By Debbie Bolla
Pay transparency has been making headlines in recent monthsâand is a goodÂ reason our Editor-at-Large Simon Kent reports on the impact of the UKâs genderÂ pay gap reporting regulations in this issueâs cover story Decreasing the Gap.
Pay transparency was also named one of 2019âs top four trends by this yearâsÂ LinkedIn Global Talent Trends survey. In fact, the survey found that 53 per centÂ of talent professionals rate it as very important trend to the future of HR andÂ recruiting. Breaking down the feedback from more than 5,000 professionalsÂ in 35 countries, the survey shows the importance of pay transparency byÂ geography, including Spain (64 per cent); France (50 per cent); UK (50 per cent);Â and northern Europe (44 per cent).
âThere can be no doubt that in combination with other developments, mostÂ notably increasingly severe skills shortages, higher minimum wage levels, andÂ #MeToo, gender pay reporting has helped to push gender and wider equalityÂ and diversity issues up the employer agenda to the board level,â says DuncanÂ Brown, head of HR consultancy at the Institute of Employment Studies. âTheÂ research evidence is that it takes multiple initiatives across HR policies sustainedÂ over a number of years to seriously reduce gender pay gaps.â
The Global Talent Trends survey recommends these seven best practices:
- Conduct an internal audit to use as a benchmark and to identify payÂ disparities across gender, race, and those in similar roles.
- Determine the best pay transparency policy for the organisation and culture.
- Gather employee feedback through surveys, individual interviews, and townÂ halls.
- Outline the factors that determine an employeeâs pay rate.
- Train managers about pay practices and ways to communicate them.
- Determine a timeframe that is manageable to roll-out the programme.
- Communicate the policy and align it to company core values if appropriate.
Armed with these strategies, organisations can continue to move in the rightÂ direction of pay equality.