Wage transparency refers to the practice of openly sharing information about employee compensation within an organization. This approach aims to foster a fair and equitable workplace by providing employees with a clear understanding of how salaries are determined and how they compare to their peers. Wage transparency can help address pay disparities, enhance trust, and motivate employees by making compensation practices more visible and understandable.
For example, a company that practices wage transparency might publish a salary range for each job position on its internal website or include detailed information about how pay raises are calculated. This level of openness can help employees feel more confident that their pay is fair and can also encourage better performance by aligning employees’ understanding of compensation with organizational goals.
Related Terms:
Compensation Strategy
