BUSINESS STRATEGY trust . By having access to the salaries of their counterparts , employees can determine if they are paid fairly for their skillset and negotiate to close any salary gaps . Employees that believe they are valued feel more comfortable asking tricky questions of business leaders . This aids greater communication on all issues , beyond pay , with the potential to create harmony far and wide across the organisation . Who doesn ’ t want to work in a progressive place like that ?
In essence , pay transparency is a strategic approach that enhances workplace culture , productivity and the overall success of a business . It ’ s a no-brainer .
Making pay transparency work for your business
As you might expect , an issue as traditionally thorny as pay transparency takes a great deal of insight and ingenuity to implement smoothly .
To get it right there are a number of key considerations to be mindful of :
• Ensuring access to market data – so roles are benchmarked and compensated in accordance with competitive companies
• Utilising insights from internal sources – HR data is another key layer of benchmarking information
• Aligning pay decisions – if you work in a large organisation , the chances are managers have the final say on pay decisions in their departments , which can quickly lead to disparities – a more centrally agreed system creates a level playing field
• Ironing out pay idiosyncrasies – with pay benchmarking to hand and a culture of compensation beginning to blossom , the final step is to sort out any lasting disparities before ‘ going transparent ’ across the business
A further crucial lens through which to view pay transparency is acknowledging the simple importance of paying people what they are worth . We launched our Earn Your Worth pledge in 2019 . The scheme asks candidates to focus on a package they ’ d like – and expect – based on their skills and experience , rather than focusing on how they are currently compensated .
This initiative is informed in the fact that ethnic minority groups generally earn less than their white counterparts ; which is perpetuated by incremental pay awards . Candidates are supported by trained consultants to aid negotiations based on what they desire and the industry benchmarks they are given access to , leading to a more satisfactory result that levels up their professional lives .
I believe that businesses which hitch themselves to the pay transparency bandwagon will win the war for talent . Perhaps nowhere more so than in the creative , digital and tech space , where the best future-focused competencies such as user experience , technology leadership and digital marketing skills continue to come at a premium .
I believe the benefits not only to the individuals but the collective benefit to business and overarching economy should not be ignored . This feels like a win-win and ultimately the right thing to do . x
Rosa Rolo , Group Strategy Director , Major Players & Arrows www . intelligentcxo . com
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