Exploring Wage Transparency With Virtual Financial Management Tools

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Not so long ago, job seekers didn’t know exactly what salary they could expect until the very end of the hiring process, leaving them in the dark about whether a job was actually financially viable for them. And then, once they were hired, salary information was a secretive topic in the workplace.

We write about this in the past tense, but unfortunately, this is still a practice in some companies, even though pay transparency is becoming an increasingly important topic across all industries.

Why is it that so many organizations still refuse to not only provide salary ranges in their job postings but also to encourage open communication among their employees about how much they’re getting paid?

It all stems from a false belief that transparency could pit employees against each other. The reality is that workers want pay transparency, and studies confirm this. According to an SHRM report, 82% of job seekers are more likely to apply for a job if the salary range is specified, while 73% are more likely to trust organizations that provide salary ranges than those that do not.

Thankfully, we live in the digital times, so there are numerous tools that can help usher in the era of wage transparency, plus help both workers and organizations better manage their finances.

Why Encourage Pay Transparency?

So, first, why is wage transparency important and beneficial for both employees and organizations? In short, being open and transparent about compensation can boost job satisfaction among employees, foster trust in the company, and ultimately help reduce pay gaps.

Unsurprisingly, employees are in favor of fair pay, and wage transparency can help promote it. When employees feel free and even encouraged to openly discuss compensation with their coworkers, this can help them not only get a good sense of where they stand in the company but also negotiate a better salary.

This can also help increase trust in the company – and when employees know they’re fairly compensated for their work, they tend to be more productive and loyal to the organization.

For companies, wage transparency can also bring about numerous benefits. For one, when organizations make their compensation data public, they tend to have many more job applications, which can go a long way in attracting top talent as well as retaining it.

And, as we’ve already mentioned, transparent salary policies can boost employee morale and satisfaction, which tends to have a positive effect on productivity and engagement.

So, to sum up, pay transparency can:

  • Discourage discrimination,
  • Help decrease the pay gap,
  • Boost productivity and morale,
  • Increase job satisfaction and loyalty,
  • Attract more job applications,
  • And reduce turnover rates.

The good news is, today, pay transparency is becoming the norm rather than an exception. This is partly thanks to pay transparency laws that are being enacted in various states and regions, not only requiring employers to openly post salary ranges for job openings but also prohibiting them from asking job candidates about their pay history.

How Digital Tools Can Help Promote Wage Transparency

If you’re looking to promote salary transparency and help your employees better manage their finances, consider investing in certain virtual financial management tools.

Payroll Software Solutions

If your organization is still calculating employee salaries manually, you’re not only wasting a lot of time, but are also missing out on encouraging wage transparency.

By integrating robust and comprehensive payroll software into your organization’s system, you can streamline payroll processes, as well as generate comprehensive reports on compensation structures. You can then give these reports to your employees to help them understand how their salaries and benefits are calculated.

Virtual Credit Cards

Virtual credit cards are a great way to allow your employees to purchase work-related products or services and have a streamlined expense tracking and reimbursement process. With virtual cards, your employees gain visibility into their business-related expenditures and the corresponding reimbursement policies, which can help foster accountability and contribute to overall financial transparency within the organization.

When choosing your virtual credit card provider, make sure it has a user-friendly interface, robust security measures and that it’s easy to integrate with your accounting software.

Employee Benefits Platforms

Employee benefits platforms are a one-stop shop for information on health insurance, retirement plans, and other job perks offered by employers. They usually come with handy tools that help your employees understand the monetary value of each benefit, including contributions to healthcare premiums or retirement matching programs. By having access to these platforms, employees can evaluate the total value of their compensation package beyond base salary, which can then help them make informed decisions when negotiating raises or even considering other job offers.

Featured image by fauxels

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