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Salary Transparency: Is it the Way Forward?

23/9/2019

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We are living in a world where we are encouraged to talk. Talk about our mental health, talk about private matters and talk about work related issues. All of this, in my opinion, is a positive, especially in business. Without knowing an employee’s circumstances in most aspects of their life (if they wish to share), it can be hard to comprehend the way they work or why they may be having trouble performing to the best of their ability.

However, one aspect of the working world that we still seem to have problems talking about is salary. Pay transparency has been praised as a way of potentially closing the gender pay gap, as well as encouraging employee engagement and less competition.

In a recent study by Blind, 60% of participants (mostly from the tech industry) answered ‘yes’ when questioned if they have been discouraged by HR from sharing their salary with fellow employees. The social networking app, which is popular amongst tech companies, also asked if professionals shared their salary with colleagues, to which 40% answered ‘no’. Closer to home, a survey carried out by CIPD showed that only 21% of Irish companies calculated their gender pay gap for employees.

This is quite a big problem in the modern climate, given that pay transparency has been championed and gender pay gap revelations are increasingly being reported in the media. The most recent figures published by Eurostat in 2016 reported that the gender pay gap in Ireland was 13.9%, which was lower than the EU average but still a long way off from where it should be. This has led to the Irish government presenting the Gender Pay Gap Information Bill to the Dail.
 

The Obligations
To address the issue, we can expect to see more regulations being enforced that require employers to show if there are any differences in gender renumeration and if so, to what extent.
Employers will be obliged to report the following information:

  • the difference between the mean and median hourly remuneration of male and female employees
  • the difference between the mean and bonus remuneration of male and female employees
  • the difference between the mean and median remuneration of part-time male and female employees
  • the proportions of men and women receiving bonuses and benefits-in-kind

If there are considerable differences, the organisation will then have to publish statements explaining the reasons why there are such gaps, as well as the measures that have been/will be taken to eliminate these differences.

With all of this in mind, we have included a few pointers below to encourage employers to increase salary transparency in their organisation.
 

Research Industry Compensation
If you wish to encourage pay transparency in your organisation, it is important to research pay ranges in your industry. A quick online search will provide information on salary and additional compensation in numerous industries, which are quite often broken down by roles and geographical areas. Websites like glassdoor.com, salary.com and indeed.com will provide information you need to ensure your business is within the same range as your competitors so you can start a transparency conversation with your workforce.
 

Audit Current Employee Salaries
You can’t look forward without knowing where you currently stand. Have an in-depth look at what your employees are currently earning, why certain staff members are earning more than others and how this can be amended to be more in line with overall industry salaries. Consider added bonuses and benefits that individual employees may have compared to others and look at the reasons behind this. Based on your findings, examine company finances and the best way to close the pay gap.
 

Assess Your Workforce 
Whilst you may be on board with transparency, not all staff members will feel the same. You need to decide, overall, if your workforce will embrace the proposed change. If your employees aren’t happy with pay transparency, then the plan may fall flat or even lead to an increase in staff demotivation and turnover.
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It is natural for there to be some resistance from certain members and groups, with some being more distracted than benefit from the change. As the expert in your business, you are best poised to determine the response to salary transparency, however if you are unsure of the reaction you may receive, then simply ask your staff what their thoughts are. If you decide to go ahead then make sure you are equipped to deal with kickback.
 

Train & Educate Management
For any changes to work, you need to gain the support of your executives and key people who will be engaging with your employees directly. Managers and supervisors are often front-line communicators and are the first people your employees will go to if they have an issue or any questions and so you need to guarantee your managerial team are on board with the plan and will positively reinforce information.

Ensure your managers know which information is being shared with employees, how quickly it will be shared and what the benefits are to the change. Supervisors need to be trained in dealing with tough and complex conversations so you and they are confident they have the skills to answer any questions that might arise. Brainstorming and feedback sessions are vital to prepare for every aspect.
 

Start Being Transparent
Once you have decided the best course of action and wish to be transparent, let all your employees know what each of them are earning and encourage meetings with staff members who may have issues with the current situation. Initial confusion will most likely arise but try to think long term - social sharing start up, Buffer, made all their staff earnings public online in 2013, and as a result, applications from qualified workforce went up by 50% in the next month.
 

Eliminate Salary Negotiation Going Forward
Eliminating pay negotiations is a drastic approach, but for some companies is arguably seen as the simplest solution. In 2015, the American company, Salesforce, eliminated its negotiation policy in its 13 global offices across Europe. It is quite often stated that men are stronger negotiators than women, and so rather than encouraging more competition and back & forth at interview stage, it simply eliminates the practice of negotiating.

In addition to this, some Scandinavian companies have taken a two/three tier approach with all junior employees earning a set amount and all senior staff members going up a tier but still earning the same as colleagues on their level. This cuts out pay gaps and questions as to why someone might earn less than their counterpart.
 
With all of this in mind, it’s important to remember that there are different approaches and levels to salary transparency. Therefore, you need to look at what is best for your company and employees before proceeding with your chosen route.
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Make September Stress a Thing of the Past

13/9/2019

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It’s back to school season, and we all know what that means – seeing photos on social media of everyone’s child, at their front door, in their brand-new school uniform! While this shiny, happy front appears charming, behind the scenes there is so much more going on that may be affecting the productivity of your employees: new routines mean anxiety, juggling and added pressures.

However, parents aren’t the only people feeling ‘September Stress’. In fact, a 2014 article on Ingram’s Misery Index claimed that summer was the happiest season, with autumn being the most stressful. Findings in the Index are correlated through user search data, and identical search terms from 2019 found similar trends to 2014, with depression related terms being significantly higher than in the past. In other words, its likely a portion of your workforce may be struggling to cope with the return to business as usual, following the quieter summer period.
So how can employers aim to keep these negative feelings at bay in the workplace?
 
Get on their Wavelength
As an employer, it’s easy to take some time over the summer to reflect on future goals for your business. It’s only natural that you will see September as the time to go in all guns blazing, initiating plans to make THIS quarter the best yet…however not everyone will be on the same page as you.

Remember that, whilst your business is your baby, your employees have their own private issues. Perhaps someone’s child has started school and has been anxious with the change. Equally, a lack of enthusiasm from an employee to ramp up their work again after summer might indicate a drop in motivation about their role.

Take this time to check-in with your employees. Ask them about home life, what might have changed over summer and what THEIR goals are for the remainder of the year so you can help them be more productive and engaged. Regular meetings and check-ins build open relationships, which in turn increase employee engagement and commitment.

 
Be Open to Flexibility
I have touched on this topic numerous times in the past, and flexibility in the workplace is slowly starting to become the norm, which is an invaluable asset to a business.

Flexible work patterns are life savers to some: parents who have to pick up children from school, staff members who may be carers, or even employees who work better early morning than mid-afternoon.

Companies can implement a number of flexible working options, such as job sharing, reduced working hours, altered start/stop times, compressed hours and working from home. All these opportunities can result in increased job satisfaction, employee loyalty, productivity and profitability, as employees feel less stressed with managing their work/home responsibilities.

Understandably this doesn’t work for every business model, however don’t rule out change – ask your employees for ideas and feedback on what might help increase their productivity.
 

Encourage Better Sleep and Mindfulness
Quite often we think that a nice, relaxing holiday will have us feeling 100% refreshed and spritely when we get back to work. This isn’t always the case. Sleep patterns are vastly different in the summer, whether it’s because of increased socialising or due to longer evenings and brighter mornings.

Research shows that returning to work after a holiday can be more tiring than initially expected, with the brain having to “switch back on” and become more stimulated again. When tasked with problem solving or innovative thinking, the brain may not be as responsive for the first few days back to work.

A simple way of stimulating healthy brain activity is doodling. Leaving pads and colouring pencils on your employees’ desks will help them focus, ease impatience and generate new ideas. In fact, a study in the journal of Applied Cognitive Psychology found that people encouraged to doodle whilst listening to people’s names being read out, were able to remember 29% more data in a surprise test conducted a few hours later.

Along with doodling, an increasingly popular means to help employees focus is mindfulness. Implementing mindfulness eases stress and anxiety and encouraging staff members to practice mindfulness at certain times of the day will have a positive impact on mental well-being and their tasks in hand.
 

Moving Forward
Implanting changes in the workplace shouldn’t just be considered after holiday periods. Small updates and changes every few months are important for ensuring your employees are motivated throughout the year.

Ask staff to create individual and team goals each month/quarter to encourage personal improvement along with team morale. Meet with your employees on a regular basis to let them share their successes or get advice on how they can overcome certain hurdles.

Keep enthusiasm at an all-time high by organising team building games, training courses, or interesting speakers to engage with your employees. By investing in employee satisfaction, you are investing in your business.
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Get Your Colleagues to Go the Extra Mile, the HR Way

4/9/2019

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This might shock you, but the number of sedentary jobs has grown exponentially by 83% since 1950. Meanwhile, only a fifth of today’s jobs are physically active. Reflecting the market change in the world of work, these sedentary jobs vary from low-skilled admin through to the modern tech jobs that have begun to characterise the skyline of Dublin.

But what impact have these trends had on employee health? Not a positive one at that. Some workers are now reportedly less active than the oldest pensioners, with minutes of exercise dwindling rapidly, while physical inactivity has become the world’s 4th largest killer, according to the World Health Organisation. Overworked and under exercised, it can easily take a toll on an employee’s health.

But is your business aware? If so, what are you doing about it?
 
Why You Should Act Now

As Richard Branson concludes, “business success is all about people, people, people.”

Your business relies on your talent – you need to make sure you nurture that talent in every way possible. By actively seeking out your moral duty of care to your colleagues in all aspects of your health, you can do good for your business and our ever-changing society as a whole.

Top risks of your workforce’s physical inactitivty can include diabetes, risking obesity, greater depression and cardiovascular issues, as well as certain types of the dreaded “C” – cancer.

By introducing new measures and taking the time to adequately plan a new approach to getting colleagues to go that extra mile for their own physical wellbeing, you can greatly improve the productivity and reputation of your company.
 
How to Help

  • Encourage Colleagues
Adults are recommended that they undertake 150 minutes of moderate to vigorous exercise weekly.

Awareness is key – making sure that your business actively encourages colleagues through training and internal encouragement could make a big difference.

This can also be enhanced by putting in place new activities for colleagues during working hours, for example a lunchtime running club or yoga class.
 
  • Meetings on the Move
Holding meetings during a walk will get colleagues out of the office and into a fresh space that will encourage new ideas and give workers a break from the four walls.

Before you fret - this isn’t code for another break! It just means instead of sitting, struggling through a meeting and trying not to fall asleep, colleagues can get into the fresh air, get networking and get active all at the same time.
 
  • Work Exercise Schemes
Whether it’s a cycle to work initiative or discounted memberships at the local gym, throwing such added benefits into an employee’s contract will encourage them to get moving and give them the access they need to ensure they get their weekly recommended exercise.

Not only will you be putting your colleagues health first, but the health and productivity of your company as a whole will be set high on the agenda.
 
  • Upgrade Your Equipment
People are sitting too much, slouched in unsupportive chairs that do nothing for their posture and nothing for their health.

From standing desks and the use of exercise balls, to more advanced treadmill desks, this can encourage more movement amongst your team, a great step count and a greater chance of improving their health.
 
Walk This Way, Talk This Way

Clearly, we need to get our staff out of their chairs, onto their feet, and moving in order to maintain a healthy and fit workforce as we gradually move into a new decade.

Sending the odd encouraging staff newsletter or putting up posters in the bathroom isn’t going to cut it.

Start walking your way to a healthier workforce by planning and executing effective workplace initiatives and introducing practical workplace equipment which will encourage healthier lifestyles for those that work for you – do it the HR way!
 
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