According to WorldatWork’s 2020 Pay Transparency Study, 67% of organizations in 2020 now view pay transparency as increasingly important. However, the report, which was conducted with underwriting support by Mercer, shows that only 14% of organizations are giving pay transparency more than a “moderate” level of attention.
This disconnect between acknowledgement and action provides an opportunity for organizations. Given the “new normal” of pay transparency in modern business, now is the time to go one step further and put your pay transparency story into action in a way that impacts employee experience.
The business case for pay transparency covers three distinct areas:
Yet, despite these clear advantages, pay transparency isn’t always culturally easy for companies. In fact, it can often be quite structurally difficult. In order to continue to attract and keep top talent — and remain compliant with increasing legislation in this area — companies must take the necessary steps to create organizational transparency through process and culture change.
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With COVID-19 shaping the interim norm for companies in 2020, many organizations have become more transparent about their pay practices in response to the global pandemic. Pay practice responses vary by company type and industry – for example, essential stores such as grocery stores have increased hourly wages, while some retailers whose storefronts have closed are implementing tiered pay cuts depending on job level. The table gives some examples of how companies immediately and transparently communicated pay actions.