Remote Working Could Help Improve Pay Transparency And Equity

As more organizations shift to hybrid and remote arrangements, workers no longer tied to a single geographic location may see increased transparency about their pay.

Companies with new remote and hybrid workers may be able to positively impact salary transparency and pay equity according to experts from Thrive HR Consulting.

Jason Walker, cofounder of Thrive HR Consulting, says that pay cut policies for employees who work remotely or relocate are empty threats, especially as the world continues to face a major labor shortage.

“If you’re paying people differently for remote work than in-person work, you have a lot of work to do as a compensation team to make sure that pay is fair and equitable,” said Walker. “I just don’t think you can do it. I think everyone has to be homogenized.”

Even more, states and cities have started enacting their own laws about salary transparency for employers. For instance, employers in Connecticut and Nevada must now provide salaries for job seekers when offering a job or after the initial interview.

Colorado provides some of the most transparent laws in the country, requiring employers to include salary ranges in all job postings, notify workers about promotions, and keep track of job descriptions and wage rate records.

With more employees not being tied to a single geographic location, the country may see an expansion of these pay transparency laws.

Even societal shifts have helped popularize these laws, with discussions about salary and pay inequities becoming less taboo.

“Leaders have to realize the genie is out of the bottle,” said Walker. “The shift is here, and we have to accept that.”