Eko Consulting Ltd will share our latest thinking in our monthly blog. We will cover matters of topical and practical interest to those interested in developing themselves and their organisations.

Over Half Of Workers Support ‘Full Pay Transparency’

One dispute that can be banded your way after taking business consulting courses in Brighton is one of pay, especially if you operate in a company that does not have clear and set pay bands for its staff. If an employee discovers that colleagues at a similar level have a higher salary, without clear reasons, then this can certainly lead to conflict with employers.

Pay is always a difficult conversation for managers, especially those who operate under strict budgets, but how would you feel about full pay transparency within your workforce as a solution to bring the conversation out from the shadows and into the light?

In a recent study by job site Indeed, it was revealed that over half of workers in the UK are in favour of the idea within their workplace, according to Employee Benefits. So let’s look at some of the pros, and pitfalls, that come with introducing such a scheme into your business from

First up, an issue of pay gaps. Where there are discrepancies between pay for jobs at a similar level, it’s important that there’s an explanation of why that is the case. However, with issues such as gender and race pay gaps still institutionalised in many industries, full transparency on salaries will undoubtedly help close up the spaces between. For employers, it’s a question of your intentions – if you want to close pay gaps, and be seen to do so, transparency is a good way forward. It helps arm employees the knowledge to challenge – if a worker isn’t aware that co-workers earn more, how can they make the case that they should do so? However as there are very few instances of full pay transparency in workplaces, it’s unclear as to whether pay transparency would actually equate to pay equality.

Pay equality is going to continue to be a big thing going forward, so getting ahead of the game and getting in control of the narrative could be a good idea. If you don’t, another way will come to the forefront in time, likely from a third party, and the story they tell of your pay may only be half formed.

The fear that comes with pay transparency is that it may be harder to hire and retain staff. As much as you want and need to value your staff, for the company to operate at its maximum profit, you’re looking to get the best talent for the lowest cost. Ultimately, this may mean you can hire fewer staff within a tight budget. If your transparency goes beyond the four walls of your business too, it gives other companies the ability to offer the optimum salaries to poach talent.

It also risks pitching employees against each other. Performance in some professions is harder to measure in concrete figures than others, and everyone would like to assume they are above average in these stakes. Full transparency works in a way to rank workers where pay differences are apparent, which could cause further conflict.


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