As an employer, what are you best known for?
Maybe it’s the unique product you make or service you provide. Maybe it’s your really cool office space, convenient location, or the work/life balance you provide. Maybe it’s your competitive wages or awesome perks. Or all of the above.
But what about salary transparency? Increasingly, your progressive mindset in this regard is becoming a vital recruitment and retention tool. Along with all the other benefits outlined in your employee value proposition, now is the time to reassess where you stand and to incorporate this transparency into your strategy and communications.
In an increasing number of jurisdictions, salary transparency isn’t just the right thing to do, it’s the law. California’s pay transparency law took effect January 1 and New York’s law goes into effect in September. There are numerous others, so be aware of current legislation where your company operates.
Additional benefits include:
- Attracting the right talent: Candidates will know whether their pay expectations are aligned with what you’re offering early on, so they don’t waste their time or yours applying for positions that are the wrong fit.
- Enhancing your candidate experience: Research has shown that candidates’ positive perception of employers’ fairness increases 30 percent when they’re informed of salary ranges without requesting this information.
- Building trust and engagement among your employees: Results of another study reinforce a direct connection: Employees who view their pay as inequitable have a 15 percent lower intent to stay with their employers and are 13 percent less engaged at work.
- Achieving diversity and equality: Adopting a salary transparency policy encourages women and minorities to work for companies that embrace pay equity. Diverse workforces tend to have a more open culture, higher levels of employee satisfaction, and enhanced productivity levels.
How to Make It Happen
Start making progress on salary transparency by taking these steps:
- Make a plan. Compare your current level of pay transparency to your ideal, then map out a blueprint for developing, implementing and communicating any necessary changes. This includes ensuring that all key stakeholders are on board.
- Update your pay ranges as necessary. As part of this step, it’s a good idea to run a pay analysis against updated ranges to ensure internal equity for every existing employee.
- Roll out your policy. After your pay transparency has been signed off on but before it takes effect, announce it to all team members. Answer their questions and support your managers through the transition as they also address employee concerns.
- Keep a pulse on how it’s going. Monitor offer acceptance rates, employee sentiment and similar factors to you can keep your policy robust and current over time.
Fine tuning salary transparency and every aspect of your employer branding strategy is what the recruitment experts at Haley Marketing do best. That, along with making all your recruitment marketing initiatives more affordable, outstanding, and top of mind. Contact us today to learn more and schedule a free 30-minute focus call.