A new white paper from KnowledgePay suggests companies may benefit from increasing pay transparency. Approached correctly, increasing communication about pay can provide a more committed, engaged workforce, essential in this struggling economy.
In ÑPay Transparency: The Future of Compensation Management,â Chris Kelley, KnowledgePay founder and chief executive officer, traces the growth of pay transparency over the last decade and the advantages available to companies that understand and manage compensation within this new milieu. The paper is available for download at http://www.knowledgepay.com/wp0509paytransparency.html.
Organizations have to face it - compensation is no longer a secret,â said Kelley. Yet the question really is, åhow reliable is the data about pay that employees chat, blog, Facebook and Twitter about?Ç Clearly thereÇs no way to know how valid it is.
Kelley is quick to point out that pay transparency does not mean that every person in a company knows what everyone else is making. Rather, it means that every employee understands the foundation of their companyÇs compensation plan, how they fit within it, and how their pay stacks up relative to other alternatives.
Every company operates somewhere on a continuum of pay transparency à from absolute secrecy to full disclosure. An organizationÇs culture determines where it will fall on the continuum. Wherever that may be, targeted actions by management to increase the degree of transparency can result in more efficient operations, savings in time and money, and increased company revenue because employees are more engaged and satisfied in their jobs, and offer their discretionary effort.
Improved communication is vital. Citing foundational research in the Knowledge of Pay Study, Kelley shows that Ñorganizations that are perceived to pay less competitively achieve higher organizational effectiveness when they share more knowledge about pay and pay processes.
In addition, knowledge of pay increases employee trust in management and reduces turnover à a huge competitive advantage with the current economy.
Those interested in more information on pay transparency and its implications for employees, compensation management and organizational success can download the white paper, ÑPay Transparency: The Future of Compensation Management, at http://www.knowledgepay.com/wp0509paytransparency.html.
Pay Transparency is the Future of Compensation, Says KnowledgePay
New white paper demonstrates that effective communication about compensation can increase employee satisfaction, engagement
