Latest news with #paytransparency
RNZ News
20-07-2025
- Business
- RNZ News
'Difficult conversations' for employers if staff chat about pay, lawyers say
Camilla Belich's bill would prevent employers prosecuting employees for discussing their salaries. Photo: VNP / Phil Smith Employers may need to be ready to face up to some uncomfortable discussions about employee pay, employment experts say. On Wednesday night, Labour MP Camilla Belich's Employment Relations (Employee Remuneration Disclosure) Amendment Bill passed its second reading, with National voting alongside the three opposition parties. The bill would ensure that pay secrecy clauses, which prevent employees from discussing their salaries with colleagues, would no longer be enforceable, meaning employers could not take legal action, if an employee talked about pay. Simon Schofield, a professional teaching fellow in University of Auckland law school, said it would be a positive move. "The underlying reason for the bill is to ensure that people who are discriminated against have the ability to see where they sit relative to other employees doing the same work and allows them to discuss that." He said some employers may have to deal with challenging situations, justifying why certain people were paid a certain rate compared to others. "Those questions may be uncomfortable for an employer to answer, but I don't think that means an employee should be dismissed for having those discussions. "If someone isn't feeling that they're getting paid well compared to their peers, they'll often just leave the employment relationship, but by ensuring that people can have these discussions, it puts the onus on employers to justify some of their decisions around pay, which sometimes… can have elements of unconscious bias involved and that feeds into the gender pay gap." Hesketh Henry partner Alison Maelzer said remuneration was slightly taboo, so people might be reluctant to talk about it anyway. "It's awkward both ways," she said. "If you find out you're being paid less than the person you're talking to or if you're being paid more than the person you're talking to, either way, it opens up all kinds of a can of worms." She said, if the bill passed, salaries could become a water cooler conversation for a while. "It might be prompting people to ask their colleagues a question they might not have done otherwise." Duncan Cotterill partner Alastair Espie said he saw people getting into trouble over pay disclosure "very infrequently". "It's an issue that is often difficult for employers to prove, so concerns about employees talking about their salary will often go unaddressed or be dealt with through more informal channels." Maelzer said she had been an employment lawyer for more than 20 years and had not been on either side of such a matter. "Perhaps employers are reluctant to take disciplinary action, because it could open up a can of worms related to the reasons why the employee is sharing salary details." She said agreements often contained a clause that made the terms of employment confidential. "The way it would be in there is not a specific clause, but when you're defining confidential information, client information, marketing strategy or whatever, you'd also include the terms of your employment in that list." She said the bill would not prevent employers doing that, but would prevent them taking action against an employee for remuneration disclosure. Schofield said action had been taken against employees who disclosed their pay. "Employers are entitled to treat pay as confidential information, therefore - because there's been a breach of that confidential information - employers may think they're entitled to dismiss an employee for that disclosure." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
16-07-2025
- Business
- Yahoo
Most employers worldwide feel unprepared for pay transparency laws
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. In a global survey, only 19% of organizations said they're ready for mandated pay transparency, with another 58% saying they're 'getting ready' for new laws, according to a July 10 report from Aon plc. Across North America, 25% said they're ready, while 59% said they're preparing. Only 16% said they're 'not ready,' improving slightly from 18% in 2024. 'Pay transparency is no longer a buzzword. It's a baseline expectation from employees and a regulatory imperative across an increasing number of jurisdictions,' Lisa Stevens, chief administrative officer at Aon, said in a news release. 'Yet our data shows a concerning lack of progress. Organizations that fail to act face risks not only in compliance, but in their ability to attract, retain and engage talent.' In the survey of more than 1,400 organizations across more than 40 countries, 71% said their state of readiness has improved during the past 12 months. At the same time, 60% said they implement pay transparency requirements based on geography, targeting efforts to where pay transparency is legally required. Most companies pointed to 'regulatory compliance' as their top motivator for transparency, which outpaced other factors by 40%. After that, employers said they wanted to improve the employee value proposition or align with corporate values. To that end, only 26% said they've conducted a pay equity analysis during the past 12-18 months, which suggests most companies continue to prioritize compliance over equity-focused action, Aon said. Beyond that, 69% said they publish salary bands during recruitment, but only 21% do so for all job postings, which may also indicate a compliance-driven approach, the firm noted. Aon advised employers to shift from tactical compliance to strategic action, especially with the EU Pay Transparency Directive scheduled to take effect in 2026. Only 30% of employers reported having a communication strategy for pay transparency, including manager training and communication plans from managers to their teams. In the U.S., fewer than 1 in 5 companies have a pay transparency strategy in place, according to a Mercer report. Despite that, 63% said they plan to share pay information internally and externally in a standardized way, and 56% said employees should have the same access to compensation data. As pay transparency regulations expand, companies have expressed concerns about adapting their practices, investing in pay equity and preparing for complex pay transparency requirements, according to a Syndio report. HR leaders cited inconsistent pay decisions as a major reason why their organizations seem unprepared. Recommended Reading North American firms are largely transparent on pay — mostly thanks to regulators, WTW finds Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RNZ News
16-07-2025
- Business
- RNZ News
Legislation that lets workers talk about salaries likely to pass into law
Labour MP Camilla Bellich. Photo: VNP / Phil Smith A Labour party member's bill that seeks to stop employers enforcing gag orders on workers talking about their salaries is likely to pass into law. Labour MP Camilla Bellich's bill - called the Employment Relations (Employee Remuneration Disclosure) Amendment Bill - passed its second reading on Wednesday night. Currently, employers can put pay secrecy clauses in workers' contracts , preventing them from discussing their salaries with colleagues. Bellich's bill would make pay gag clauses unenforcable, meaning employers could not take legal action if an employee does talk about pay. She told RNZ she was pleased to see the bill progress. "Ending the chilling effect of pay secrecy will allow employees to discuss their pay more freely, and allow any unfairness or discrimination in pay to be remedied." She said it was a "small step" towards "greater transparency and equality" in the workplace. The National Party supported the bill at first reading and indicated during the debate for the second reading it would continue to do so, meaning it could potentially become law. The acting chair of the education and workforce select committee Vanessa Weenink said the bill was a sensible step in the right direction. "I was proud of our parliament and proud of National's ongoing work to reduce the gender pay gap," she said. "I want to highlight the voluntary pay gap calculator for businesses and hope when this bill becomes law, that it opens up discussions about pay." ACT and New Zealand First voted against the amendment bill, and are likely to do so again at third reading. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Entrepreneur
26-06-2025
- Business
- Entrepreneur
The Job Interview Mistake That Causes Hiring Managers to Ghost
"Any questions for me?" Your answer could make or break an offer. These days, it takes an average of six months for job applicants to get hired for a new role, according to a recent Wall Street Journal report. Given that timeline — and the fact that some job-seekers might put in hundreds of applications before they receive an offer letter — it can pay, literally, to be strategic during the interview process. Many hiring managers will ask interviewees if they have any questions for them at the end of an interview. It's an opportunity for candidates to further express their interest in and qualifications for the role. Related: The Ultimate Guide on How to Prepare for a Job Interview There are a lot of great questions to ask in an interview — and some that might be best avoided, depending on your career goals. A new study from found that although pay transparency is the No. 1 most important thing gig workers look for in job listings, hiring managers will ghost one in 10 candidates who ask about pay during an interview. The lack of transparency around compensation can not only throw a wrench in an applicant's job search but also make it more difficult for employers to find the right talent. Related: 7 Mistakes to Avoid Making During a Job Interview, According to a Business Etiquette Expert One in four gig workers would never apply to jobs without listed pay, and 68% don't trust companies that hide pay information because they believe it means the job pays poorly (74%), has a high turnover rate (49%) or fosters a toxic culture (35%), according to the report. What's more, 20% of workers say that pay transparency in their industry has gotten worse, per SideHustles. Related: Why Do You Want to Work Here? Here's How You Can Ace the Question Every Time Hannah Williams, the Gen Z content creator behind the account Salary Transparent Street, told Entrepreneur that young professionals who want to make sure their salaries are fair should always be prepared to negotiate once they receive an offer — and wait 24 hours before accepting any new role. "Even if you're satisfied with the rate, tell them you need 24 hours to review the offer," Williams said. "This has not only helped me get more money in the final offer if the company is pressured to fill the role, but has also brought me peace of mind in thinking through and making my final decision."
Telegraph
23-06-2025
- Business
- Telegraph
My salary is none of Bridget Phillipson's business
How much do you earn? If that question makes you flinch, then you're in good company. I have never had a comfortable conversation with a colleague about pay, and I'm not sure I know anyone who has. British people are apparently seven times more likely to tell a stranger how many sexual partners they've had than what their income is, a University College London survey once declared. So if you're itching for some awkward water-cooler chat this afternoon, just ask your colleagues what they earn – and hey presto, everyone's feeling hotter. The Government is determined to banish this self-consciousness, concerned that our stiff-upper lip attitude benefits some far more than others. It is hard to call out inequality if nobody has any idea what anyone else earns. There are stories of mothers re-entering the workforce only to discover that the people they are managing are taking home far more than them. The Office for Equality and Opportunity, which is led by the Minister for Women and Equalities, Bridget Phillipson, is currently consulting on ways to break this taboo. The most eye-catching idea on the table is to force businesses to tell staff what their colleagues earn. That's not going as far as Norway, where everyone's tax return is fair game, but it would be a big cultural shift and could eventually pave the way for a Norwegian-style system where pay becomes a matter of public record. It sounds like a quick fix, until you seriously think about the implications of opening this Pandora's box. There would be the inevitable office infighting – furious colleagues discovering that the incompetent so-and-so they work with earns far more than they do – followed by some pretty demotivating conversations as staff are told that more experience doesn't necessarily mean more productivity or skill. Next would come an inevitable fudging of numbers by bosses eager to protect those on big incomes. When the BBC first decided to publish the salaries of high earners, the aim was to mark a new era of transparency. However, in reality, any earnings made through the BBC's commercial arm (which is not funded by the licence fee) do not need to be disclosed. TV chat show host, Graham Norton, acknowledged this loophole when he said that the list of mega earners is 'frustrating, because it's so inaccurate'. He added: 'There are people I know who make millions from the BBC who are just not on that list'. Radio host, Simon Mayo, has also dismissed the annual publication of staff salaries as an 'annual turkey shoot'. If things then did evolve into a more Norwegian-style system where all salaries are out in the open, then just think of all that salary snooping. People could end up hunting down the earnings of potential partners, former partners, enemies and tenants. The numbers could be dug out and weaponised by siblings in inheritance battles, landlords eager to push up rents or tech giants harvesting information for targeted adverts. And even if none of that did happen, the simple facts are in front of us – Norway still has a gender pay gap, with men on average earning 13pc more than women. The same problems remain. Everyone deserves their privacy. Although research suggests that we tend to overestimate the number of people who are wealthier than us and underestimate the number who are poorer, there's no way the publishing of everyone's salaries will create a more understanding, equal society. Previous studies have shown that the phenomenon of 'keeping up with the Joneses' is not about the people living in the same street or country as you, but about those in your inner circle – close family, friends and colleagues. People might not care if a stranger in their area knows what salary they're on, but they don't want the person they sit next to at work or their university friend to be able to dig up the figure and bring it up at a dinner party. This came up when American social media marketing site, Buffer, decided to start listing staff names, locations and salaries in a detailed public spreadsheet. In seconds, strangers can scroll from highest to lowest earner in the company, from the chief executive's £224,000-a-year salary to a 'customer advocate's' £61,000 figure (both are US-based). 'Someone felt that if their friends and family knew their salary, it might change the relationship they have with them,' Gascoigne said to the Huffington Post in 2016, before adding that this discomfort proved unfounded. Instead, he said there was a 'dramatic' rise in the number of people applying for jobs. It might have worked well for a start-up, but are our salaries really any of Bridget Phillipson's business? At the moment, nothing is off the table, although the most likely option if the Government ends up doing anything would probably be listing salary ranges in job adverts. That's already law in California and New York, but the verdict on whether these rules have made much impact is mixed, and the last thing British businesses want right now is more red tape. Bosses are already gearing up for the enormous raft of changes coming in the Employment Rights Bill, and won't have much patience for new rules which they deem unnecessary. The next generation of workers might just come to the rescue. According to a survey conducted by recruiter Robert Half, 86pc of Gen Z workers are happy to discuss their salaries compared to 59pc of millennials and 41pc of baby boomers. This point might crop up as the Government seeks evidence before making any decisions.
