Five Steps to Payroll Transparency

Five Steps to Payroll Transparency

If you have decided that payroll transparency is right for your company, you may be excited to get the ball rolling and post the numbers for all to see. Going about payroll transparency in the wrong way can make for disgruntled employees and potentially even lawsuits, however. Taking the time to implement payroll transparency by moving through the following steps can mitigate issues and help generate excitement about the new policy.

  1. Speak to Employees About Transparency

Employees should be let into the fold regarding pay transparency long before any information is revealed. Finding out how employees feel about pay transparency, what their concerns are, and whether it’s a change they can get behind will help you figure out how to optimally manage the change. Employees may feel more included and valued, as well.

  1. Make Sure Pay Is Fair and Competitive

Before going public with your salaries, it’s extremely important to make sure that your salaries are competitive and fair. Employees have access to sites like Glass Door, so they can do their own research to see if you are paying competitively for the position and the field. Once you release the payroll information, employees will be able to see if you are paying fairly based on tenure and merits.

If there are gaps between what employees in the same position are making, it’s wise to provide additional information that can help to explain the gaps. Making it possible for employees to take charge over their own development and work towards raises and promotions can help to make that information actionable.

  1. Decide Exactly What Information Will Be Public

Some companies decide it’s best to keep the actual salaries hidden, but disclose the methodology behind salary decisions and pay increases. Other companies feel it’s best to release the salary information for employees at certain levels or in certain positions, rather than the whole kit and caboodle. Figure out what you want to reveal before you get started to make the process smoother.

  1. Make Pay Data Easy to Access

After you’ve taken the steps to determine which information will be viewable by employees (and perhaps the public), make sure that accessing that information is easy. Employees will be curious about the new information, so they will likely be logging onto HR software and following the steps that you have outlined to access it. Make sure that this activity won’t crash the system and that employees won’t encounter glitches.

Making sure that employees can easily access the new information can help to garner support for the new transparency policy. If employees feel frustrated after trying to view the information, they may deem the policy shift a failure. Pay data should also be easily accessible to candidates applying through recruitment software.

  1. Provide Support and Guidance for Employees

Employees may have questions or concerns after pay information has been released. Making sure there are support and guidance systems in place to quickly address these concerns and questions can make the transition easier for employees. If too many employees seem confused or concerned about the new payroll policy, it may be helpful to plan for training seminars or company meetings.

Payroll transparency can change a company culture for the better and promote other positive changes if the transition is handled properly. Taking the time to make employees comfortable with the new policy and to make sure the technology supports it can make all the difference in successful payroll transparency.

Photo Credit: TrainingOnLimited Flickr via Compfight cc

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