Today’s highly competitive hiring atmosphere is taking an issue that was once only discussed in hushed tones behind closed doors and thrusting it into the proverbial spotlight: Pay. Low unemployment amongst tech professionals and a high level of competition to access and retain top talent has led many organizations to re-examine their policies regarding salaries and compensation, even to the point of increased transparency.
But can increased pay transparency improve tech retention? Many say yes, and here’s why.
It’s no surprise that increased trust between leadership and their employees improve retention, but issues of pay are not traditionally discussed. This leaves many workers wondering if they are being paid fairly when compared to their professional counterparts, and a lack of communication in the area can make these basic concerns become serious problems.
By being open to conversations about pay, and even starting them on a regular basis, employees are more likely to feel valued. Additionally, by removing the stigma associated with talking about salary, companies can increase the amount of trust employees have in their practices.
Companies that aim to be transparent about pay often have strong strategies in place regarding pay standards and the evaluation of compensation over time. That means these businesses are evaluating the current market to see what competitors are offering employees with similar skills and are prepared to adjust accordingly. This reverses the tradition of only having salary discussions at key points within the employee’s career, such as when they are initially hired and at annual reviews.
Since salary is given a prominent place within larger retention discussions, companies are prepared to be proactive when the need arises. Instead of having top talent begin looking elsewhere for higher compensation, the business can step in when a disparity is noticed. When an organization takes a position of maintaining an open dialogue, it is easier to demonstrate that workers are being paid well for their skills, and to make corrections when it becomes obvious the company is missing the mark.
While this requires market analysis to be completed with a high level of frequency, the effort means greater retention. And that ultimately reflects well on the bottom line.
Pay Isn’t a Secret
While most employees aren’t openly discussing compensation with their co-workers on a daily basis, there is still a conversation taking place. Internet-based employment resources have taken pay out of the shadows and somewhat into the light. Now, when an employee wonders whether they are fairly compensated, a little research on their part can yield results quickly. This means that workers aren’t mystified when it comes to what their skills can get them.
Since information on salary is so widely available, failing to be transparent means your company doesn’t have the opportunity to participate in the conversation that is happening elsewhere. And, when it appears a business is holding something back, it rarely reflects well on them.
If you would like more information about pay transparency or are interested in finding candidates by offering competitive compensation, The Armada Group has the industry information you need to make both possible. Contact us to discuss your goals today and see how our services can help take the issue of pay out of the darkness and into the light.