When an employer decides to be more open and transparent about their pay decisions, the first step is to communicate their pay or rewards philosophy. Here is an example:

“Company ABC is committed to aligning total compensation opportunity to the external market which is defined as what other competitors for talent are paying for substantially similar work. Our compensation philosophy is designed to attract, engage, and retain talented employees who support the organization’s mission and values and drive our success. Compensation is a tool to support and reinforce our values as well as our strategy, operational, and financial needs. We strive to communicate openly about the goals of the organization and compensation decisions. We administer our rewards programs in a manner that is consistent and free of discrimination. Our compensation decision making processes are intended to be transparent and simple, so all employees understand how decisions are made and the outcomes.”

The second step is to go deeper and share what pay decisions are based on.

“At Company ABC, we focus on the following factors when making a pay decision: performance, relevant work experience, training, education, work location, seniority, skills, knowledge, and abilities.”

If you need help writing your pay philosophy or developing your pay transparency communications plan, let’s talk. You can book a free 15-minute call with this link. https://go.oncehub.com/DLcall

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