As companies expand their efforts to analyze and address pay equity issues, they are considering how transparency regarding those efforts can become a source of competitive advantage. That’s the view of software firm Syndio, a provider of pay equity analytical tools and consulting services. Syndio recently published a “
Pay Equity Communications Lookbook,” a short compilation of examples of how companies are approaching pay equity disclosures.
The disclosures highlighted in the Lookbook range from a detailed recap of quantitative metrics to a more general discussion of pay equity as part of a company’s overall Diversity and Inclusion (D&I) or Environmental, Social and Governance (ESG) strategies. The Lookbook organizes the examples based on a variety of categories, including:
- Disclosures intended for employees or prospective employees, advancing the view that pay transparency is a source of competitive advantage in the labor market.
- Disclosures with sophisticated graphics, designed to make complex data and statistics easy to understand for multiple stakeholders, including external audiences.
- Pay equity as part of broader efforts, where a more general discussion of a company’s commitment to pay equity is framed as part of a company’s overall D&I or ESG strategies.
Finally, the Lookbook discusses the value of communicating third-party assessments of a company’s pay equity efforts. It points out that some stakeholders will value neutral assessments of a company’s progress such as those offered by
Fair Pay Workplace or investors such as Arjuna Capital.
The bottom line: In developing pay equity disclosures, companies should start by defining the objectives of their communication. What is the goal of your disclosure? Who are your intended audiences, and what outcomes are you trying to achieve? Understanding your communications objectives will allow you to assess the various approaches described in publications such as the Lookbook and decide how each approach might apply to your situation.
