Making the Transparency Leap: Panel Explores Implications for Talent, Culture, and Pay

“Transparency is already here, so the question is not whether to be transparent, but how transparent you will be,” Maria Colacurcio, CEO of Syndio, which uses AI to help companies address transparency and pay equity concerns, shared in her initial remarks on a panel focused on the new era of transparency and the implications for CHROs on talent, culture and pay.

Driving factors: State and local legislation aimed at increasing pay equity by requiring salary range disclosure on job postings combined with rising expectations of transparency in general are driving companies to examine their job architecture, pay practices, and communication of their compensation philosophy. While some firms are merely complying with transparency laws where necessary, others are viewing transparency as a benefit and an opportunity to set themselves apart from competitors.

The importance of engaging people leaders: Mr. Massa explained Kroger’s approach to “re-recruiting each associate” and the critical role that managers play.  He spoke about how the company “goes to great lengths with people leaders to be able to effectively help employees understand the pay framework, where an employee stands within that framework and why.” He shared Kroger’s pay transparency journey which started over a decade ago with their initial review of pay equity with the board. This year, pay gap data will be disclosed throughout the organization.

Building an employer brand: Mr. Mohiuddin, who co-founded Levels.fyi, a website which aggregates companies pay and level information submitted by individuals, emphasized the importance of transparency to communicate the employer brand and value proposition to younger generations. “You need to communicate the whole package, not just total compensation, but the entire rewards package” and try to quantify the value of employee-friendly programs and policies. He explained why so many job seekers, especially within Gen Z, are willing to share their validated pay data documentation to help other job seekers make educated employment decisions and get the highest total compensation package. 

Taking small steps: Ms. Colacurcio discussed the spectrum of pay transparency and how it can be used to “tell a compelling story to employees in a way that builds trust and becomes a competitive advantage from a talent perspective.” She emphasized the importance of using data to guide discretion in making better pay decisions. Ms. Colacurcio gave advice for employers who are not yet ready for full disclosure: start small because there is no going back. “Create a commitment statement of your intent to analyze pay data with a third party. Stay consistent with the initial communication as you move forward. Communicate a plan to get better as soon as you release pay gap data.”