Some employers worry that elevating pay transparency will cause employees to quit. It’s likely some will. But in organizations where trust is established in the culture, the change is unlikely to spark high turnover.
The trouble is that trust is lacking in many organizations. According to the Edelman Trust Barometer, almost one-third of employees don’t trust their employers. This figure might seem problematic, but it’s crucial to remember that effective leaders can cultivate trust and improve organizational culture.
With pay transparency initiatives forthcoming — as state and local governments roll out new legal requirements and employees increasingly expect more pay transparency — organizations with lower levels of trust may struggle. An essential best practice for navigating the complicated waters of pay transparency is cultivating and protecting employees’ trust simultaneously.
