Leadership » The Case for Pay Transparency

The Case for Pay Transparency


The importance of pay transparency is a growing topic amongst association leaders. According to a LinkedIn survey, 91 percent of US-based respondents said that seeing the salary range on a job posting would positively influence their decision to apply. Furthermore, 82 percent of respondents thought more positively of organizations that post salary ranges. 


Pay transparency levels the playing field and helps organizations revisit their salary philosophy and practices. This is especially critical in the talent acquisition universe. Not knowing how pay is determined or administered could result in the inability to compete for new talent or retain current staff. Organizations should ensure that their salary ranges are based on reputable salary surveys and valid market data for their community and that they update their pay practices at least every 18 months.


Additionally, organizations should ensure that their pay practices are fair and not penalize people based on gender, race, sexual orientation, or any other protected category. However, if current pay practices are not fairly administered and people do not know their salary range or how jobs are slotted into specific grades, there may be complaints from staff. This is why organizations should evaluate their pay practices as it is only likely to become a bigger issue in the future.

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