- 8 in 10 organisations believe they are transparent about pay with current staff.
- 7 in 10 employers disclose pay information to people outside of their organisation.
- 13% of employers are not at all transparent about pay and 26% only likely to be transparent with their leaders, rather than all employees.
Sydney, 22 June 2023 – Following the latest results on Australia’s tight labour market1, specialised recruiter Robert Half finds 81% of companies are transparent about pay with their staff to remain competitive in retaining talent.
Many employers have moved to pay transparency in some form in the last few years. Businesses have proceeded to being transparent about salary bands and the process to achieve those bands, while others prefer to outline exact salaries for each role within their organisation.
As a result, 22% of employers have made their salary information for each role available to all current employees, but a slightly higher percentage (26%) only share this information with leaders.
The 2023 Robert Half Salary Guide also finds that 70% of organisations share pay information externally, including to job candidates. The level of compensation transparency disclosed by organisations is still at the discretion of businesses. Employers should, at a minimum, have a clear framework for how their salaries are set within their business in order to retain staff.
Taking action to increase pay transparency
As businesses continue to close the gender pay gap, with the average female employee currently earning on average 87 cents for every $1 earned by the average male2, employers are taking several steps to increase pay transparency. The most common actions being:
- Listing the salary range in a job advertisement (49%)
- Outlining clear rationale and process to employees for how salaries are set (40%)
- Providing training to managers on how to have transparent salary conversations with their teams (25%)
"Pay transparency is known to foster trust and promote fairness in the workplace. The simple truth is that people want to know they are being compensated reasonably, and having clear communication as to how pay rates are determined can help relieve any concerns employees have about their salary,” says Nicole Gorton, Director at Robert Half.
“Compensation is a critical component of recruitment and retention. It’s important for employers to benchmark salaries using resources like the Robert Half Salary Guide to ensure they’re paying competitively, whether or not their company supports salary transparency. Professionals and job seekers can also refer to the guide to determine their market value.”
“During the hiring process, pay transparency can help build trust and make salary negotiations easier for both the employer and applicant. For existing staff, it empowers them with the knowledge of their true worth, but it also demonstrates a commitment to fairness and equity, ultimately resulting in a culture of open communication and mutual respect. On the flip side, a lack of transparency can brew employee resentment and ultimately lead to resignations,” concludes Gorton.
Are you an employer looking to enhance your pay transparency efforts?
Here are Robert Half’s best practices for pay transparency within a business:
Define what it means to be transparent
Pay transparency can come in varying degrees of meaning. Businesses need to clearly define what pay transparency looks like in their organisation – is it disclosing salary, or salary ranges, and who gets to know? Once this is done, everyone is on the same page with what it means to be transparent, and what steps need to be taken to enhance or improve transparency.
Companies also need to how be clear on how salary bands are set to ensure their staff are being paid the correct amount for their work.
Stay accountable
If pay transparency is a priority for your business, it is crucial to articulate it with willingness. Employees may approach leadership with questions, and if this is the case businesses need to be prepared to address any queries and concerns.
Regularly review and update salaries
Salary ranges are rapidly changing with shifts in the market, so businesses need to stay abreast of what their staff should be earning. To get a current, realistic view of the compensation landscape for a role, consult the Robert Half Salary Guide. The Salary Guide lists the current market rates for positions in finance, accounting, technology, HR, marketing, and business support.
2. https://www.wgea.gov.au/newsroom/WGEA-Progress-Report-2022
Robert Half - pay transparency - June 2023.pdf
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Notes to editors
About the research
The study is developed by Robert Half and was conducted online in November 2022 by an independent research company, surveying 300 hiring managers, including 100 CFOs and 100 CIOs, from companies across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management and trends in the workplace.
About Robert Half
Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm. Robert Half Australia has offices in Brisbane, Melbourne, Mount Waverley, Perth and Sydney. More information on roberthalf.com.au.
For more information
Courtney Fletcher
Courtney.Fletcher@roberthalf.com.au
Calvin Lu
RobertHalfAu@fticonsulting.com
+61 431 537 06