Pay Transparency Is Exposing a Bigger Problem: Private Companies Can’t Explain Why They Pay What They Pay

In a Fortune article published this week on the pay gap and pay transparency, the takeaway wasn’t that companies aren’t sharing pay — it’s that they can’t explain it.

Private companies with fewer than 200 employees need a salary structure with total cash and equity ranges. And sure, having a job architecture and salary structure makes you compliant with pay transparency laws — but more importantly, it gives you the reason why you’re paying Jane, a Level II Software Engineer, X dollars in total cash and Y percentage in fully diluted shares.

The companies that can explain why they pay what they pay don’t just have a compensation philosophy — they have a holistic approach to their organization’s compensation. That’s where a Pay Plan comes in.

Even if you are a young company, it’s never too soon to put your compensation infrastructure in place so that you can not only answer these questions, but have confidence that you are being consistent and thoughtful across your entire organization.

Read the full Fortune article here, and let us know if we can help your company answer the why.

Categorised in: Data Drops

This post was written by jthelander