Pay transparency alone does not eliminate pay gaps when organizations cannot consistently execute their stated pay philosophies. HR and compensation teams may build strategies for offers, merit increases, promotions, and transfers, but day-to-day hiring and retention decisions can become ungoverned. Recruiters and managers may make last-minute adjustments, and merit increases may reward loudness rather than performance. These inconsistencies create drift between stated values and actual pay outcomes, leaving employees unable to understand why they earn what they earn. Even when people know their salary, many cannot articulate the reasons behind it, often responding with confusion when asked why they make that amount.
"“If companies were merely consistent with the things they say they care about in their pay philosophy, and what they actually pay in the execution of offers, merit, promotions, transfers, the pay gap would basically be eradicated,” Maria Colacurcio, CEO of pay equity software company Syndio, told the audience."
"“HR and compensation teams spend months building thoughtful strategies. But then ‘that strategy hits the wild wild west,’ when recruiters are trying to land candidates and managers are making last-minute retention plays. Merit increases also often go to whoever is loudest, not necessarily whoever performed best.”"
"“All of that thoughtful strategy goes out the window, because all these daily decisions are just completely ungoverned, and so the output of that is where we end up [being] inconsistent,” Colacurcio said. “Those inconsistencies show up as pay decisions that drift from stated values, and employees that can't get a straight answer about why they earn what they earn.”"
"“Are people able to articulate why they make the salaries that they make? Absolutely not,” she said at the Fortune Workplace Innovation Summit. “When I ask them, do you know why you make what you make, they're like, 'what?'”"
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