Multiple influences are creating a move towards greater pay transparency in corporate America these days. Founders Circle Capital explained it this way:
“As the competition for talent heats up and more workers participate in the ‘Great Reshuffle,’ compensation has become a critical business challenge for companies at every growth stage. Beyond the pressure to offer above-market salaries and raises, CHROs are dealing with various internal and external factors, from evolving regulation around pay transparency to determining the best compensation approaches for distributed workforces.” (2022 Compensation Trends: Pay Transparency, Distributed Workforces & Total Rewards, How CHROs are rethinking comp strategy in 2022)
It seems whenever employee complaints reach the threshold of litigation on a large scale in the United States, regulators step in and exert their authority. This is beginning to happen in many business sectors in our country now. Will your industry or company be next?
Business leaders can get ahead of this issue by adopting an approach to compensation rooted in a sound rationale, not just data. Organizations that do seldom hear complaints about pay. Instead, their employees become their biggest advocates.
The good news is this problem is both preventable and solvable. Let's talk about how.
In most cases, employers have more ability than they think to lessen and even eliminate the uncomfortable conversations they are having with their employees about compensation. A compelling employee value proposition, together with a clear pay philosophy and strategy, allows you to frame the nature of the relationship you want to have with your people (a growth partnership)--and the kind of work experience you plan to create for them.
To dive deeper into this subject, read VisionLink’s free report, Why Employees Complain about Compensation…and How to Make Them Stop. It further explains why employees have concerns about their pay and how to create a value proposition that turns them into advocates of your employer brand.