Bo Vialle-Derksen’s Post

The Path to #Pay #Transparency Here are some steps that organizations can take to move towards pay transparency: -Evaluate the Current Compensation Structure: Begin by conducting a thorough review of the organization's current compensation structure. This includes examining pay scales, salary ranges, and any existing pay transparency policies or practices. Identify any gaps or areas for improvement. -Establish Clear Compensation Philosophy: Develop a clear and well-defined compensation philosophy that outlines the organization's approach to pay. This philosophy should align with the organization's values and business objectives. It should also emphasize fairness, equity, and transparency in compensation decisions. -Conduct Pay Equity Analysis: Conduct a comprehensive pay equity analysis to identify any disparities or inequities in compensation. This analysis should consider factors such as gender and other protected characteristics. Address any identified disparities and take steps to ensure fair and equitable pay practices. -Define Compensation Metrics: Establish clear and measurable compensation metrics that can be used to evaluate and track pay transparency efforts. This may include metrics such as the gender pay gap, pay ratio, or the percentage of employees who have access to compensation information. -Communicate Compensation Information: Develop a communication strategy to share compensation information with employees. This may involve providing employees with access to salary ranges, pay scales, and information about how pay decisions are made. Consider using technology platforms or tools to facilitate easy access to this information. -Train Managers and HR Professionals: Provide training and education to managers and HR professionals on pay transparency and fair compensation practices. This will help ensure that they have the knowledge and skills to effectively communicate and implement transparent pay practices. -Address Privacy and Confidentiality Concerns: Pay transparency can raise privacy and confidentiality concerns. Develop policies and procedures to address these concerns and ensure that employee privacy is protected. Consider providing options for employees to discuss their compensation in a confidential and secure manner. -Monitor and Evaluate: Continuously monitor and evaluate the effectiveness of pay transparency efforts. Collect feedback from employees and make adjustments as needed. Regularly review compensation practices to ensure they align with the organization's compensation philosophy and legal requirements. It's important to note that the path to pay transparency may not be a one-size-fits-all approach. Organizations should consider their unique circumstances and consult with legal and HR professionals to ensure compliance with applicable laws and regulations.

The key is to have talent acquisition professionals and hiring/people managers fully educated and capable of communicating the basic compensation philosophy of the organization and how it is represented in individual compensation. This should be a basic requirement for all organizational managers and not just a "pay transparency" check box. Consider a tool for people managers and their business partners to conpetently engage in conversations about employee compensation with both candidates and current employees. The concerns about variable pay can be customized in a standard "blurb" with every posting which alludes to the components of an employee's total pay. As always, I suggest organizations not overly promote the chimera of "equity" so often discussed in start-ups because too often the reality does not meet the expectations. My unpopular, but realistic opinion of the over reliance on equity in the technology industries. 😉

Good insights and discussion points.

Pay transparency is more than just numbers. Learn how top companies are enhancing their recruitment with comprehensive #compensation communication, including equity and bonuses. Dive into this WorldatWork article: https://bit.ly/47vibUl

Pay transparency is increasingly becoming a norm in the U.S., driven by legislation and a societal push for equity. Understanding and implementing pay transparency can benefit business owners significantly, enhancing employee trust and improving recruitment and retention. This practice involves disclosing salary ranges in job postings, providing pay scale information upon request, and maintaining transparent internal pay policies. #BusinessOwners #Pay #PayTransparency https://lnkd.in/eNSpjqS3

Pay transparency is becoming increasingly common nowadays. As with any new trend, there are advantages and disadvantages to consider when deciding how to implement it in your workplace. Transparency fosters trust and attracts high-quality employees but can also lead to wage compression or legal complications. Weigh the pros and cons carefully to determine how pay transparency will function in your organization. #HumanCapital #PayTransparency #Insperity https://lnkd.in/eTg9xxvf

Pay transparency isn’t something out on a distant horizon, it is already here, and it’s here to stay. Beyond the legal requirements imposed by state and local legislation, pay transparency will continue to increase because the labor market has changed: employees and job seekers expect transparency around pay.   Read Beth Ostrem's insights on pay transparency - including 5 strategic steps to take towards pay transparency. #paytransparency #compensationstrategy https://lnkd.in/djeHiqFu

Several steps may be needed to prepare for pay transparency in the EU, such as: • Establish a point-factor system to evaluate jobs in a way that is free of gender bias. • Document promotion and progression criteria. • Build a pay structure with ranges for all roles. • Prepare gender pay gap reporting. Let's say you're US-headquartered and you've been title-matching, data flipping, bickering or arm-wrestling to determine compensation offers. As this article from Aon states, "Prepare your firm now for potential implications and opportunities." It may help to define the work as an opportunity now, in 2024, with many potential implications later, if it's pushed off until 2026. The EU is essentially requiring best practice implementation, so why wait? Organizations that have this done early can: • Budget in advance for any adjustments to bring employees into ranges. • Eliminate any pay gaps. • Build confidence throughout HR and Recruitment with new processes to follow and new vocabularies to discuss work and pay. • Establish marketing strategies to capitalize on their advantages while competitors scramble. • Expect increased applications for open roles, better employee feedback scores, and reduced turnover.

Pay transparency should be renamed pay clarity. Transparency is about access to the facts. Clarity is about understanding the facts. Employees want to know that pay decisions are made fairly and there’s a consistent process & approach. A well communicated compensation program answers the majority of employees’ pay related questions & facilitates comp conversations between managers & employees. Include the following in your communications: 🔎 *What* is your company’s compensation philosophy? 🚧 *How* are salary ranges & equity guidelines are established? e.g., What reliable market data source is used & how are pay decisions are made? 👤 *Who* makes pay & promotion decisions? e.g., Managers work w/ executives to review various data points (i.e., market data, performance) when making pay salary increase & any equity refresh grant decisions. Promotions are calibrated by People & functional leaders to make sure the right people are being promoted. 📆 *When* are pay & promotion decisions are made? e.g., Comp Reviews are held every September for employees w/ 1+ year of service. During bi-annual reviews (every March and September), promotions are gathered & reviewed/approved.

To develop your pay transparency communication strategy, share your organization's story. Be transparent about methodologies, factors considered for pay adjustments, and objective criteria in place. What advice would you give about discussing pay transparency? #PayTransparency #WagesAndSalaries #Communication https://lnkd.in/eG-imVka