Pay Transparency
(No, it’s not just about posting everyone’s salary online!)
I was recently asked to create a session on Pay Transparency for a sector event. This prep got me thinking that it’s a topic that we all need to be talking more about. When I broach the topic with some clients, I can see they get twitchy!
“That would upset a lot of people!”
(Discontentment doesn’t come from transparency, it comes from unfairness.)“Are we supposed to publish what everyone earns?”
(Not necessarily! It’s about creating clarity and giving our colleagues visibility on how they can progress)“We reward people on individual merit – it’s not as simple as a one-size-fits-all”
(Transparent structures still allow for flexibility, you’re just explaining how decisions are made)“We’re not set up for that, we need to fix a lot of things first”
(Being honest about the journey builds trust. I’d argue that folks would rather hear “we’re working on it” than get radio silence)
Being transparent with pay isn’t about opening the floodgates and hoping for the best, it’s about building clarity and fairness into how we do things. When it’s done well, with structure, it can be a powerful tool for inclusion, trust and retention.
Let’s dive in to it..
What do I mean by Pay Transparency?
Pay transparency for me is being explicitly clear on how pay decisions are made. It’s including (realistic!) salary ranges on job ads, it’s explaining how pay is decided at different levels and it’s letting our colleagues know what progression looks like. It doesn’t mean that we need public spreadsheets detailing what every single person earns, but it should mean giving people the information they need to feel confident that things are fair.
Why is this still a thing?
I think culturally, for a lot of us, we’ve been conditioned to not talk about money. We sometimes feel uneasy or rude asking about pay. That culture of silence has allowed certain groups to navigate higher salaries or fast-track their way to promotions while others are left guessing, doubting or simply missing out. This fuels;
- Pay gaps (be that across gender, ethnicity, disability or class)
- Inconsistency in how people are rewarded
- Distrust in our leaders and processes
- A general sense that no one really knows how anything works!
If we want fairness, we need to talk about the things we were told not to.
It’s not just about sharing numbers…
You can’t be transparent without structure. I can see where people often get stuck, they think pay transparency = publishing salaries. If you don’t have clear job levels, responsibilities and the likes of pay bands in place, transparency can actually create more confusion. Without a structure or a framework, it’s harder to explain or justify. That’s where job architecture comes in..
Job what now???
Think Career / Progression Frameworks / Career Pathways / Role Structures / Job Frameworks – that kind of thing! It’s your blueprint and a fancy way of saying, “we’ve thought this through”. It maps out what different jobs look like, how the roles relate to each other, what skills and responsibilities are expected at each stage, how pay aligns with progression.
The wins are huge..
When you have a clear structure, with open communication, you get;
- More trust in leadership
- Clearer paths for everyone
- Reduced bias in decision-making
- Higher engagement and retention
- Progress in pay equity
People know where they stand and how to grow.
Without it? Not so great.
When pay decisions feel random or secretive, it creates tension. It’s hard to feel valued when you don’t understand how your contribution is being measured or rewarded and underrepresented groups are often those who suffer most.
No structure = no fairness
No transparency = no trust
Ok great, so where do you start?
You start slowly. It’s not about going from zero to radical transparency overnight. Heres a few things you can do;
- Audit – understand where you currently sit with roles and pay structures
- Define clear roles and responsibilities
- Create salary bands that reflect that level of responsibility (not a person’s negotiation skills!)
- Train managers to make fair and equitable decisions
- Communicate clearly with employees – even if you’re still working on it and figuring everything out!
Think progress over perfection.
Final thoughts, transparency isn’t risky – silence is.
It might feel uncomfortable, it might mean there’s a bit of work to do, but i’d argue that staying silent while inequality continues is the real risk. When people understand the system, and believe it’s fair, they’re more likely to stick around, speak up and succeed.
I’d love to know your thoughts. Have you started exploring this? Not sure where to start? Disagree with me entirely? Let’s chat! You can reach me on [email protected] or get in touch with us here
