The Power of Pay Transparency

Aug 31st, 2023 | Hire Wire

The law is finally catching up with salary conversations. Employers are concerned. No longer can they depend on employees being silent about their compensation as the Federal Pay Transparency Act nationwide requires employers to advertise their salary ranges when posting jobs. Though it may seem unfortunate, there are a lot of other ways that employers build a competitive advantage in this new environment.

Focus on Communication in the Workplace: Employers will now be motivated to communicate company goals and performance metrics. This is the time that employers can use to detail performance goals and issues to ensure every employee is earning what they should be according to their performance.

Intangible benefits matter: In a workplace, according to salary.com employees are motivated if they are paid fairly. Positive manager interactions, career progression plans, and comprehensive benefits will be more valuable in employee retention.

Salary scales can be openly compared: With the Pay Transparency Act employers will be in a stronger position to understand what competitive pay looks like. Additionally, employers can take the time to make better judgements and more detailed hiring budgets.

Pay transparency will garner some positive benefits and will ensure equal pay for equal work. It can also manage to pay inflation in the long run. If you are interested in evaluating your current compensation and bonus structure, please reach out to your TOC Consultant so we can assist you!