85% of creative agencies offer pay transparency – but what are the advantages of an open salary policy?
In Canada’s creative industry, most hiring managers are opting to be transparent about compensation – and their honesty is paying off, they say.
The majority of hiring managers (85%) in the advertising and marketing profession are offering some degree of pay transparency, according to a survey by staffing firm The Creative Group.
- 27% of organizations allow for full transparency
- 33% – near full transparency
- 25% – partial transparency
- 15% – no transparency
Full transparency refers to the practice of disclosing the salaries for all employees to people within and outside the organization, while near full transparency provides the information only to people within the company. Partial transparency, on the other hand, opens salary data to the public but only for select positions. It does not associate the data with specific employees.
Implementing an open salary policy also has its benefits, hiring managers report.
- 26% claim pay transparency increases team productivity
- 25% – pay transparency creates an atmosphere of trust and collaboration
- 21% – pay transparency boosts recruitment and retention
- 15% – pay transparency helps close the wage gap
Asked whether they would be comfortable with disclosing their own salary:
- 72% say they are comfortable providing the information to their colleagues
- 62% say they are comfortable providing the information to their direct reports
“Today’s job seekers do their research, and many are armed with a solid understanding of local salary trends and pay expectations,” said Deborah Bottineau, district director for The Creative Group.
“Offering compensation visibility can help businesses promote a more attractive work culture of fairness and trust and also give their staff a better sense of what they have to work toward ― which can encourage professional growth and improved productivity.”
But regardless of their stance on pay transparency, employers need to keep pace with industry rates, Bottineau said. “Regularly benchmarking salaries can help companies build packages that attract highly skilled workers and keep current staff motivated and engaged.”