Companies face heat over pay transparency as taboos fall away
Restrictions around sharing pay information are being eroded, particularly among millennials, write Mark Smith and Maria Gribling
Pay transparency is becoming a more visible management topic as a number of pressures force companies to consider how open they should be about pay structures, pay levels and pay gaps. As well as legal pressures, the sharing of information via social media and expectations of new generations are also encouraging change. Some companies are publishing their remuneration levels, policies and practices while others are more resistant. As well as potential risks, are there perhaps benefits to being more transparent? Pressures on companies for greater pay transparency come from a regulatory push in the EU and US and a broader debate in society about unfairness of pay secrecy. Taboos around sharing pay information are being eroded, particularly among millennials. Individuals can access pay information on websites such as Glassdoor and share on social media.