JobatThe Flemish is traditionally very discreet about what he earns. At least that is the classic view. However, research shows that both employees and employers think that greater pay transparency has a positive effect on corporate culture. But how do you best approach that? And in addition to possible advantages, are there also disadvantages? Jobat.be posed the question to two payroll experts at HR services company Acerta.
All wages on the table: a good idea?
How much do my colleagues earn and am I entitled to more if I compare my salary with theirs? It is a topic that concerns both employees and employers in many organizations. Research by international recruitment agency Robert Half shows that 64 percent of employees think that greater pay transparency has a positive effect on corporate culture. Among employers, that figure is 59 percent.
Ellen Roelants and Simon Heirman, payroll experts at HR services company Acerta, frame the findings in the Belgian context. They also support the claim that more transparency about employee wages can have a positive impact on corporate culture. “Wage transparency does not mean that the employer must disclose the wages of all employees. Employees especially require insight into the rules and procedures surrounding pay increases. It creates a greater sense of justice,” says Ellen Roelants. “This way you will see that employees can make peace with wage differences.”
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Look beyond the net salary
Simon Heirman also emphasizes that pay transparency should revolve around procedures and regulations. “This prevents employees from comparing net wages, or apples and oranges. That is counterproductive and it says nothing about the other benefits that someone may or may not receive.” He notes that wages in many sectors are subject to scales, which ensures transparency in those cases. At least in theory. “We are also seeing more and more salary ranges on vacancies, but they are so broadly defined that they miss the point. For example, seniority and age play a very important role, especially in Belgium, and that creates a snowball effect.”
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The service record is coming under pressure
That immediately brings us to a tricky point. Because what do you do as an employee with a long track record when you notice that someone who is relatively new to the company is close to your salary? “We see an interesting contrast here between employees, who want to be rewarded for their loyalty and experience, and employers, who mainly want to reward individual performance,” says Roelants.
The current war for talent has a major impact on this. “To attract young starters, starter wages are often very high and in some cases close to the level of someone who has been working in that position for ten years. Here again, transparency about the logic used is very important.” Heirman also notes that employees today are reaching their pay ceiling more quickly than in the past. “After six or eight years, and then leveled off. In the past, your wages continued to increase gradually. This means that the added value of a newcomer after five years is actually the same as someone with a high seniority. This may be an incentive for the latter category to reorient themselves.” Find out here which factors determine your salary.
Transparency more important than ever
For employers, this means that their wage policy has been somewhat distorted and that they need to enter into discussions more than ever. Roelants: “Managers must clearly understand the principles behind the wage policy, so that they have clear tools for communicating about wages. This also prevents employees from having to turn to HR – and HR from having to play the role of bogeyman.” It is especially important for employers to monitor consistency in wages and to be careful with small promises. “These often quickly mean a major commitment for employers.”
Finally, are there also disadvantages to pay transparency? Roelants and Heirman don’t think so. “You avoid unrest through clear communication about logic, regulations and procedures. Distributive justice can provide an extra positive incentive. Yet some employees will measure their own performance against that of others who earn more, but then they know clearly where that difference comes from,” concludes Ellen Roelants.
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2024-02-16 05:20:22
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