EMPLOYERS, IT’S TIME TO STOP BEING FUNNY ABOUT MONEY
Erm but why? Because money is very important, having enough of it makes your life infinitely easier those are just facts and being able to talk about it openly and honestly is something which should be a must in every workplace.
Money is traditionally a sensitive topic and one of the least discussed, any idea what the person next to you earns? No, would you ask them? Also no, private innit? Really is it though? Or is it just a chat about what the market (and your employer) is paying and whether that is fair?
Here’s the thing though, the generations which are coming into the workplace these people are going to be asking about the money, asking you and asking the person sitting next to them in the office, in a world where influencers tell everyone how much they’re making for one advert, the conversation for employers needs to start changing now.
Transparency about money should be a priority for employers and here’s why:
Trust
The core foundation of every relationship, employees (rightly) want to feel they are being fairly paid and that you value their contribution. When pay scales, salaries and structures are kept confidential, employees will wonder why and will do a bit of digging, this is when the conversations about money between your employees do start and not always with a happy outcome. The hard facts are there is no need for this lack of clarity - and if you are in a position where you’re not compensating your employees fairly or equally then this is something you need to address - not keep a secret.
Fair’s Fair
Salary transparency is crucial in addressing issues like pay inequality due to gender or other issues. Where salaries are secret or not disclosed employee can never know if they are being paid fairly as they have no comparison. Open and regular discussion around salaries and compensation from employer to employee means there is more opportunity for everyone to be paid equitably and for a problem to be addressed where there is one, sometimes it can be unintentional on the employers part but by keeping the discussion open, the opportunity is there to fix it.
Money is Empowerment
Open conversations about money enable employees to better understand their own financial wellbeing and needs. Discussions about salary, bonuses and raises or let’s face it ‘ how to earn more at the same company’ are important and career progression is important for an increased quality of life. Creating an environment where employees feel comfortable talking about money and earning potential is empowering, it allows them to take control and not shy away from the conversations which often leave employees feeling underpaid and undervalued.
Put it on the job advert
It’s not just your existing employees who value salary transparency, it’s your potential and future ones too. Salary is one of the first things job seekers look at and organisations who are upfront with this information are instantly more attractive. It stands to reason if the salary is on the job advert the organisation is automatically transparent about it - it’s right there in public. Job seekers don’t want to go through the process only to find out the salary is uncompetitive or simply not what they need or want. Honesty is always best so publish the numbers on the job advert and don’t say ‘ competitive salary’ if that’s competitive in the market you’ll publish it…
It’s time to stop being funny about money
It may be uncomfortable at first, especially for employers where it’s just not been the done thing in the past but however you look at this, the benefits for you and your employees are obvious, increasing trust, encouraging fairness, improving recruitment and retention and creating a workplace where employees feel empowered to talk openly about money and finances.