How to Make Pay Transparency Part of HR Strategy | HR Technologist

Talent Management

Pay transparency, in general, is the degree to which employers are open about what, why, how and how much employees are compensated, and the extent to which they allow employees to share pay‐related information with others. In recent years, several companies have taken measures to introduce pay transparency, either during recruitment or for internal compliance. The article provides a few insights on what five companies like Buffer, BBC, Whole Foods, Starbucks, and Stability Healthcare, are doing to adopt pay transparency. The tactics employed by these companies range from providing a list of its highest-paid employees to showing salaries and compensation for open jobs in order to minimize the need for negotiation or any risk of ambiguity. And while company size, culture, and other factors will determine an organization’s degree of pay transparency, these insights provide a few ideas for making progress in this area. Some good questions to ask: 1) On a scale from 1 (little transparency) to 10 (total transparency), how transparent is your organization when it comes to pay? 2) How would becoming more transparent positively impact things like employer brand and recruiting effectiveness? 3) What is one step you can take to drive towards greater transparency?

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