Create pay transparency involves more than publishing employee salaries. This slideshare looks at the different stages of pay transparency and what may be right for your organization.

2. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Rusty Lindquist
V P O F H R I N S I G H T S A T
B A M B O O H R
Mykkah Herner
M O D E R N C O M P E N S A T I O N
E V A N G E L I S T A T P A Y S C A L E

3. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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• Pay Transparency Matters
• Defining Transparency
• The Transparency Spectrum
• Moving to Greater Transparency
• Immediate Actions
Agenda

4. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Pay Transparency
gets everyone in the same
boat, paddling in the
same direction.

5. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Why Would Anybody
be More Transparent
about Pay?
Pay Transparency
Trust
Better Business
Outcomes!
Engagement

6. Employees who perceive a ‘fair and
transparent pay practice’have lower
intent to leave and higher satisfaction
PERCENT OF
RESPONSES
LOW AVERAGE HIGH
50% 31% 19%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
1 2 3 4&5
% Responses with Intent to Leave % Responses with High Satsifaction

7. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Workforce Demographics…

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… are changing

9. Everybody’s
doing it…

10. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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...whether they want to or not
• CEO to worker ratios
• 990s
• Say on Pay

11. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Defining Transparency
Defining Transparency

12. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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What are we being
transparent about?
• Pay Philosophy
• Pay Strategy
• Pay Practices
• Market Studies
• Pay Rates

13. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Pay Philosophy

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• Defining the competition
• Aiming to meet or exceed the competition
• Deciding what matters
• Acknowledging various segments
Pay Strategy

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Pay Practices
• Have a plan
• Jobs have grade assignments
• Range minimums / Range
maximums
• Increase process / cycle
• Budget process / cycle

16. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Market Studies

17. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Salary Rates

18. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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The Transparency Spectrum

19. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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1. Only own pay

21. • Philosophy shared with managers
• High-level strategy shared with managers
• Plan shared with managers
• Manager and employee discuss employee’s pay
2. Manager & Employee
Talk About Pay

22. 3. Company Pay Philosophy
• Philosophy shared with employees
• Strategy shared with managers
• Plan shared with employees; ranges shared with
employees and managers
• Do a market study
• Manager and employee discuss employee’s pay

23. 4. Market Study & Comp Processes known
• Philosophy explained to employees
• High-level strategy shared with employees; full strategy shared
with managers
• Managers know all ranges to their level; employees know ranges
in their path and how to advance
• Market study provider known; employee to market results known
by employee
• Manager and employee discuss employee’s pay

24. 5. Managers Trained to Talk Pay
• Philosophy explained to employees
• High-level strategy shared with employees; full strategy
shared with managers
• Managers know all ranges to their level; employees
know ranges in their path and how to advance
• Company wide results known; Employee to market
results known by employee
• Manager and employee discuss employee pay well

25. • Philosophy explained to employees
• Full strategy shared with employees
• All ranges shared with employees; budget and
increase process / cycle known
• Department-wide results known
• Manager and employee discuss employee pay well
6. Published Ranges & Grades

26. • Philosophy explained to employees
• Full strategy shared with employees
• All ranges shared with employees; budget
and increase process / cycle known
• Employee to market results shared
• Everybody knows everybody’s pay
7. Everybody Knows Your Salary

27. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Gartner Hype CycleVISIBILITY
TIME / MATURITY
Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of
Enlightenment
Plateau of Productivity

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Adoption CurveVISIBILITY
INNOVATORS
EARLY
ADOPTERS
EARLY
MAJORITY
LATE
MAJORITY
LAGGARDS
Chasm of Wants

29. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Moving to greater
transparency

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• Explain what transparency is (and isn’t)
• Link transparency with results that matter
Gain executive support

31. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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• Provide information about the business, rationale for
increasing communication, and tools for success
• Expect more to get more
• No really, train them on communication
Train Managers

32. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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• What’s the makeup of your workforce?
• Are they ready for more transparency?
• Do they want it?
Assess Workforce

33. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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Get clear about roles

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Develop a plan

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Functional Transparency

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Immediate Actions
• Assess your workforce
• Educate yourself further about transparency
• Notice what you already do in your org
• Think about what “pushing the envelope”
means to you
• Begin talking with your executives

37. C R E A T I N G T R A N S P A R E N C Y I N T H E W O R K P L A C E
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