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 employees are more likely to be engaged and productive.

Pay transparency improves trust between employees and their employer.

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.

Employers: Be ready to talk to employees about what information you chose to share and not share. If you don’t tell your pay story as an employer your employees will make up a story to fill in the silence.

Silence on this topic will cause your employees to not trust your pay decision making process.

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