The wage transparency dilemma

Learn some key points about wage transparency, a growing trend for attracting talent to companies through digital platforms.

El dilema de la transparencia salarial


According to a recent LinkedIn survey,

75% of HR specialists who work in companies which haven’t yet implemented wage transparency policies think this might cause disputes.

PayScale, Glassdoor, LinkedIn, and other platforms used by recruiters have begun to allow the publication of wages. Publishing or not this information has become a business decision which could decrease the value of a brand against the competition.

No one can deny there is a ‘taboo’ when it comes to talking openly about wages since revealing this information could unleash a fierce hunt for talent, while also reducing a recruiter’s margin for negotiation.

Following LinkedIn, only 27% of companies are transparent about the wages they pay and the scheme of benefits they offer.

Google Jobs will soon demand transparency

In this platform, which is fed by most of the job boards, the offers with wage information get more traffic than those offers of the same position which don’t publish specific salary information.

Google has stated that if companies want their jobs offers to be displayed higher in the search results, they ought to publish wage details in a structured data field.

Why is transparency important?

Companies which share wage ranges receive additional benefits like speeding up the hiring process. Filtering applicants also helps to ensure fair wages across an organization.

Well-managed transparency is a competitive advantage: it is the right thing to do and employees and candidates want it. Likewise, when supported by AI tools for performance measurement it’s a fairer process which could motivate employees to increase their performance.

Transparency is not attained overnight

HR must begin to generate strategies for wage transparency, especially because the payment of employees has been a confidential issue for years. Today, digital platforms and the Internet make the candidates want and demand specific information: companies should start generating solutions, otherwise conflicts could arise.

According SHRM, most people incorrectly believe that they are underpaid in relation to their market position.

HR must know how to communicate the many factors behind wages. Thus, HR must find the best way to adopt a medium-term wage transparency plan, since this trend will continue to grow and most likely all online recruitment will end up fulfilling this demand, for which HR better be prepared.

HR can start by disclosing salary ranges for different roles to employees and by training managers to discuss wages: the most important thing is to have open and honest conversations about payment and benefits.