Employers are becoming increasingly transparent about their pay processes and decisions, according to a survey from the Chartered Institute of Personnel and Development (CIPD).
A survey of more than 700 businesses revealed that, 68 per cent believe they are open about how pay increases and levels are set, with nearly one-third favouring ‘great’ transparency.
This latest Reward Management Survey from the CIPD showed 71 per cent of employers were open about how pay rises were calculated, and more than half were transparent about the size of wage increases awarded as a result of these processes.
‘While we’re still some way off from seeing full disclosure on pay and reward, there are strong indications that employers are increasingly willing to be open about the processes behind their pay decisions, and in some instances, the outcome of these,’ commented Charles Cotton, senior reward and performance adviser at the CIPD.
He explained that this trend is part of wider shift in business accountability that is being seen through gender pay reporting and calls for greater openness around executive pay.
‘Fairness, inclusion and equal opportunity are at the heart of good work and increased transparency gives organisations the chance to explore their pay practices, as well as shed light on wider workforce issues,’ he added.
The CIPD’s last Reward Management Survey (2015) showed that only half of respondents were in favour of pay transparency, unless compelled by legislation. However, the latest findings indicate that employers’ attitudes are shifting towards being more open about pay.
