Isn’t pay transparency costly for employers?

Yes, there may be costs initially but it can be a cost savings over the long-term.

If you hire an external consultant to guide you through the process, that is a cost. And, of course, you may find inequities that need to be solved and external competitiveness problems.

You will need to train managers in how to respond to questions about pay and the decision-making process.

The benefit of embracing pay transparency is that it forces you to fix pay inequities and drives more consistency in your process and decisions.

This may mean annual pay equity audits or purchasing software to ensure that each pay decision considers the external market and the ever-changing internal equity boundaries.

Employers who are committed to closing the pay gap will embrace pay transparency and the costs. Why?

·       WorldatWork reports the power of pay transparency includes a positive impact on employee retention, engagement, satisfaction, motivation, and attraction.

·       Payscale discovered that the gender wage gap closed completely with increased transparency for 73% of industries and organizations.

·       And transparency supports better business returns: Better revenue, sales, and customer satisfaction.

Employers must commit to doing what’s right over what’s easy. Transparency is the starting point to deliver equity as an outcome.

It is expensive to have an employee leave and make more at another employer vs. paying your people fairly.

Is your business sustainable over the long-term if you choose to pay people unfairly or not competitively?

As more pay transparency and equity laws are passed, the penalties for not being in compliance will increase as well.

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