The brilliance of pay transparency

16th May 2024

Staff member Samantha

Samantha Gee

Pay transparency is a priority for many organisations right now, but is this for the right reasons?

With the impending EU Directive mandating pay transparency from 2026, and the ever-increasing transparency legislation in the US, many organisations are having to get their pay into a good place fairly swiftly.    

But looking at pay transparency as merely a compliance exercise is missing a very big point.     

Every now and again in the reward world something comes along that is seriously brilliant.  Like a few years back when progressive organisations realised the massive impact recognition could have on employee engagement.  For very little cost.  Brilliant!

Well, today’s progressive organisations are reaping the benefits of pay transparency.  I’m not talking about publishing everyone’s pay.  More about having clear pay foundations, making consistent decisions that employees trust, and communicating pay in a way that employees understand.

So, what is so brilliant about pay transparency?

  1. It improves employee engagement.  The Glassdoor Global Salary Transparency survey showed 70% of businesses see pay transparency as good for employee satisfaction.  When an individual understands how their pay is set, they are more likely to trust it is fair, and trust matters when it comes to engagement. 

There’s certainly some groundwork to do to ensure you have a clear pay strategy and the appropriate frameworks in place, and to address any inequities.  But the sooner this is done, the sooner you can address any unfairness and reap the benefits of more transparent pay.

What are you waiting for?

How we can help

If you’d like help with your pay and reward strategy, or preparing for pay transparency, please do get in touch for an initial conversation.

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