Increasing pay transparency: A guide for change

Heisler, W. J.

doi:10.1016/j.bushor.2020.09.005

Cited by 14 publications

(16 citation statements)

References 4 publications

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“…Total compensation. In our review, we found that while research has expanded our understanding of PID regarding pay level (e.g., salary), we know relatively little about PID regarding total compensation (Heisler, 2021). For instance, one company that professed to have high PID regarding general pay levels kept merit pay secret (Day, 2011).…”

Section: Pidmentioning

confidence: 99%

Pay Information Disclosure: Review and Recommendations for Research Spanning the Pay Secrecy–Pay Transparency Continuum

Brown

Nyberg

Striver

2022

Journal of Management

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The amount and type of pay information made available by organizations to employees and between employees can have important effects on employee attitudes and behaviors as well as organizational performance. Although a large body of research on pay information exists, on topics ranging from pay transparency to pay secrecy, researchers have used inconsistent definitions (pay secrecy, openness, transparency, pay communications) and operationalizations that hinder knowledge development. In this paper, consistent with the theory of information asymmetry and based on research reviewed here, we promote a new integrative definition (“pay information disclosure”) that anchors both current and future research. We define the concept of pay information disclosure (PID) as the communication of relevant pay information between and among actors. By viewing pay information disclosure research in an information asymmetry context, with its focus on the causes and consequences of unequal access to information, we can synthesize research that examines motives for and outcomes of PID for individuals, organizations, and society. Based on our review, we outline a research agenda that identifies research questions and methods to stimulate studies to better understand the role of pay information in the workplace and in society.

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Section: Pidmentioning

confidence: 99%

Pay Information Disclosure: Review and Recommendations for Research Spanning the Pay Secrecy–Pay Transparency Continuum

Brown

Nyberg

Striver

2022

Journal of Management

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“…On this basis, basic guidelines for effective motivation can be formulated, including using openness to employees and treating them as partners, treating work as an intellectually important challenge that stimulates employees to innovate, promoting independence and professional development and practicing transparency in remuneration. [36,37]. To build an appropriate system, it is necessary to have up-to-date knowledge about the needs of employees and their expectations.…”

Section: Literature Reviewmentioning

confidence: 99%

Structure of Remuneration as Assessed by Employees of the Energy Sector—Multivariate Correspondence Analysis

et al. 2021

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Remuneration policy is an element of company management. Remuneration systems should be flexible and evolutionary. They must consider not only the changes in the external environment but, most of all, the changing needs of the internal environment. In practice, this means aligning the company’s strategy and goals with the remuneration system. What is more, the remuneration policy must be consistent with all personnel substrategies, which should systematically create integrated human capital management. The aim of our research was to determine how employees perceive the appropriate structure of remuneration and how the relationships between the elements that make up the structure of remuneration are perceived. Energy sector employees were selected for the study, dividing the group of respondents by gender, age and level of education. The obtained data were submitted to multivariate correspondence analysis. The analysis of the perception map for the variables of gender, age and education, as well as the subjective assessment of the components of remuneration, allows the general assertion that both men and women believe that the amount of the fixed part of remuneration should be influenced by such elements as: work efficiency, education, seniority in the current place of employment, position in the hierarchy of the position held, as well as the level of salaries in the labor market. But people aged 60 and over with a vocational education tend to believe that the amount of the fixed part of remuneration should be influenced by collective agreements. Moreover, people aged 25–34 with higher education believe that the granting of additional benefits should not be affected by collective labor agreements.

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“…Using transparency as a tool to drive positive social change can be highly effective. In recent years, for example, a focus on pay transparency-whereby an openness about remuneration empowers workers to benchmark their compensation against others at a similar level within their organisation-has enabled the successful detection of systemic pay inequalities (Heisler 2021;Treleaven and Fuller 2021). Research has shown that wage transparency can have the twofold impact of reducing gender pay gaps, while also 1 See e.g.…”

Section: Introductionmentioning

confidence: 99%

“…1 Yet alongside the advantages to integrating a transparent approach within equality initiatives, transparency also has its limitations and challenges. In the sphere of pay transparency, a more open approach can generate concerns related to procedural fairness, or who receives what level of pay and why (Hartmann & Slapničar 2012;Heisler 2021). This points to the need to be ready for the conversations that transparency may generate.…”

Section: Introductionmentioning

confidence: 99%

Gender Inequality Laid Bare: Transparency as a Tool to Drive Progress, Ethical Leadership and Good Governance in Victoria

Farhall¹,

Vincent

2021

LiC

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The state, in particular through its ability to enact legislation, has the capacity to either perpetuate or confront forms of systemic and structural disadvantage and inequality. Increasingly, transparency is being seen as key to designing effective equality law, and the ambitious new Gender Equality Act 2020 (Vic) (The Act) is a leading example. The Act seeks to break down outdated stereotypes and systemic inequalities—particularly those that relate to gender. Central to the design of the Act is its commitment to transparency. The Act mandates a level of organisational transparency about the advancement of gender equality that has not previously been required in the public sector in Victoria, or in the rest of Australia. This transparency underpins the ambitious objectives of the Act and is integral to the obligations it puts in place to drive progress towards gender equality. A focus on transparency serves four main purposes in accelerating the pace of change towards a more gender-equal society and providing leadership in this arena. Firstly, it functions as a practical tool to encourage knowledge-sharing and innovation along the path to gender equality. Secondly, transparent reporting of defined entities’ progress towards gender equality acts as a form of pressure to make material progress, instead of participating in box-ticking exercises. Thirdly, the transparency within the Act is a marker of ethical leadership, by democratising knowledge in this space. Lastly, a commitment to transparency is a sign of good governance; it both allows the public to access and interrogate public sector progress towards gender equality and ensures that government plays a leadership role in pushing for positive social change. The Gender Equality Act 2020 (Vic) is thus an example of how laying bares our challenges related to organisational gender equality can help drive progress towards a more gender-equal future.

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Increasing pay transparency: A guide for change

Cited by 14 publications

References 4 publications

Pay Information Disclosure: Review and Recommendations for Research Spanning the Pay Secrecy–Pay Transparency Continuum

Pay Information Disclosure: Review and Recommendations for Research Spanning the Pay Secrecy–Pay Transparency Continuum

Structure of Remuneration as Assessed by Employees of the Energy Sector—Multivariate Correspondence Analysis

Gender Inequality Laid Bare: Transparency as a Tool to Drive Progress, Ethical Leadership and Good Governance in Victoria

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