Human resources handles all kinds of sensitive employee information, and walking the line between the right amount of transparency and confidentiality in handling that information is a delicate balancing act. Transparency is a requirement, one that the workforce searches for at all levels of management.
How HR displays pay transparency
Employees want to know they are being compensated fairly for their work, and that their pay is suitable compared with the market’s averages and their fellow employees. When HR can find the perfect balance between being transparent and keeping sensitive information on the business’s inner workings (and about employees’ own roles and compensation) confidential, it can shine.
So, how exactly can HR do this using HR technology? There are multiple types of tech that make this challenge a whole lot easier and more organised. This technology assists HR in maintaining pay transparency with employees, fostering trust, and establishing principles of fairness of equity.
HR tech for pay transparency
Compensation management software is specially designed to improve pay transparency while keeping important information confidential and helping HR to manage salary structures and process compensation on multiple levels. Certain other technologies, like total rewards statements, are often incorporated into the software, which provides a comprehensive, detailed explanation of an employee’s entire compensation package, including salary, bonuses, perks, and benefits.
With some compensation management software, employees can log into the portal themselves and access their details – within predetermined guidelines set by HR to ensure privacy is upheld. This is called role-based access control, where users can gain access to their information based on their job responsibilities, with certain restrictions. Anonymous salary surveys are also a useful technology, which HR can use as a tool to benchmark compensation without disclosing personal details.
The benefits of pay transparency
When employees understand their compensation details and see HR upholding these values, they are more likely to be satisfied and motivated in their roles. This also leads to increased productivity and higher employee retention. Pay transparency can also improve diversity in the workplace, by reducing disparity among different genders and minorities. Employees will then experience enhanced morale and trust in their HR department.
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HR Tech Update — Insights you need to know about recent technologies to streamline HR functions; Scheduled every Thursday @ 6:00 AM brought to you by Chief of Staff Asia
