Pay Transparency

Trending: Pay Transparency

Trying to find an appropriate balance when discussing how you determine pay and what an employee’s earning potential is, can be tough. As we continue to see concerns about wage gaps, pay inequities and miscommunications, organizations have an excellent opportunity to share more information about how compensation programs are designed and administered to help employees understand the process and feel they are paid fairly. Today’s hyper-competitive work environment demands an increased level of access to pay information and a solid pay communication strategy. Top talent often demands that employers are more transparent in their pay communication with employees.

What’s behind the push for pay transparency?

When employers are transparent about pay philosophies and structures, they show they are committed to their employees.  It shows they care about getting pay right, and employees feel confident that they are paid competitively for the role.

What are the pros and cons of pay transparency?


Builds Trust: Transparency about how compensation is determined can eliminate confusion and incorrect assumptions and in turn foster a culture of trust.

Increased Engagement: Employees are more likely to feel they are paid fairly if they understand how pay decisions are made, and often the way people feel about their compensation is linked directly to their level of engagement at work.

Enhanced Performance: Greater transparency leads to meaningful discussions around career path and performance. This allows employees to have better conversations with their manager about how they can move forward in their career. Employees that feel cared for are more engaged and tend to perform at a higher level.


Drama & Distraction: It’s not necessarily a good idea to share exact amounts that employees make as this can lead to drama and distraction, but employees should know their earning potential and feel the value of their position to the organization.

How can we help?

Compensation Works has the expertise and bandwidth to support your organizations’ unique communication, culture, compensation structure, and benefits needs. We customize our offerings to support what you need when you need it. We partner with your team to provide meaningful feedback, recommendations, and observations. We add bench strength and a unique perspective to your busy team. We help our clients by crafting impactful strategies that inform, engage and inspire and most importantly, retain your team.