Professional Documents
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Pay Transparency Will It Work
Pay Transparency Will It Work
More than half the two thousand organizations also infiltrate salary decisions when
wh pay is kept secret.
surveyed by Willis Towers Watson, a US based When pay is transparent, organizations must be able to
consulting company, decided to increase transparency justify each employee’s salary – thus reducing or
around pay decisions within the next two to three eliminating any type of bias.
years. Verve, a UK based technology company took a
plunge into pay transparency allowing all of their When it comes to salary transparency, companies fall
employees know the salaries of their bosses, their somewhere on the continuum of staying totally totall silent
peers and even their CEO. All the employees at CARE, a on one end and openly disclosing salaries on the other.
Nashville-based healthcare organization know the pay While considering which pay strategy makes sense for
ranges forr all the positions in the company. Another each organization, it’s important to keep in mind that
New York-based
based software company, Fog Creek, there is no best practice, it’s about the correct fit.
ensured pay transparency in their organization.
Employers have long avoided discussing money at
Open access to colleague's pay, referred to as pay work, partly because concealing salary information
transparency, has long been pushed as cure for gender keeps compensation costs down. But the examples
pay gap. Further,, if everyone knows everyone else's above clearly show that the attitude is beginning
pay in the organization, any bias would be highlighted, to change.
and the organization would be forced to make the
appropriate corrections. Unfortunately, pay Experts in the field agree that it’s a good practice to
transparency is not widely adopted, because many make the pay information public. Compensation is an
organizations fear
ear that revealing employees' salaries ‘openly guarded secret’ because employees realize it,
will result in too many complaints from disgruntled yet they are expected to guard it. Compensations are
workers. the outcomes of employees’ career trajectories and
salary is the value they have added to themselves along
alon
For ages, discussing salaries with co-workers
workers had been the employment journey. If these are made visible, they
considered as a taboo. Nevertheless,, in reality the will act inspirational for those that are competent but
secrecy surrounding salaries usually benefits the may act as deterrent for others who are only
organization more than its employees. The pay secrecy competitive and not competent.
competent
allows more pay to be allocated to those who negotiate
more aggressively, those who threaten to quit, or those For instance, if employees are aware that their peers
who are friends with the boss. Unconscious bias can have joined from outside with twenty per cent more
@ IJTSRD | Unique Paper ID – IJTSRD40055 | Volume – 5 | Issue – 3 | March-April 2021 Page 976