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Compensation Cafe: Pay Transparency as One Part of a Larger Culture

By Derek Irvine

Recognize This! – Organizations can benefit from integrating greater pay transparency with aspects of the organizational experience that also share the emphasis on transparency and participation.

Modern organizations seem to be moving towards less structure and more transparency. At times, these shifts are the result of careful and deliberate discussions of leadership teams. At other times, they reflect reactions to external pressure, especially as technology facilitates the open sharing of data and information that was once more closely held. At the confluence of these trends, discussions around pay transparency have become increasingly popular.

As I write in this post over at Compensation Cafe, pay transparency is one aspect of crafting an employee experience that benefits from an overall emphasis on transparency and participation. Here’s how:

…pay transparency is actually one part of a larger culture. A culture of transparency is focused broadly on employee inclusion and involvement, contributing to a positive organizational experience. The discussions encouraged by transparency – whether focused on pay, performance, or other aspects – allow an organization to accurately and collaboratively set expectations and goals. But that is only half of the picture.

The second part of the employee experience is an equal emphasis on closing the loop, recognizing the effort that has gone into meeting or exceeding those goals and expectations. As I go on to note:

The ultimate value for organizations lies in combining pay transparency with mutually reinforcing solutions like recognition into a shared culture. Much like pay, moments of social recognition provide opportunities to discuss performance and reinforce motivation. More importantly, they develop a shared understanding of the behaviors that are valued by the organization, transparently aligning employees to a set of core values, mission, or purpose.

Click through to read the entire post, which covers the pros and cons of pay transparency, as well as how combining multiple solutions can deliver an improved employee experience.

What do you think of pay transparency, as an individual practice and as a piece of your entire experience at work?