News 2 min Published: 2023-12-28

3 reasons to invest in pay transparency

Achieving senior management buy-in to pay transparency is a challenge many HR leaders are struggling with. The argument that it’s going to be a legal requirement doesn’t get much enthusiasm. However, Sysarb clients are finding they can achieve success by considering the wider business impact. Here are some of the approaches they’ve shared with us, which have been successful.

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Reason 1: Productivity and retention

We know, and there’s lots of evidence to support this, employees appreciate transparency around pay, most particularly, when it makes clear to them how their pay is determined and reassures them, they are fairly paid. Detailing the factors which make up pay, such as location, relevant experience and skills, helps set the scene, reinforced through explanations of how pay is increased, including annual review and promotion processes.

Combine this with reassurance that a pay equity audit has been conducted by an expert third party, such as Sysarb, and the organisation can build trust, improve retention and reduce anxiety about unfairness. These bring tangible business cost savings through lower staff turnover and loss of productivity.

Reason 2: Cost management

Agreed starting salaries can be an expensive process, especially meeting demands of the perfect candidate once found. However, pay transparency makes it clear, from the outset, what the salary range on offer is. Thereby reducing wasted time in interviewing candidates with excessive expectations and having to find the budget or resources internally to meet these.

Additionally, once there is clarity on equitable pay and any infrastructure around ranges, it makes cost management and HR controlling simpler, efficient and more accurate.

Reason 3: Reinforcing the organisation’s values and culture

Defining what makes the company unique and lifts it above competitors, is what attracts employees to join and remain.  Many companies emphasise integrity and similar attributes in their values. Pay transparency and pay equity provide an opportunity to reinforce these values in a tangible and credible way.

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Contact us if you want to invest in pay transparency

Navigating the complexities of obtaining senior management buy-in for pay transparency is a common challenge faced by HR leaders. The prospect of it becoming a legal requirement often fails to generate enthusiasm. At Sysarb, we understand these hurdles, and our clients have discovered successful pathways by assessing the broader business impact. Connect with us to explore the approaches that have proven effective and learn how we can assist you in overcoming these challenges.

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