6 Things Every Employee Should Know about Salary Transparency
Receiving a salary commensurate with one’s job role is every employee’s right. Salary transparency is a company’s degree of openness toward explicitly disclosing the salary it pays employees at specific levels and job profiles. It increases the employees’ job security, reassuring them that the compensation process employed by the company is fair and equitable. If you are a candidate applying to different companies, here are some things to know about salary transparency:
Online and offline pay transparency
Today, several reliable compensation software and data companies, including Payscale and Comparably, provide insights on companies’ salaries for specific job roles. Many of these websites also offer comparisons between the standard compensation for these roles and that offered by a company. Genuine companies are listed on these websites, and the compensations they offer to an employee in person are congruent with those mentioned on these sites. Employees are entitled to speak up in case of discrepancies between these quotations.
Pay ranges for each job role
The pay scale for each job role may differ based on various factors, such as the employee’ experience level, qualifications, skills, and the number of working hours. However, genuine companies provide candidates with detailed pay ranges for the roles they are applying for, together with an explanation of why they have arrived at a particular salary figure for the employee.
Equitable pay for all
Reputed companies do not shy away from providing evidence of equal pay for all employees, regardless of gender, race, ethnicity, and other such classifications. A pay-equity audit conducted by the company is an effective strategy to identify salary discrepancies based on such criteria. Companies intending to establish an equitable workforce conduct this audit and formulate active plans to eliminate any pay gaps. Before accepting a job offer, candidates should check a company’s pay-equity audit and discuss such measures taken by the company.
Discussions on climbing the professional ladder
Employees are also entitled to ask their potential managers or the HR team about the steps involved in ascending professionally in the organization— the increment and appraisal policies, possibilities of vertical and lateral promotions. Such clarifications enable employees to learn about their growth prospects in the company and whether their efforts are likely to be rewarded monetarily. Employees must ask such pertinent questions during their initial calls and receive satisfactory, evidence-based answers before proceeding with the onboarding process.
Clear breakup of salary components
Your employer must provide you with a clear salary structure comprising all its components, including the basic salary, leave-travel allowance, house-rent allowance, provident fund deductions, tax deductions (and information on taxes levied), gratuity, conveyance allowance, and premium deductions if you apply for insurance. It should also specify any performance or statutory bonuses that may be offered to the employee for the duration of his/her employment. Finally, a systematic process should be employed by the company to provide salary slips to the employee every month.
Openness to compensation-related discussions
Last but not least, the management and HR team should be open to answering any queries you may have about the company’s compensation policies as well as the salary being offered to you. Such transparency is a crucial determinant of the company’s honesty, genuineness, and inclination toward an employee-centered workforce. Other related topics such as work-life balance and amenities are also within the scope of such discussions.
Salary transparency is one of the primary factors influencing employee onboarding and retention today. A genuine company is open about its salary ranges and policies and has specific processes in place to ensure workplace equality and fairness. Verifying these aspects before accepting a job role helps avoid unpleasant experiences and exploitation.