Page 17 - Appreciating Organization's Biggest Assets

noticeable negative consequences on
gender wage gaps and job progress,
gender gaps expand as women age.
Parental leave, official childcare,
flexible work schedules, programs
to increase pay transparency, and
gender audits are all policies that
can help close gender inequalities
in the labor market. However, their
efficacy depends on workplace
cultures and design. When gender
wage discrepancies exist in the Image Source: Monster Salary Index
workplace, pay transparency gives Additionally, as with BBC and
a somewhat easy and obvious way Google, public knowledge of
to spot them and take appropriate pay disparity at businesses with
action. Due to the rising demand more covert pay communication
for pay transparency among new procedures can substantially harm
job applicants, pay transparency those businesses’ reputations.
helps employers recruit and keep Finally, research suggests that
talent. Employees, especially pay transparency may have
younger ones, may be more likely some significant advantages for
to leave an organization within six employees and their employers,
months if the process is opaque, at least in the near run. For
claims PayScale. Another reason is instance, pay transparency has
that businesses that adhere to the been demonstrated to improve
necessary compliance standards individual task performance and
for transparency may avoid legal positively affect employees’ views
repercussions. of fairness, trust, and job happiness.
The compensation strategy of
pay transparency aims to increase
talent attraction and retention.
Pay transparency has the advantage
of forcing companies to create a
thoughtful, data-driven strategy
for compensation that is acceptable
to employees and proactive rather
than reactive. Pay transparency
has been demonstrated to improve

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