CASE STUDY OF COMPENSATION MANAGEMENT

ON

HOW SHOULD ORGANISATION DRAW THE LINE ON

PAY TRANSPARENCY?

PRESENTED BY: ERA CHAUDHARY

(35221303918)
WHAT IS PAY TRANSPARENCY?

 Pay Transparency is the practice of providing clear insight as to how much one is
paid.

 Pay transparency or employee-led transparency, or employees being free to

discuss their compensation with one another.

 Being open and transparent about your pay practices and providing information
about the pay process and how decisions are made is in the best interest of both
the organization and its employees.
DIFFERENCE BETWEEN:
 Disclosing Pay Range
• It can improve morale, reduce turnover and
possibly reduce litigation.
• It allows employees to get a clear idea about
where they are within their compensation
band.
 Individual Pay Range
• It is the practice of having an open
book of compensation data could lead
to a different method in solving
certain situations.
• It would eliminate a source of
distraction and would do more to
eliminate gender and racial pay
inequity than any other action.
HOW SHOULD ORGANIZATION DRAW
THE LINE ON PAY TRANSPARENCY?
 By increasing fairness to employees and reap many of the benefits of pay
transparency.

 Talking about pays for employees and employers.

 By providing accurate and valuable information about each employee’s pay

changes and total compensation.
 By desire to attract and retain a particular employee.
CASE FOR SHARING:

 Research has shown that information-sharing can aid innovation, foster trust, and
contribute to an organization’s agility in a fast moving competitive landscape.

 It also can build cohesion among employees and provide them a shared sense of
mission.
QUESTIONS FOR DISCUSSIONS:-
SHOULD COMPENSATION DATA BE
SHARED INSIDE ORGANIZATIONS?

 The compensation should be fairly based on job responsibilities, productivity,

job performance experiences, skills, education and so on, however more
productivity lead to get more compensations.

 Employee compensation should be an open issue in organizations so as to act as

a source of direction and motivation for employees in the sense that they know
exactly where they lie.
ON WHAT SHOULD A DECISION DEPEND?

 The decision should be depend on performance rankings, which hint towards a

person’s paycheck.

 In that situation, openly discussing pay could encourage teams to share best
practices and drive them to get better.

 It could help employees to know what they except as they move up within an
organization.
HOW FAR DOWN THE ORGANIZATION
SHOULD SUCH TRANSPARENCY EXTEND?
 COMPANY-LEVEL:  MANAGERIAL-LEVEL:
• Establish your core values. • Open door policy
• Set up open communication • Regular meetings on company/team
channels. performance.
• Clear and honest communication.
 EMPLOYEE-LEVEL:  CUSTOMER/SUPPLIER LEVEL:

• Open floor plan. • Have digital systems that suppliers can

also access.
• Regular and honest two-way
communication.
SUGGESTIONS:

 Transparency is an essential characteristic of any good organization.

 It helps to maintain a good work environment and brand image.

 Transparency helps to maintain practices at all levels.

 Transparency should setup an open communication channels.

THANK YOU…