Lack of transparency over earnings and salary banding: How openness remains the best way to ensure fairness

  28th September 2017       Hannah Hashtroudi
 Recruitment, Accounting & Finance, CIPD, Employment, Human Resources, Office & Commercial

According to a survey by job search engine Adzuna: when it comes to pay and job satisfaction, those in human resources are some of the happiest workers in the UK, even though the gender pay gap still sits at 10%.

Professionals working within consultancy and construction were also found to be some of the UK’s happiest workers.

However, employees in retail and teaching are amongst the unhappiest employees in the UK. And its uncertainty over pay that’s causing problems with job satisfaction.

The survey on 1,000 workers found that two out of five believe they were paid less than their colleagues.

Over half (53%) said they had ‘no idea’ of their true value to employers and stated that they would never discuss salaries with colleagues. Just 13.6% have been successful when asking their boss for a pay rise.

Sky news has recently reported that workers in their twenties were most secure in their levels of pay, whilst those aged 35-44 were least confident.

“British workplaces are rife with uncertainty over pay,” said Adzuna co-founder Doug Monro.” An ingrained lack of transparency over earnings and salary bandings has created a culture of conviction others must be paid more than us. Combined with a lack of knowledge of what our own skills are worth to employers in today’s job market, this spells a recipe for disaster for ambitious career builders.”

It is often advised against discussing personal information such as salaries at work, although research has found that not discussing salaries can actually hinder performance, hiring and the business itself. So why, if it’s proven to encourage better performance, are so many businesses avoiding the opportunity to be transparent and improve efficiency?

David Burkus, an Associate Professor of Management at Oral Roberts University, believes that it’s down to fear: “It’s fear that when people find out that different people get paid differently, they’re not going to be able to have the maturity and make the mental leap to see that there are reasons why a certain person is paid more than the other.”

However, being open about these differences could also help to put an end to the gender pay gap. “When employees are armed with data about their pay and the pay of their coworkers, it provides the opportunity to bring inequities to the attention of management,”

“Openness remains the best way to ensure fairness.”







Hannah Hashtroudi

Principal Recruitment Consultant

Hannah is a specialist in the Office & Commercial sector. Dedicated, hardworking and motivated, Hannah thrives on sourcing and placing the best talent from SME’s through to large blue chip companies across the region and in London. Hannah has grown an enviable reputation for sourcing high level senior appointments together …

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