Pay transparency: 3 steps to take now
With seven states and some municipalities (most recently, New York City) beginning to require salary ranges on job postings, organizations need to prepare for the change and plan how they will comply.
Here are the steps to take now:
Educate your C-Suite, leaders, front-line supervisors – and your current employee base – about your compensation strategy, how it is determined, and how the market range and rate are established. Your goal is to help them understand and ensure they’re able to explain “total compensation” beyond the base salary they receive, taking into account the benefits and other elements that make up their total compensation.
Encourage employees to have open conversation with their leaders and ask questions to fully understand their compensation and how to increase it in the future. For example, if an entry-level employee wants to make more, their leaders should be adept in showing them options for growth – and supporting them with education, certification or projects that will help them get there.
Eliminate policies around not talking about compensation and replace them with open communication, transparency and opportunities to advance. Change the conversation to a positive one where your employees see the possibilities and have clear paths to the pay level they are seeking.
As far as the hiring process goes, if you are asking them their pay rate – I think you should at the very least, provide your range.
The move for pay transparency is gaining momentum across the country. Now’s the time to get your organization ready for the change.