Our 2023 Pay Transparency Survey reveals that employee reactions and concerns about manager effectiveness were two of the biggest factors holding back organisations from providing increased pay transparency.
Two-thirds of respondents believe increased communications will raise questions from employees and managers – a fair conclusion. New information and data will generate a reaction from your people based on connections they make between the data and their own personal circumstances. Even in a best-case scenario where pay is consistently determined by a set of objective criteria and all roles are paid within a competitive range, subjectivity can creep in. After all, how many of us believe we perform above and beyond the requirements of our role?
70% of organisations are planning to communicate pay ranges on an individual basis
But sidestepping seemingly difficult conversations on pay is no longer an option. Our survey findings suggest that, globally, more than 70% of organisations are planning to communicate pay ranges on an individual basis (if they aren’t already). The demand for pay transparency is accelerating due to evolving global legislation alongside talent, shareholder, and consumer expectations.
The question is not if, but how will you prepare for greater pay transparency.
Better, more transparent pay conversations start here:
The fact is you will have to put more pay program information in your employees’ hands.
How to meet pay transparency demands and advance fair pay
2023 Pay Transparency Survey – Global executive summary
Next steps – You won’t be alone
Many organisations will need help from a partner from start to finish. Choosing an industry expert to work with on pay transparency, both the data analysis and communication, will ensure greater confidence around this changing landscape.
WTW has decades of experience guiding organisations on the best way to approach pay equity and transparency, planning and implementing pay communication strategies, and providing the right tools to complement the organization’s objectives. We cover these priorities through a series of workshops with clients. We gather stakeholders across rewards, HR, diversity equity and inclusion, environmental social and governance and wider leadership teams to ensure they can be confident on pay, and ready for transparency.
Talk to us today about where you are on the journey already, and how we might help you communicate with clarity and confidence on pay.
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