financial matters
PAY TRANSPARENCY:
THE LOUDSPEAKER FOR EQUAL PAY By Carmen Drummond
H
istorically, pay transparency has been muted by companies in order to hide unfair pay culture. As more companies move toward pay transparency to address these issues, it can be helpful to examine what pay transparency means for diversity efforts, and whether it can help close the wage gap between genders, races, and other protected classes. What is Pay Transparency? In recent years, companies have been slowly adopting pay transparency. Normalizing open conversation about salary data so that employees know where they stand compared to their peers. While there are many motivations for introducing pay transparency, research shows that reducing inequality within companies is its primary benefit. Employees: Know Where You Stand Without pay transparency, many employees aren’t even aware of how their salaries compare to others in their company. Pay Transparency helps us understand where our employees stand within pay bands, while arming them with the information needed to ask for raises and promotions more effectively. Employees: Find out why you are getting paid less. Most companies have diversity business and recruitment strategies, but they have little effect if employees aren’t aware of it. Salaries are like any other aspect of a business— the key to creating transparency and true equality is understanding why you’re getting paid less than your coworkers. If you find out that you are being discriminated against, confidently approach HR for understanding. If you find out that you are being paid less because of skill gaps, find opportunities to close them.
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Employees: Talk About Pay with Your Colleagues. If pay transparency sounds scary, imagine being the one that is underpaid. When navigating these conversations and approaching leadership be sure to present data that can be supported. It’s time that we get leaders comfortable with uncomfortable conversations. Create a network of advocates and conduct market research. Don’t fall for the traditional company policy that prohibits talks around salary. According to the National Labor Relations Board, under the National Labor Relations Act (NLRA or the Act), “Employees have the right to communicate with other employees at their workplace about their wages.” Employer: Assess the Data There are often whispers in the workplace about how much people are making, with a lot of it concentrating on gender and race. This is where data filled pay transparency makes sense. A workplace culture shift must support and empower diversity efforts, rather than just comparing salaries and hoping it is enough to support a business case for pay equality. Employer: Reduce Unconscious Bias Unconscious bias often impacts who gets promoted, raises, and other rewards. Employees from marginalized groups are often judged more harshly than their peers, even when metrics show that they are outperforming their peers. One method of reducing these biases is through pay transparency, which allows employees to evaluate what colleagues in similar roles make and breaks down salary inequality. If you wish to expand your knowledge and continue the conversation on Pay Transparency, you can check out federal and your local state laws by visiting the National Labor Relations Board at: https://www.nlrb.gov/about-nlrb/rightswe-protect/your-rights/your-rights-to-discuss-wages u WWW.THEBLACKINHR.COM
