22% said they've made salary information for each role available to all current employees
Majority of employers (81%) across Australia believe that they are being transparent about pay with current staff, according to a new report from Robert Half.
In a survey among 300 hiring managers, 22% said they have made their salary information for each role available to all current employees. This transparency includes being open about salary bands and the process to achieve those bands, as well as outlining exact salaries for each role within their organisation.
For another 70% of organisations surveyed, they said pay information is shared even to job candidates.
"During the hiring process, pay transparency can help build trust and make salary negotiations easier for both the employer and applicant," said Nicole Gorton, director at Robert Half, in a media release. "For existing staff, it empowers them with the knowledge of their true worth, but it also demonstrates a commitment to fairness and equity, ultimately resulting in a culture of open communication and mutual respect."
However, 26% of the respondents said they share salary information only with their leaders, while 13% are not being transparent about pay.
"A lack of transparency can brew employee resentment and ultimately lead to resignations," Gorton said.
Beating gender pay gap
Pay transparency has been pushed as one of the measures to combat gender pay gaps in the workplace.
In Australia, men are making $253 more every week or $13,183 every year compared to their female counterparts at work, according to the Workplace Gender Equality Agency (WGEA).
This is costing the Australian economy $51.8 billion annually, it added.
"The dollars and cents represent the value placed on their [women's] skills, labour, and time. It represents missing money that could be spent to meet everyday costs of living," WGEA said in a media release.
According to Robert Half, employers have been taking on the following actions to increase pay transparency as businesses continue to close the gender pay gap:
- Listing the salary range in a job advertisement (49%)
- Outlining clear rationale and process to employees for how salaries are set (40%)
- Providing training to managers on how to have transparent salary conversations with their teams (25%)
"Pay transparency is known to foster trust and promote fairness in the workplace. The simple truth is that people want to know they are being compensated reasonably, and having clear communication as to how pay rates are determined can help relieve any concerns employees have about their salary," Gorton said.
According to Robert Half, employers can be transparent on pay by:
- Defining what it means to be transparent. Businesses need to clearly define what pay transparency looks like in their organisation and be clear on how salary bands are set.
- Staying accountable. Businesses need to be prepared to address any concerns on their pay transparency policy.
- Regularly review and update salaries. Employers need to get a current and realistic view of the compensation landscape amid rapidly changing salary ranges in the market.
Australia's Equal Pay Day will be on August 25, 2023, according to WGEA. This marks the 56 additional days from the end of the financial year that women must work to earn the same average pay that men are receiving.
To address the problem of unequal pay, the Australian government will require starting early 2024 employers with over 100 employees to publish their gender pay gaps.
