How to Implement Pay Transparency: A Comprehensive Guide

In this guide, we dive into tips on navigating regulations, salary ranges, employee communications, and more so your company can implement pay transparency successfully.

1.  Set Up Your Compensation Foundation

Learn what companies are thinking when they build out your compensation package, with a brief intro to the concepts of compensation philosophy and total rewards.

2. Analyze Your Pay Data

Learn how companies set salaries, with an overview of the complex factors that influence pay, including market data, performance, and supply and demand.

3. Make Your Pay Transparency Implementation Plan

Your salary (or base pay) is an important component of your compensation, but don't overlook the other valuable elements of your total rewards package.

4. Communicate Changes Internally and Externally

Your salary (or base pay) is an important component of your compensation, but don't overlook the other valuable elements of your total rewards package.

Even if your company isn’t being impacted by pay transparency regulations today, you may be “forced” to do so by the expectations (or demands) from employees and candidates: a Pay Clarity Survey found that 17% of organizations are already disclosing pay range information, and 62% are planning or considering disclosing salary information in the future—even if they’re not required to by law.

The problem? About a third of companies don’t feel they’re in a position to share salary ranges. Administrative complexity (30%), lack of clear job architecture (25%), and employee reactions (46%) are the top reasons for holding back.

1 in 5 US workers will be covered by a pay transparency law in 2023
_{- Harvard Business Review}