Pay Transparency: What You Need to Know
What is pay transparency, anyway?
Pay transparency is the practice of openly disclosing the wages, salaries, and benefits offered to employees within a company. The thought process behind pay transparency is that it allows for
greater fairness and equal treatment among your team. It’s one of many ways to begin closing the wage gap and increase diversity on your team.
Ok great, but what does that mean for hiring?
It’s actually pretty simple. If you’re located in a part of the country where these laws are in place or if you’re open to hiring anyone in these locations, it means you must post the ranges to your job postings and be able to provide the information to candidate’s when asked.
Where do I start?
If you don’t have pay bands established for your organization, that’s the first step you need to take. That means establishing pay bands for each role & level in your organization. There are professionals you can hire to help you with this (like People Principles!). This can be a daunting and complex project if you’re starting from ground zero. Please, please, pretty please, lean on your HR team or hire an outside professional to create a fair and transparent process for your current employees. If not handled correctly, you risk losing valuable members of your organization.
Once you’ve established bands for your organization, you can tie those to open roles you might be hiring for or begin creating bands for any new roles you need in the future. From there, make sure to clearly communicate pay expectations and ranges throughout the interview process.
This may seem like a lot of work, but really it’s just a change in process. Everyone loves change, right? The benefits of pay transparency have a far reach. By openly disclosing pay and benefits, companies can attract top talent, increase retention, and improve company culture and morale. What more could you ask for?