A key part of talent acquisition and strategy is staying up to date on the latest hiring trends, one of which is pay transparency. Recent research shows that there are more job listings being posted with pay information than ever before, as well as an increasing number of states legislating a mandate for all companies to post their wages.

As calls for greater pay transparency continue to be on the upswing, it's important to stay on top of how this change could shift the employer-employee dynamics and alter the way that workplace leaders communicate what they have to offer both prospective and current employees. Here are some considerations to take into account when considering what this means for your workplace and many others.

A Ripple Effect of Trust

There's no question that the call for greater pay transparency impacts workplace culture.

Historically, companies have discouraged employees from disclosing their salaries to their co-workers to avoid comparison, employee discontent, and pay creep. But today, there is a growing call for a trust-centric approach rather than one that comes from a place of distrust and secrecy.

From an applicant perspective, greater pay transparency allows new hires to begin the professional relationship from a place of trust. It also makes the hiring process more efficient, as applicants are better equipped to decide if a position is a good fit before actually applying and going through the interview process.

Established employees are also more likely to approach employers with frank discussions about compensation from a place of openness, as well as bring up other issues dealing with workload management or conflict so that they can be resolved as efficiently as possible. I believe that a trust-based approach can really ripple into all aspects of the employer-employee relationship, but only if both parties make the effort for transparency on multiple fronts.

Potential Conflicts

There are several notable issues for employers to consider when it comes to enacting pay transparency in their workplaces. The comparison that can come along with pay transparency comes to mind, with an increased risk of compensation-based conflict among co-workers. This means that management must stay abundantly transparent about pay structures or the rationale behind salaries, which requires additional administrative capacity to accommodate these demands.

Another problem that employers may face is that their employees are now able to make market comparisons with their salaries at any given moment. They are especially likely to do this kind of research if they are not given sufficient room for growth in the company or already feel unsatisfied with the nature of their current positions. What can companies do to mitigate the effects of this?

Above all, companies need to stay more alert than ever with the overall job satisfaction of their employees to minimize the likelihood of this kind of comparative behavior.

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