11 Jul 2023
Struggling to keep up with pay transparency laws? Here are six measures you can implement in your business.
As covered in our previous piece, the Australian government’s abolishment of pay secrecy laws is in effect, meaning employees are no longer legally prohibited from disclosing or talking about their pay to each other.
While a good thing, some employers may find the changes challenging and not know where to start when it comes to ensuring they’re pay transparent.
Thankfully, there are several proactive steps business owners can take if they find themselves in this predicament, said Kim Boyd, national sales and marketing manager at Frontier Software.
1. Implement clear and consistent pay structures
“Establishing a well-defined pay structure based on job roles, levels of responsibility, and market benchmarks can ensure transparency and fairness in compensation,” Ms Boyd said.
“Clearly communicate the pay ranges for different positions within the organisation to provide employees with a clear understanding of where they stand.”
2. Conduct regular pay audits
“Regularly review and analyse pay data to identify any pay disparities based on factors such as gender, race, or tenure.
“Pay audits help organisations identify and rectify any discrepancies, ensuring fairness and compliance with equal pay laws,” Ms Boyd said.
3. Be transparent with information
“Clearly communicate the criteria and factors that influence pay decisions to employees. This includes outlining performance metrics, skill requirements, and other relevant factors,” Ms Boyd said.
“By sharing this information, employees will gain a better understanding of how pay is determined, reducing confusion and potential disputes.”
4. Foster a culture of open communication
“Do not discourage open dialogue about pay within the organisation,” Ms Boyd said.
“Create channels for employees to ask questions, provide feedback, and express concerns regarding compensation. This can be done through regular employee surveys, town hall meetings, or dedicated HR channels.
“It is important to establish a safe and non-punitive environment where employees feel comfortable discussing their pay-related concerns.”
5. Provide training and guidance
“Train managers and HR personnel on the principles of pay transparency, including how to have constructive conversations about compensation,” Ms Boyd said.
“Equip them with the skills to explain pay decisions, address employee concerns, and handle sensitive discussions. This helps ensure consistency in messaging and embeds transparency as a practice throughout the organisation.”
6. Regularly review and update pay practices
“Stay updated with industry standards, legal requirements and best practices related to pay transparency. Regularly review and update your pay policies to ensure compliance and alignment with prevailing norms.
“This includes monitoring changes in equal pay legislation and making necessary adjustments to eliminate any potential biases or disparities,” Ms Boyd said.
7. Further support
As a premium and expert payroll and HR provider, Frontier Software has the expertise and ability to assist employers in navigating the implications of pay transparency.
“If leaders have concerns about implementing pay transparency within their organisation, Frontier Software can provide valuable guidance and support,” Ms Boyd said.
“Our team can help you assess the current state of pay practices, identify areas for improvement, and develop a customised solution that aligns with your goals and values. You can navigate the complexities of pay transparency, but it will be much easier with an expert in your corner.
“We are committed to partnership and ongoing support, so we work closely with our clients to understand their unique challenges before we develop tailored solutions. We can work together to develop a comprehensive approach to achieving pay transparency, streamline processes, and enhance your HR and payroll operations. It’s what we do.”
To get in touch with the team at Frontier Software, click here.
Article originally published on HR Leader, June 2023.