More businesses and companies are dedicated to releasing information on pay inequalities that exist in their operations and industry. The American Community Survey
reported in 2018 that year-round, full-time working women earned $42,238 on a median level, compared to the $52,004 salary of men in full-time annual work. The pay gap between
white British workers and ethnic minority workers in the UK also remains wide and unequal, with particular disparities in earnings for Bangladeshi, Pakistani and UK-born black African employees. This data is becoming more and more important to businesses and HR departments, as they commit to closing these pay gaps and finding solutions to disparities amongst employees.
Pay transparency is a tool you have to share information about salaries with your team. It’ll allow you the opportunity to explain and share how you devise your pay structures and gain feedback from employees to address potential pay inequality. This will be particularly useful if you run a tight-knit, small or medium business. Another option for pay transparency isn’t to share specific salaries for specific employees, but the formulas for how pay is generated for certain positions. Of course, this is a new and slightly controversial idea
, that comes with its pros and cons. If you’re committed to addressing any inequities in your business and you want your team involved in the process, employee performance evaluation software is a great option. Pay transparency is relatively new, and we’re not sure what role it will pay in the future, but it’s certainly a trend to look out for.