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Glassdoor study: Most leaders do not believe pay transparency affects talent retention

by Kavitha Sivasubramaniam
10/03/2023
bonus, Northern Ireland, pay
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Nearly eight in 10 (79%) people leaders do not believe posting salary details on job vacancy listings has an impact on talent retention, according to new research.

The survey by Glassdoor also found that views regarding talent acquisition are mixed, with a third (34%) believing that open positions with pay information attract higher quality applicants, while 37% do not think that is the case.

Glassdoor’s Economic Research team carried out the research with an elite group of UK and US executive-level people leaders at companies that employees rated one of the US-based website’s 2023 Best Places to Work.

Chief economist Aaron Terrazas said: “Pay transparency is a fraught topic for many people leaders, but it is increasingly the norm for companies at the forefront of workplace equity and employee engagement.

“Pay transparency is a topic people leaders cannot afford to ignore. Employees, job candidates and, in some cases, legislators, are pushing companies to embrace the practice. The overriding sentiment from the global people leaders surveyed by Glassdoor is that pay transparency is a central part of how they earn the respect of and retain their employees.”

The research further found that three in four (75%) think more pay transparency will result in compensation benchmarks being re-evaluated more frequently. While two-thirds (66%) of respondents believe it will be burdensome for teams to implement, the survey suggests that many think it is worth the effort.

Additionally, almost all (97%) employers were discovered to practice gender pay equity analysis, while eight in 10 (79%) do this for race/ethnicity. More than nine in 10 (93%) of respondents offer diversity training for line managers or those who interview for new roles.

While nearly three in five (59%) are transparent about pay with interviewees, just 31% provide this transparency internally. However, those that do have a higher employee ranking on Glassdoor’s Best Places to Work lists.

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