Table of Contents
- 1 What are the pros and cons of pay transparency?
- 2 Is pay transparency a good thing?
- 3 What is a red circle salary?
- 4 Can my boss disclose my salary to other employees?
- 5 Can you be fired for discussing your salary?
- 6 How do you ensure that your EMPLOYEES are paid fairly?
- 7 What can and can’t you do to protect yourself and your company?
What are the pros and cons of pay transparency?
Top 10 Salary Transparency Pros & Cons – Summary List
| Salary Transparency Pros | Salary Transparency Cons |
|---|---|
| Better position for employees | People feel like performance doesn’t matter |
| Candidates have better wage insights | May need some government regulation |
| May increase worker satisfaction | Work climate may suffer |
How do you deal with red circled employees?
Typically, we find red-circled employees when putting a new compensation plan in place….Employers typically address red-circled employees using one of the four following options:
- Cut the employee’s pay to fall within the range (Management Association does not recommend using this option).
- Freeze the employee’s pay.
Is pay transparency a good thing?
Salary transparency isn’t just the right thing to do. For some companies, it’s a legal requirement. While it’s a known fact that women are paid less than men on average, the secrecy surrounding salaries can make it difficult for an individual worker to know if she’s underpaid relative to the men she works with.
Why do we keep our salaries secret?
When people don’t know how their pay relates to their peers, they either think that they’re being underpaid and maybe discriminated against or worse they actually are. In addition, keeping salaries secret makes it easier to discriminate—or at least makes it easier to ignore the discrimination present today.
What is a red circle salary?
A red circle rate is a rate of pay authorized above the maximum salary for a class. A red circle rate is intended to mitigate the hardship when an employee’s salary is to be lowered through no fault of the employee.
When would you pay a red circled rate?
Red Circle Rate Red circle rate is defined as the maintenance of an employee’s salary to provide salary protection when the position has changed and/or reclassified such that the new pay grade established is lower than the old pay grade.
Can my boss disclose my salary to other employees?
An employer may not prohibit an employee from disclosing his or her own wages, discussing the wages of others, inquiring about another employee’s wages, or aiding or encouraging any other employee to exercise rights under the Equal Pay Act.
Is it OK to talk about salary with friends?
“Yes, you can most certainly talk about your salary and what you make; however, my advice is to keep that info to people you know, love and trust,” Swan adds. There are legit reasons to take the salary talk out of the shadows, especially in the workplace.
Can you be fired for discussing your salary?
No, you cannot be fired for discussing wages at work. The majority of employed and working Americans are protected from discipline exercised simply due to protected classes, such as age, gender, race, and so forth.
Can employers prohibit employees from discussing their salaries?
As a result, the employee was given back pay and offered reinstatement, and the employer changed its handbook. This case illustrates a common misconception — that employers can forbid employees from discussing their salaries. Repercussions from these kinds of conversations can ripple throughout the entire company.
How do you ensure that your EMPLOYEES are paid fairly?
Consider instituting strategies like these: Pay people fairly in the first place: Review your own records and make sure your salaries are competitive in the marketplace. Encourage a workplace where employees are comfortable approaching management or HR personnel with questions or observations about salaries or working conditions.
How can employers attract and retain employees?
Employers have to prioritize safety, flexibility, transparency, and technology when trying to win over job seekers or maintain their workforce. Those who attempt to force workers into an unsafe environment will struggle to retain them, and when the word gets out (which it will), recruiting will also be an issue.
What can and can’t you do to protect yourself and your company?
The more you know about what you can and can’t do, the better you can protect yourself and your company. You cannot forbid employees – either verbally or in written policy – from discussing salaries or other job conditions among themselves.