There may be some details of your life that you prefer to keep private, but if you work for 1 in 4 employers, your salary isn’t going to be one of them.
Most employers (53 percent), as you may have guessed, aren’t in favor of pay transparency. Nearly half (42 percent) say it can cause jealousy and morale problems, 1 in 3 say it’s an invasion of worker privacy, and about 1 in 5 (19 percent) saying it can lead to equal pay litigation.
Still, nearly half (47 percent) of employers think that openly disclosing worker salary information can be a positive thing. Nearly 1 in 4 (24 percent) say it ensures pay equality while a similar number (23 percent) say it can dispel wrong assumptions.
But what about the employees themselves, you ask? Take a look at the graphic below and you’ll notice that the majority of them don’t really approve of salary transparency. TWEET THIS
What does that mean for you?
For starters, consider the fact that nearly 2 in 3 U.S. workers say they are not currently earning their desired salary.[contextly_auto_sidebar id=”5JoxtNUVK1yEOoMCdyChNGdYpHdx6W37″]
Does that mean you should just rush to pay them more and think that will solve the problem? Not really. A good approach is what Rosemary Haefner — vice president of human resources at CareerBuilder — outlined in a previous post titled “Salary Transparency: Should Salaries Be Made Public?”
“A lot of companies, in their employee surveys, ask, ‘Are you satisfied with your compensation?’ but that’s not a very effective way to address it, because almost everyone will tell you they want to be paid more.” A more effective question to ask, Haefner says, is, “Do you feel decisions around compensation are made with clarity?”
If you want to know how to talk to your employees about compensation, we’ve got some tips. And if you want a tool that can help you determine competitive compensation, look no further than CareerBuilder’s Compensation Portal, part of Supply & Demand. That way you’ll never have to guess whether you’re paying your employees what you should be.
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