Pay Transparency Causing Major Impacts in Reward Strategies: New Research from Reward Leaders

Abstract

This paper examines the results of a global Korn Ferry survey that assessed pay transparency-related market practices. Despite increased attention and pressure from internal and external stakeholders, organizations are still in the early stages of implementing pay transparency strategies. Organizations plan to overhaul their reward communication strategies, with manager training and employee education as the primary focus areas. Managers play a critical role as the first line of communication with employees on their team, and organizations recognize that a significant upskilling effort will be needed to enable them to communicate effectively about pay decisions and avoid unintended consequences. The authors provide considerations for organizations moving toward more transparent pay practices, including clarifying a pay transparency strategy, assessing their current practices, improving compensation programs, aligning their leaders and developing effective rewards communications strategies.