This article was originally published at HR Brew by Amanda Schiavo.
Communication is key—it’s a cliché for a reason, and one that HR should embrace when it comes to pay.
As more states have passed pay transparency legislation, employers have increasingly committed to improving their communication with employees about compensation, according to a recent survey by WTW.
Nearly half (48%) of employers said they’re communicating with their employees about how they determine pay. An additional 36% said they’re “disclosing individual pay ranges to employees,” while 46% say they may plan to do so in the future.
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Improving transparency and communication around pay can help employers’ retention efforts. Indeed, pay transparency can reduce an employee’s intent to quit by 30%, according to Payscale research.
“Having open conversations about pay with your teams signal to current and future employees that you’re forward-thinking, have your ducks in a row and, most importantly, care about compensating people fairly,” Lexi Clarke, chief people officer at Payscale, told SHRM. “Employees want to stick with employers who they feel truly have their back, and pay transparency is a great way to build that trust.”