By Rhonda Kurtz, Senior Human Resources Consultant at Hubric Resources

Sound familiar? For leaders who have been caught unprepared, those words may make you cringe just a bit.

Pay transparency and equity are critical topics for employees at all levels of an organization. Yet the complexity of terminology, lack of leader understanding, and suboptimal conversation delivery often results in frustrating the leader and leaving the employee feeling undervalued. Combine that with a rough week and you can bet the employee is going to be scouring LinkedIn throughout the weekend looking for his/her next dream job!

A strong, market-based salary offer is the keystone of an employee’s compensation package. It is a primary reason they will consider moving to another employer. While perks like Friday socials are nice, competitive pay remains the strongest driver of talent attraction and retention. A market-based salary offer gets employees in the door—clear, fair communication keeps them there.

Fair Compensation and Transparency- Simple in Theory, Complex in Practice

• First, determine what level of compensation transparency your organization is targeting. Align your messaging to company values.
• Review current pay data and trends and be prepared to address unjustifiable pay disparities.
• Create your compensation philosophy with care. Make it clear, concise, and ensure that it includes elements such as experience, education, market data, and job performance.
• Explain and communicate “the why” to current employees who may question publishing of salary ranges on internal and external job postings.
• Equip leaders with training and talking points so that they can keep the dialogue going during regular one-on one meetings with their team members. Help them to know when to involve HR for further guidance.

Geographic Talent Pools

Trying to attract candidates across states? If so, New York and New Jersey already have Pay Transparency laws requiring them to post salary ranges. Even if your openings are specific to Pennsylvania, post salary data to optimize your number of qualified candidates. It is estimated that job postings which include salary data can boost applications by up to 50%.

Watchouts

• Be prepared to manage employee expectations and have tough conversations with longer service employees who may still be under the midpoint of the salary range.
• Keep the conversations transparent and direct. Avoid unnecessary jargon.
• Certain generations are more apt to openly discuss their compensation with peers. Determine how you will balance transparency with privacy.

Measuring Success

Utilizing the following metrics may help you assess where you have gained ground and where you have more work to do.

• Employee retention and turnover rates
• Candidate acceptance rates
• Compa Ratio comparisons
• Average promotional increases

Clear, fair compensation practices reduce turnover, boost engagement, and simplify recruitment. By prioritizing transparency and equity, organizations minimize misunderstandings and foster trust. The result? A stronger workforce, improved retention, and a reputation that attracts the best candidates.

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