Among the many topics one shouldn't broach at the workplace, discussing salaries with coworkers has long been considered one of the biggest offenses. It's natural to feel squeamish talking about money, particularly when it's tied to the value of your skills and hard work. However, there is a lot of pay-injustice issues associated with the world of work today. Some of the most common questions and concerns raised by employees are:
I am getting paid unfairly
Why is a poor performer getting paid more than me?
I want to quit because I am being paid low
When employees don't know how their pay compares to their peers', they're more likely to feel underpaid and maybe even discriminated against. In fact, ask yourself this question -- Do you want to work at a place that tolerates the idea that you feel underpaid or discriminated against?
Sanoj Kumar, Program Director, People Function at Mindtree shares “The analysis derived from data recorded in our internal discussion tool and attrition reports indicated a trend in compensation related dissatisfaction among the campus batches, employees who are part of technical panels to interview external candidates, employees who work out of the client offices and our top performers.”
At Mindtree, the need to make the compensation process transparent came from various people situations seemingly pointing to one common aspect- the old school norm of “do not discuss your salary with others” did not work anymore.
Employees today are reward oriented and when they see someone else being rewarded differently – they expect clear guidelines laid down which would explain the differentiation. Lack of transparency would lead to employees deciphering that the system is unreasonable and unjust.
People Matters in association with SAP SuccessFactors brings you the journey of Mindtree in promoting pay transparency. With a transparent compensation process, the company was able to keep its top talent attrition below 15 percent. Additionally, Mindtree has been able to garner greater trust from employees on the fairness with which the organization treats them in internal anonymous surveys.
Click here, to read the Mindtree’s case for pay transparency.