Article: Mindtree's case for pay transparency

A Brand Reachout Initiative#FutureOfWork

Mindtree's case for pay transparency

See what happened when Mindtree decided to go transparent with employees' pay.
Mindtree's case for pay transparency

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.

Topics: FutureOfWork, Compensation & Benefits

Did you find this story helpful?



Is technology the answer to new-age talent acquisition challenges?

On News Stands Now

Subscribe now to the All New People Matters in both Print and Digital for 3 years.

In the next three years, 120 million jobs in the world’s 10 largest economies will need retraining or re-skilling. To adapt to this new environment and help shape it, employees need to embrace continuous learning. Amid these changes, HR needs to not think, act, or be like traditional HR; they need to understand their job is now “human transformation”. In this issue, we will focus on what HR leaders and organizations need to consider today to prepare for tomorrow.

And Save 59%

Subscribe now