Discussing pay transparency
This week, the team reflect on a recent article released by MHR on pay transparency and how it impacts employers and employees.
What's the difference between pay equity and transparency
Pay equity
Pay equity refers to the practice of ensuring that employees receive fair and equal compensation for work of equal value, regardless of gender, race, or other characteristics. It specifically focuses on eliminating wage disparities that stem from discrimination or systemic inequality. Pay equity often involves:
Evaluating job roles and responsibilities to determine fair compensation levels.
Ensuring comparable pay for comparable work, sometimes referred to as “equal pay for equal work” or “equal pay for work of equal value.”
Analysing pay gaps within the organisation, such as the gender pay gap or racial pay gap and taking corrective action to close these gaps.
Achieving pay equity often requires organisations to conduct regular audits and analyses of pay practices and outcomes to identify disparities and address any unjustified differences in pay.
Pay Transparency
Pay transparency is the practice of openly sharing information about pay practices, structures, or individual compensation levels within an organization. It is primarily about making pay information accessible and clear to employees and often involves:
Disclosing salary ranges for positions or job levels, so employees and applicants know what they can expect for specific roles.
Publishing pay data or salary ranges in job postings, which has become a legal requirement in some regions.
Providing clear criteria for raises, promotions, or bonuses so employees understand how pay decisions are made.
Offering tools or reports that show organisational pay data, such as average pay by role, department, or demographic group.
Pay transparency can help build trust within an organisation, reduce bias, and hold companies accountable for achieving pay equity by making compensation practices clear and visible.
What does this mean for employees and businesses?
Our recent blog covers everything you need to know regarding legislation updates, how these support employers and what businesses need to consider when preparing for changings.
