Directive which has recently come into force further highlighting the issue . Whilst the UK is no longer subject to European law , many observers expect the idea of similar legislation to gain traction on these shores , with calls for an equivalent UK law gathering momentum .
What you have to gain from pay transparency
The benefits of pay transparency policies are clear . businesses paying more for external talent than internal talent .
A boost to productivity , besides helping to create a sense of self-worth among individual employees , pay transparency promotes a culture of trust , where salary suspicions are sidelined and shared goals are the order of the day . In turn , an entire workforce that is pulling in the same direction will drive productivity . As a result , revenues and profit are likely to receive a significant boost , with Forbes reporting that organisations with a high degree of transparency report profit margins that are 21 % higher than average .
Wider economic benefits – it ’ s been calculated that ending the divisive issue of pay inequality can pump serious money into many sectors . For example , a report prepared for the House of Lords for International Women ’ s Day claims £ 1.5 billion would be added to the total value of STEM-led industries if they did a better job of attracting more diverse talent currently put off by opaque pay strategies .
Employee morale and motivation – 82 % of workers say they would be willing to work harder if their company implemented an open salary policy . Fair pay fosters feelings of being valued , which in turn fuels work ethic but also supports creating a more diverse workforce . Seventy-four percent of jobseekers argue that salary transparency creates a fairer environment for employees . Meanwhile , a Harvard Business Review study shows that pay transparency reduced employee turnover rates – as it alleviates employee concerns about being underpaid and eradicates the issue of
Bringing diversity to the fore – attracting diverse talent in this way creates an inclusive platform at every level of an organisation . It also promotes fair pay and equal opportunities for all staff members , building trust in the organisation . A clear DE & I policy places a value on workers from minority backgrounds that is so often missing . It can propel them to climb ladders , be visible and inspire the next generation . That ’ s an invaluable impact .
An open-door policy – ultimately , pay transparency builds a culture of confidence and
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