HiBob reveals vital first steps to creating a culture of openness and trust
This article was produced in partnership with HiBob
Say ‘hi’ to Bob - the modern HR platform for a modern business. HiBob is on a mission to transform how organizations operate in the modern world of work. Leading the way for the future workplace, the platform offers resilient, agile technology that wraps all the complexities of HR processes into a game-changing, user-friendly tool that touches every employee across the business.
If you want to attract and retain top talent, the words “competitive salary” on your job ad will no longer do the trick. In an environment where employees and job seekers increasingly value pay transparency, equity and fairness, organisations are having to rethink the way they approach discussing pay.
In this latest guide, HiBob notes that being open about your approach to decision-making around pay is a critical step to creating trust with your people. This means moving away from the traditionally hush-hush culture around salaries, and instead building a pay philosophy that puts people first.
In Australia, recent regulations have made promoting pay transparency all the more vital. The Workplace Gender Equality Agency (WGEA) published median gender pay gaps for private sector employers with 100+ employees in February 2024 – so if you clearly have persistent pay inequality, there is no hiding it.
So, where do organisations begin, and how do they know what level of pay transparency is right for them?
Having a core compensation philosophy is a vital first step. It should guide how everyone approaches pay decisions, ensuring a clear and transparent compensation practice.
A core compensation philosophy is an essential tool for decision-makers, such as recruiters and hiring managers, when making decisions around compensation during the hiring process. It also provides a framework for HR managers to lean on when making decisions around employee lifecycle events, like promotions, raises, and regular compensation cycles.
Pay gap analyst Michelle Gyimah suggests that businesses look at a five-point transparency scale, and decide where they want to sit:
What: Letting team members know their monthly salaries
How: Sharing external salary benchmarking data with your people so they can compare their pay to market rates
Where: Providing a breakdown of salary, benefits and a clear pay range for each team member
Why: Create clear processes for calculating pay, and train managers to communicate about pay regularly
Whoa: A completely open pay system that allows the whole organisation to access information on everyone’s salary or range
Achieving pay transparency goals can start small and doesn’t have to mean making your entire workforce’s salary and benefits information public. Simply encouraging members of your leadership team to have open conversations about pay is a huge step forward, and paves the way for more transparency with more members of your team over time.
Despite all signs pointing to a future of salary transparency, not everyone is prepared. A 2023 survey by Willis Towers Watson revealed that 31% of employers aren’t ready for pay transparency, and 46% are putting off disclosing pay. While the challenges can’t be underestimated, organisations can introduce pay transparency by planning carefully and taking deliberate, practical steps.
First, it’s essential to understand your current pay practices. Conducting a thorough audit will help identify any existing pay disparities, and will ensure that your compensation structures are fair and equitable.
Once you’ve established this baseline, you can create clear and consistent pay structures that outline salary ranges for different positions and levels. These should be based on objective criteria such as skills, experience and performance rather than a candidate's previous salary.
Throughout the process, strong training and clear communication is vital. Organisations should look to educate their employees about pay practices, how salary is determined, and what factors influence pay decisions. Likewise, managers and HR professionals should understand the core principles of pay transparency and be well equipped to handle questions or concerns.
Finally, organisations should encourage open communication and continuously monitor the impact of pay transparency. Regularly reviewing your pay practices will help ensure that they remain as fair and equitable as possible.
Ultimately, pay transparency is more than just a trend – it’s a fundamental shift in how organisations around the world treat pay practices, and is central to creating a culture of trust, attracting top talent and promoting employee satisfaction. With this in mind, HiBob’s powerful HR solution – Bob – has been designed to help organisations get pay transparency right.
Bob helps employers to accurately price jobs, define pay ranges, assess gaps, make smart compensation choices, stay on top of regulations and communicate about pay – all under one roof.
To find out more about HiBob and how they can help your organisation create a transparent, fair and equitable culture, click here.
