Australia recently banned pay secrecy clauses, leading many businesses to consider whether to disclose salaries in full. Removing barriers to discussing salaries among colleagues could help close the country’s 22.8% gender pay gap. Some corporations, notably major banks, have already scrapped pay secrecy clauses and published firm-wide pay bands to enhance transparency. Employers will also be required to publicly disclose their company’s gender pay gap to the Workplace Gender Equality Agency starting in 2024.
Leaders are responsible for ensuring compliance with the new law and fine-tuning existing pay performance models to withstand scrutiny. If companies embrace salary transparency, HR teams will need to overhaul current models and create a new, objective way of ensuring an employee’s pay accurately reflects their contribution. However, without ensuring the correct foundations are in place, openly declaring employees’ salaries could place the spotlight on existing problems.
Pay transparency additionally promotes accountability, encourages retention, and strengthens recruitment. By publishing salary bands, individuals can plan their career trajectory earlier on in terms of the qualifications and training they need to make the best moves.
- 1. Businesses in Australia are considering whether to publish salaries in full after the country banned pay secrecy clauses.
- 2. HR leaders are responsible for ensuring compliance with the new law and fine-tuning existing pay performance models.
- 3. Pay transparency helps promote accountability, encourages retention, and strengthens recruitment.
- 4. Individuals and businesses can work together to plan career pathways earlier in terms of the qualifications and training they need to grow capability in key areas
Ensuring pay equity in the workplace is not only a legal requirement but also a crucial step towards building a fair and just organization. Companies that take pay equity seriously not only improve employee morale and loyalty but also gain a competitive edge in attracting and retaining top talent.
TalentCode HR can support you in this process, we can assist organizations in:
– determining pay bands and auditing current salaries
– managing pay discrepancy discussions
– creating career paths and providing role clarity to employees,
– and attracting and retaining top talent by offering competitive market salary and reward structures.
By partnering with TalentCode HR, organisations can create a more equitable and sustainable workplace that promotes diversity, equity, and inclusion for all employees.