All things transparency and reward

If there’s one thing that has proven to be true over the last few years is that transparency in reward is here to stay. Long gone are the days where it was ok (or rather, reluctantly accepted) for reward topics to be shrouded in secrecy. Days where employees felt powerless to openly ask questions to understand what made up their rewards or how to influence them.

Thanks to on-going employee advocacy, innovative companies and groundbreaking legislation, attitudes on transparency have been on a transformative journey over the last decade. This should be great news for everyone!

From busting common misconceptions to exploring how businesses can navigate the upcoming changes, read on for our interview with experienced reward professional Miheer Soni about all things reward transparency.

Thanks for being with us today, Miheer. We’d love to start by hearing what good practice in reward transparency looks like?

My view is that good practice in reward transparency is grounded in three core principles: fairness, consistency, and aligning your approach with the company’s broader philosophy and values.

For both candidates and employees, transparency transforms the conversation. If you're seeking a new role or feel that you're not being compensated appropriately, knowing more about the market rate for your skills can completely change the way you approach these discussions. Equipped with the right information, you can frame the conversation more confidently and constructively.

Working in Reward, we often have access to sensitive market data, putting us in a privileged position. Personally, this has made discussions about my own compensation much easier, as I’m able to compare it against market standards. Having access to this information means you’re empowered to understand whether your reward package is competitive, which makes a huge difference, especially when navigating career decisions.

Why do you think that Transparency has become such a hot topic recently?

It feels like transparency has gained so much attention recently for a few key reasons. We're seeing a shift in values with the newer generation of employees. They’re more focused on fairness and transparency and are increasingly vocal about issues like pay. This generation isn’t afraid to ask questions or challenge the status quo when it comes to compensation.

Second, social media platforms or sites like Fishbowl and Glassdoor have given people a voice to share their experiences and compare salaries, but the problem is that the information is often scattered, inconsistent, and unregulated. There’s no clear control over the narrative, which can create confusion and even mistrust.

Additionally, while gender pay gap legislation and reporting is a step in the right direction, it has done little to actually close the gap. It highlights the issue but doesn’t necessarily lead to meaningful change.

Speaking of regulatory requirements, a very key piece of legislation about to be implemented soon is the EU Pay Transparency. How would you suggest companies start preparing for the upcoming EU Pay Transparency regulations?

I would suggest that the first step to prepare for upcoming changes in reward transparency is to understand the rules, timelines, and how different countries are approaching the issue. For example, Sweden is currently the only country that has issued a proposal for implementing the new directive, so it's important to keep an eye on any local developments that might affect your business.

Next, take stock of where your company stands in its reward journey. There are several elements to consider:

• Data Collection: Make sure you’ve gathered and maintained key employee data, such as location, role, and ideally, job descriptions.
• Internal Benchmarking: A simple test is to ask yourself: if you were to pick any employee at random, could you easily identify relevant peers for comparison?

Then, consider what you, as an employer, need to have in place:

• Competency Framework: A structured competency framework and job levelling should be assigned to employees.
• Salary Bands: Ensure that salary bands are clearly defined and ideally set up within your HRIS.

It’s also crucial to define your company’s reward philosophy. You need to strike a balance between following reward best practices and tailoring your approach to the unique culture of your organisation. This should come from the executive team—there needs to be a unified view on how transparent the company wants to be about pay. Take your leadership on this journey, educate them on the new legislation, and begin making informed decisions. For instance, if you have employees based in the UK, consider whether they will also be subject to the same pay transparency regulations as those under the EU directive.

At this stage, it’s important to lay the groundwork and be prepared, but the real specifics will become clearer over the next year as more details emerge.

In navigating the implementation of initiatives to foster reward transparency, what common misconceptions have you encountered?

This is an interesting one! One of the biggest misconceptions I encounter is the belief that reward transparency only benefits the employee or candidate, with no advantages for the employer. In reality, transparency can foster trust, improve employee engagement, and create a more equitable workplace, which ultimately benefits the organisation as well.

Another common misunderstanding is the assumption that transparency means everyone’s salary should be openly shared. In fact, transparency doesn’t require full disclosure of individual salaries across the board. It’s more about providing clarity around pay structures, criteria for progression, and how compensation decisions are made. The goal is to ensure fairness and consistency, without necessarily making every detail public.

What are your views on the role of technology and data in the context of transparency in reward policies?

I think when it comes to reward transparency, technology is key. Having the right systems in place is what makes transparency actually work. Sure, you can have all the right processes and the best intentions for answering questions, but without the tech to support those efforts, it’s hard to make it stick. Especially if you're not a small business—relying on offline spreadsheets or Excel just isn’t going to cut it in the long run. To really nail transparency, you need systems that can keep everything organized, accessible, and up-to-date.

And lastly, how do you keep up with news?

So many resources! Adam Horne, Gergely Orosz, Artila Metaliaj to name just a few of my favs.

There’s so much out there on LinkedIn, via HR newsletter resources and Employment lawyers. A variety of outlets and media is key to give you a full picture of everything that’s going on in the world of reward!