Creating Pay Transparency in

the Workplace

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Rusty LindquistV P O F H C M I N S I G H T A N D

T H O U G H T L E A D E R S H I P

Rita PattersonM A N A G E R O F C U S T O M E R

E D U C A T I O N

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• Pay Transparency Matters

• Defining Transparency

• The Transparency Spectrum

• Moving to Greater Transparency

• Immediate Actions

Agenda

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Pay Transparency

gets everyone in the same

boat, paddling in the

same direction.

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Why Would Anybody

be More Transparent

about Pay?

Pay Transparency

Trust

Better Business Outcomes!

Engagement

Employees who perceive a ‘fair and

transparent pay practice’ have lower

intent to leave and higher satisfaction

PERCENT OF RESPONSES

LOW AVERAGE HIGH

50% 31% 19%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

1 2 3 4&5

% Responses with Intent to Leave % Responses with High Satsifaction

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Workforce Demographics…

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… are changing

Everybody’s

doing it…

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...whether they want to or not

• CEO to worker ratios

• 990s

• Say on Pay

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Defining TransparencyDefining Transparency

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What are we being

transparent about?

• Pay Philosophy

• Pay Strategy

• Pay Practices

• Market Studies

• Pay Rates

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Pay Philosophy

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• Defining the competition

• Aiming to meet or exceed the competition

• Deciding what matters

• Acknowledging various segments

Pay Strategy

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Pay Practices

• Have a plan

• Jobs have grade assignments

• Range minimums / Range

maximums

• Increase process / cycle

• Budget process / cycle

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Market Studies

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Salary Rates

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The Transparency Spectrum

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The PayScale Pay Transparency Spectrum

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1. Paycheck“Here’s what you get paid”

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2. Market Data“Here’s how we use market data to set pay”

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3. Comp Plan“Here’s where your pay falls in range”

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4. Culture alignment

“Here’s why we pay like we do”

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5. Open Salary“Here’s everything you want to know about everyone’s pay”

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Gartner Hype CycleV

ISIB

ILIT

Y

TIME / MATURITY

Trigger

Peak of Inflated Expectations

Trough of Disillusionment

Slope of

Enlightenment

Plateau of Productivity

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Adoption CurveV

ISIB

ILIT

Y

INNOVATORSEARLY

ADOPTERS

EARLY

MAJORITY

LATE

MAJORITYLAGGARDS

Chasm of Wants

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Moving to greater

transparency

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• Explain what transparency is (and isn’t)

• Link transparency with results that matter

Gain executive support

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• Provide information about the business, rationale for

increasing communication, and tools for success

• Expect more to get more

• No really, train them on communication

Train Managers

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• What’s the makeup of your workforce?

• Are they ready for more transparency?

• Do they want it?

Assess Workforce

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Get clear about roles

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Develop a plan

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Functional Transparency

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Immediate Actions

• Assess your workforce

• Educate yourself further about transparency

• Notice what you already do in your org

• Think about what “pushing the envelope”

means to you

• Begin talking with your executives

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