Pitfalls of Pay Transparency

Pitfalls of Pay Transparency
Author: Katharina Brütt
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

Wage transparency regulation is widely considered and adopted as a tool to reduce the gender wage gap. We combine field and laboratory evidence to address how and when wage transparency can be effective and explore the role of belief adjustments as a mechanism. In the field, this paper studies a German wage transparency policy that allows employees to request wage information of comparable employees. Exploiting variation across firm size and time, we first provide causal evidence that this regulation does not affect the gender wage gap. In an online laboratory experiment, we study whether the failure of this policy hinges on two aspects: (1) the endogenous availability of wage information, and (2) the absence of performance information. Our data underline the importance of both factors. In contrast to endogenously acquired wage information, exogenously provided wage information does increase overall wages. So does the provision of performance information. However, none of these types of information reduce the gender wage gap. Wage information even deters women from entering negotiations.

Exposing Pay

Exposing Pay
Author: Peter Bamberger
Publisher: Oxford University Press
Total Pages: 257
Release: 2023
Genre: Equal pay for equal work
ISBN: 0197628168

"Pay, and particularly others' pay, is a topic of interest to all of us. While we may deem it inappropriate to ask our boss what others in the organization are earning, that doesn't mean we wouldn't like to know. Nor is this due merely to curiosity. Knowing the figures on others' paychecks is important because, lacking such information, it's difficult for us to assess how fair our own pay is, whether we are justified in seeking a raise, or whether it's worth our while to seek our fortune in some other organization or career. Moreover, we might look favorably upon greater transparency in pay-related matters not only as employees, but also as citizens. Greater pay transparency might serve as a means to (a) better ensure that labor markets efficiently match individuals with those employers most able to leverage their talent, and (b) make it harder for employers to discriminate, whether intentionally or not, against women, minorities, and other disadvantaged groups with respect to pay"--

Pay Transparency and Its Effects on Employees

Pay Transparency and Its Effects on Employees
Author: Markus Lehner
Publisher:
Total Pages: 55
Release: 2021
Genre:
ISBN:

Pay transparency has become a topic of controversial debate, both in academia and in organizations. Some of the organizations are raising the level of pay transparency to heights that were considered almost unattainable only a few years ago. However, pay transparency has not yet fully taken hold in business, and there is still a need for research in academia. The purpose of this paper is to scientifically investigate the effects of pay transparency on employees, in particular how and to what extent pay transparency influences employees' work engagement. The findings of the analysis show that pay transparency has a statistically significant effect on the work engagement of employees. There is a small to medium direct positive effect of pay transparency on work engagement and a small indirect positive effect of pay transparency on work engagement via distributive justice, where the link between pay transparency and distributive justice is moderated by group identification. The results show that at least average level of group identification is necessary for the indirect effect to occur. Moreover, the research conducted shows that strengthened group identification leads to a reinforced indirect effect. The direct and indirect effect was analyzed using a moderated mediation model with N = 299. The data were collected through an anonymous employee survey in German-speaking countries. To the best of my knowledge, this is the first attempt to analyze the effects of pay transparency on work engagement using a moderated mediation analysis. Keywords: pay transparency, work engagement, distributive justice, group identification.

The Decisive Manager

The Decisive Manager
Author: Barbara Mitchell
Publisher: Red Wheel/Weiser
Total Pages: 226
Release: 2023-03
Genre: Business & Economics
ISBN: 1632652013

The Decisive Manager is an ideal resource for anyone, at any level, who manages people and the problems that arise. It's an essential read for working out issues between coworkers, addressing problem areas, and getting everyone on track to succeed. People issues. They seemingly arise out of nowhere and just don't go away. It's critical that managers handle them right. As a manager, you need to know so many things about managing people, but you don't even know what to ask! The Decisive Manager can help. With examples of typical situations that managers encounter and advice on how to handle them, it's an easy-to-use guide for people managers and has information on hiring to firing, and everything in between. Finding and Hiring the Best Talent: recruiting, interviewing, job posting, job offers, onboarding, and more. Creating a Positive Employee Experience: employee engagement, retention, and employee motivation. Paying and Rewarding Employees: compensation transparency, employee wellness and mental health, and rewards and recognition. Helping Employees Grow and Develop: creating a learning culture, strategies for doing so, and the manager's role in employee development. Understanding Policies and Practices: the role of policies, applying them to specific situations, harassment and office romance. Ensuring Graceful Endings: layoffs, terminations for cause, exit interviews and more. The important issues surrounding remote and hybrid work are also addressed, including how to best support your staff, onboarding from afar, and keeping accountability yet flexibility for all. Concerned about navigating the changing workplace and avoiding legal pitfalls? There are questions and essential answers about these issues, too. Managing people correctly is critical to every manager's success. The Decisive Manager will help with those unexpected challenges that arise too often. This is an essential read for all who lead. "Practical. Relevant. Easy to grasp. I wish I had THIS book when I became a manager." --Mack Munro, Founder & CEO, Boss Builders

Pay Transparency

Pay Transparency
Author: Gowri Ramachandran
Publisher:
Total Pages: 37
Release: 2015
Genre:
ISBN:

Pay discrimination, like many forms of discrimination, is a particularly sticky problem. In many instances, just as with other forms of discrimination, it is unrealistic to allocate all the blame and burden for its continued existence on a single actor, whether it be an employer or employee. Thus, the traditional civil rights regime in which an individual actor is held liable for the discrimination does a poor job of dealing with this problem. I propose an intervention - pay transparency - that would help prevent, root out, and correct the discrimination in the first place, instead of relying solely on after the fact blame and liability. Pay transparency - the ability for employees to find out what other employees in their workplace make - is rare outside of public employment, and cultural norms against talking about one's income may make it frightening to some readers. Yet, unlike many other approaches to reducing seemingly “blameless” discrimination, such as targeting unconscious discrimination, or potentially counterproductive “debiasing” efforts, incentivizing pay transparency can fit very comfortably within our legal framework. By turning pay transparency into an affirmative defense to pay discrimination claims, this preventive measure can be woven neatly into our current approach to civil rights enforcement and notions of individual responsibility.

Why Pay Transparency Regulations are a Strategic Management Opportunity

Why Pay Transparency Regulations are a Strategic Management Opportunity
Author: Tamara Montag-Smit
Publisher:
Total Pages: 0
Release: 2023
Genre: Pay equity
ISBN:

Pay transparency regulations are designed to close the wage gap. Research shows that despite broad assumptions to the contrary, women do negotiate on salary. It also shows that when pay information is paired with performance data, it leads to clearer comparisons and fairer negotiations and can motivate people to perform better. Robust appraisal systems can make pay transparency an opportunity to improve performance rather than a compliance burden.

Equilibrium Effects of Pay Transparency

Equilibrium Effects of Pay Transparency
Author: Zoe B. Cullen
Publisher:
Total Pages: 0
Release: 2021
Genre:
ISBN:

The public discourse around pay transparency has focused on the direct effect: how workers seek to rectify newly-disclosed pay inequities through renegotiations. The question of how wage-setting and hiring practices of the firm respond in equilibrium has received less attention. To study these outcomes, we build a model of bargaining under incomplete information and test our predictions in the context of the U.S. private sector. Our model predicts that transparency reduces the individual bargaining power of workers, leading to lower average wages. A key insight is that employers credibly refuse to pay high wages to any one worker to avoid costly renegotiations with others under transparency. In situations where workers do not have individual bargaining power, such as under a collective bargaining agreement or in markets with posted wages, greater transparency has a muted impact on average wages. We test these predictions by evaluating the roll-out of U.S. state legislation protecting the right of workers to inquire about the salaries of their coworkers. Consistent with our prediction, the laws lead wages to decline by approximately 2% overall, but declines are progressively smaller in occupations with higher unionization rates. Our model provides a unified framework to analyze a wide range of transparency policies, and reconciles effects of transparency mandates documented in a variety of countries and contexts.

Pay Transparency and Productivity

Pay Transparency and Productivity
Author: Cédric Gutierrez
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

Taking advantage of the staggered timing of shocks to the availability of wage information for US academics we show that, across a range of metrics, transparency causes no decrease and, in some cases, results in an increase in performance outcomes. However, productivity responses predictably vary based on what transparency reveals. At the individual level, we find that those inequitably overcompensated increase their effort, while those inequitably under-compensated decrease or do not change their effort. At the organizational level, we find that the productivity decreases when pay transparency reveals inequity. Our study provides one of the first field-based empirical investigations of the productivity consequences of wage transparency and points to the importance of delineating the effects driven by equity as opposed to equality of pay.

Global Practices on Effective Talent Acquisition and Retention

Global Practices on Effective Talent Acquisition and Retention
Author: Christiansen, Bryan
Publisher: IGI Global
Total Pages: 554
Release: 2024-06-03
Genre: Business & Economics
ISBN:

Studies have indicated that employers across the globe face difficulties in filling critical roles, sparking a worldwide "war for talent." This talent war, once a temporary market condition, has now solidified into the "New Normal." Leaders recognize that success in this era demands the construction of optimal teams for strategic competitive advantage amid global uncertainty and hypercompetition. As explored in detail within the pages of Global Practices on Effective Talent Acquisition and Retention, this book serves as an indispensable guide for scholars and practitioners navigating the intricacies of talent management in the current global scenario. This project aspires to create a comprehensive reference material delving into diverse aspects of current global talent realities. It aims to provide scholars and practitioners with recent empirical, practical, and theoretical research on talent acquisition and retention practices worldwide. The emphasis is on sustainable practices that drive organizational success across multiple industries. The impact of this publication will resonate in both application and the direction of future research.