Pay transparency is exactly what it sounds like, it’s the degree to which employers are open about what, why, how and how much employees are paid, and to what degree employees are allowed to share that information with others. Our goal is to eliminate confidentiality clauses so you can start the discussion with your colleagues about pay.
Pay confidentiality clauses only benefit employers. The concealment of pay allows more money to be allocated to those who negotiate more aggressively, those who threaten to quit, or those who are friends with the boss. Unconscious bias can also infiltrate salary decisions when pay is kept quiet. When pay is transparent, organisations must be able to justify each employee’s salary – which can eliminate or reduce bias, conscious or unconscious.
Pay transparency forces organisations to improve the way they attract and retain staff. It forces employers to develop well thought through, data driven approach to remuneration that is fair to employees and is proactive, rather than reactive. When pay transparency is part of an organisations remuneration policy it has been shown to have a positive impact on job satisfaction, employee engagement and productivity.
The FSU understands that within banking and finance there is a culture of secrecy about pay. Our campaign is to get your employers to agree to allow workers to freely discuss their pay and remuneration. This campaign is about shining a light on the 19% (2022) gender pay gap faced in our industry – and that means being able to start the discussion with your colleagues without fear of repercussions.
Harvard Business Review: Can Transparency Laws Fix the Gender Wage Gap?
Women's Agenda: Pay Secrecy Feeds Pay Gaps. Transparency Can Change That.
Time: Should You Share Your Salary With Co-Workers? Here’s What Experts Say
Mercer: The Case For Pay Transparency. Why Sharing Is More Critical To An Elevated Employee Experience.
Forbes: Pay Transparency Is The Solution To The Pay Gap: Here's One Company's Success Story
PayScale: What Is Pay Transparency & Why Does It Matter?
National Bureau of Economic Research: Do Firms Respond to Gender Pay Gap Transparency?
Harvard Business Review: Research: Gender Pay Gaps Shrink When Companies Are Required to Disclose Them
Take the pledge to start the discussion on pay transparency in your workplace.
The national gender pay gap is 14.1% – on average women earned $263.90 less than men each week.
In the finance industry the full-time gender gap is 19% (base salary for full-time workers).
The total gender pay gap (total remuneration including bonuses and incentives) is 28.5%. The gender pay gap did fall 1% in the last year, but without some big changes it will take a generation for the pay gap to be eliminated!
Data from WGEA website: https://www.wgea.gov.au/data-statistics/data-explorer