Trust is the firm belief in the reliability, truth, ability, or strength of someone or something. It is the foundation of healthy relationships. And it is foundational to creating a workplace culture that supports high performing employees.

Employers, who choose to be transparent about their pay-related decisions and processes, have an advantage. They are better able to attract and retain talent. And their employers are more likely to be engaged and productive.

Guiding Principles:

Document pay processes and consistently follow them. Consistent unbiased decision making on base salaries and incentives is the goal.
Communicating pay processes regularly to employees shows you have nothing to hide.
Go beyond pay and be transparent about other workplace processes like what it takes to get a promotion, how potential is assessed, and your calibration of performance feedback and ratings.
Focus intentionally on your new hire pay determination process. Ensure it considers your pay equity boundaries and is externally competitive.
Do a pay equity audit annually. Fix the inequities and budget for them. Look for and solve the root cause issues.

Pay transparency is a mindset as well as an action. It is an intentional focus and a courageous act.

Be ready to talk about what you chose not to share or talk about in the past with employees. If you don’t tell your pay story your employees will make up a story to fill in the silence.

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