<p>Pay gaps are a huge problem in companies around the world. On average, women earn less than their male counterparts. Women of colour may earn over $1 million less in lifetime earnings due to unequal pay.</p><p><br></p><p>Some companies are starting to address this problem. However, organisations often only identify the symptoms and fail to correct them: low starting salaries for people from marginalised communities, discrimination during promotions and appraisals, and other factors.</p>

Pay gaps

<p>Many leaders still encourage secrecy related to compensation. </p><p>Line managers can play an important role in changing this culture:</p><ul><li>As a line manager, <strong>you are between your direct reports and the leadership team</strong>. You know how compensation and appraisal decisions influence your team's motivation and performance. </li><li>A survey found that when employees understand how salary decisions are made and can freely discuss their pay, they feel valued and more likely to trust their organisation. As a manager, <strong>you can normalise these conversations</strong> by learning how to talk about them with your team.</li></ul>

Taboo pay conversations

<ul><li><strong>Create clear salary ranges for different positions on your team</strong>. Work closely with leadership and your HR department on setting benchmarks. Make this information public so that your direct reports have clarity around where everyone stands.</li><li><strong>Be transparent about salary while hiring</strong>. Include the salary range when you advertise for a role. Evaluate compensation based on skills, expectations, and responsibilities for the role.</li><li><strong>Conduct quarterly or annual reviews with each team member</strong>. Discuss and review their compensation and ask if they feel they are fairly compensated for their tasks.</li></ul>

How to talk about equal pay with your team

<img src="https://hbr.org/resources/images/article_assets/2021/11/A_Nov21_25_1352492264-01.jpg" width="630" height="355"><div class="caption" dir="ltr">
				<span dir="ltr">HBR Staff/Getty Images/nadia_bormotova</span>
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		<span dir="ltr">Summary.&nbsp;&nbsp;&nbsp;</span>
		<span dir="ltr">Even with the staggering data on pay gaps around the world, talking about compensation is still a taboo at work. While changing this culture of silence needs to start at the top, line managers, especially new and young ones, have an important role to play,<span dir="ltr">...<button dir="ltr">more</button></span></span>
	</div><img src="https://hbr.org/resources/images/article_assets/2020/10/Ascend_Logo_2020_2x.png" alt="Ascend logo" width="105" height="25"><p dir="ltr">Where your work meets your life. See more from Ascend <a href="https://hbr.org/insight-center/ascend" dir="ltr">here</a>.</p><p dir="ltr">On average, women make <a href="https://www.payscale.com/research-and-insights/gender-pay-gap/" dir="ltr">82 cents</a> per dollar earned by their male counterparts. For <a href="https://leanin.org/data-about-the-gender-pay-gap-for-black-women" dir="ltr">women of color</a>, the numbers are worse — and this compounds over time, with over $1 million in lifetime earnings lost due to unequal pay.</p><p dir="ltr">While some companies are beginning to address this problem by conducting <a href="https://hbr.org/2020/11/how-to-identify-and-fix-pay-inequality-at-your-company" dir="ltr">pay equity audits</a>, their efforts are hardly enough. Too often, organizations merely identify the symptoms: low starting salaries for people from marginalized communities, insidious discrimination during promotions and appraisals, and other factors that worsen existing gender and racial pay gaps at work. Ultimately, they fail to actively correct these unfair practices.</p><p>Further, pay conversations remain taboo in the workplace. Many leaders still reinforce cultures that encourage secrecy related to compensation. While changing this culture of silence needs to start at the top, line managers, especially new and young ones, have an important role to play, even if they’re not the ones calling the shots.</p><p dir="ltr">As a line manager, you are the link between your direct reports and the leadership team. That means you have unique insight into how compensation and appraisal decisions impact your team’s motivation, performance, and career growth. In fact, one <a href="https://www.fastcompany.com/3056975/the-transparent-pay-revolution-inside-the-science-and-psychology-of-open-" dir="ltr">survey</a> found that employees’ perception of whether they are paid fairly is a top predictor of job satisfaction. When employees understand how salary decisions are made and are free to discuss their pay with colleagues and managers, <a href="https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/pay-equity-audits-and-transparency-foster-trust-shrm-research-shows.aspx" dir="ltr">they feel valued and are more likely to trust the organization and its leaders</a>. But when people are unclear about these decisions, trust is easily broken.</p><p>If you’re a manager, you can normalize difficult conversations around pay by learning how to talk about compensation with your team. In doing so, you will not only be creating a more transparent culture, but you will also establish yourself as an ally and push the agenda of equity forward.</p><h2>How to talk about equal pay with your team.</h2><h3>Create salary benchmarks.</h3><div dir="ltr"> 
<p dir="ltr">Set clear salary ranges for the different positions on your team and make this information public. This isn’t going to be easy as it will require you to work closely with leadership and your HR department on setting benchmarks. However, investing your time to establish this practice will give you and your direct reports clarity around where everyone stands. It will also set fairer standards for raises and performance awards, reduce the chance of pay disparities, and create a culture of transparency in which people know what they are being paid and how much room they have for future negotiations.</p> 
</div><p dir="ltr"><strong dir="ltr">Pro tip:</strong> Before you decide the salary ranges for various positions, do your research. Look at the salary range for employees in similar positions within your company, but also within your larger industry relative to your location. Take the cost of living into account. This will ensure you are setting a fair benchmark.</p><h3>Be transparent about salary while hiring.</h3><div dir="ltr"> 
<p dir="ltr">When advertising for a role at your organization, include the salary range, if possible. If this is not possible, make sure that you’re honest about compensation during the job interview. This helps candidates negotiate for pay within the range you are offering without divulging their salary history.</p> 
</div><p dir="ltr">Even during the interview, avoid asking candidates about their past salaries. Someone’s previous role and responsibilities shouldn’t be the benchmark. (Not to mention, <a href="https://www.hrdive.com/news/salary-history-ban-states-list/516662/" dir="ltr">it’s illegal</a> to ask this question in some countries and in certain areas of the United States.) Ensure that as a manager you’re able to evaluate compensation based on their skills, expectations, and responsibilities for the current role.</p><h3>Conduct regular reviews with your team.</h3><div dir="ltr"> 
<p dir="ltr">Set up a quarterly or annual one-on-one meeting with each team member specifically dedicated to discussing and reviewing their compensation. Ask them if they feel they are being fairly compensated for their tasks. This is particularly useful if you’re working on agile projects that require more work in certain quarters of the year.</p> 
</div><p>Year-round, you should be proactive and make it a priority to check in with your HR team around when employees are eligible for increases in pay. Check if the company factors in cost-of-living adjustments, competitive salary benchmarks, time spent in a specific role, and performance track records. Staying updated with this information will make your conversations with your direct reports more transparent and give them the opportunity to negotiate. These regular reviews can also provide you the evidence-based insights you need to understand and address pay disparities that may accrue on your team over time.</p><div>
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       </div><h2>How to advocate for equal pay for your team.</h2><h3>Understand the pay gaps among team members.</h3><div dir="ltr"> 
<p dir="ltr">As a new manager, you may be inheriting gender-based pay disparities. You’ll have to determine what these disparities are and who is being affected in order to close the gaps. Spend some time updating yourself on how each of your direct reports is being compensated, especially if there are two or more people in the same role.</p> 
</div><p>Pay attention to how factors such as gender, race, age, etc., might have historically affected pay and increments for specific individuals. You will need to be able to accurately explain the unethical reasoning behind the disparity to your boss and HR in order to make a compelling case for a correction.</p><h3>Make a case to eliminate pay gaps in your team.</h3><div dir="ltr"> 
<p dir="ltr">When you do get the attention of your boss or the HR team, be an all-in raving fan and stand up for your team. Talk about their strengths, accomplishments, milestones, and potential going forward. When you acknowledge the pay disparities among different direct reports, clearly explain how they came to be — whether it is because of someone being hired at a lower compensation or someone being overlooked for a well-deserved promotion. Then, make the business case for why it is crucial to eliminate pay disparities and pay people fairly. Explain how it impacts individual performance and growth and then connect pay equity to the core business outcomes and values of diversity, equity, and inclusion.</p> 
</div><p>Lean on your research around pay ranges for the various position on your team. Once you have established those benchmarks, share them with your leadership team or managers from different departments. The best time to do this would be in meetings specifically surrounding compensation practices, but if you are not included in those, you can also take initiative by scheduling time to discuss the issue with your boss or HR department.</p><p>Either way, these open discussions will highlight any disparities between teams and hopefully, help the organization find ways to address the gaps. Taking this step might seem intimidating but remember that being vocal about pay equity may empower other managers to advocate for their teams as well.</p><p>When you show intent and courage to speak about pay equality at all levels, it shows that you are a leader who cares for their people, advocates loudly on their behalf, and is committed to the company’s larger goal of eliminating systemic inequities.</p>

Talking about fair compensation shouldn’t be a taboo.

career

Career

<p>Where your work meets your life. See more from Ascend <a href="https://hbr.org/insight-center/ascend">here </a>. </p>

<p>On average, women make <a href="https://www.payscale.com/research-and-insights/gender-pay-gap/">82 cents </a>per dollar earned by their male counterparts. For <a href="https://leanin.org/data-about-the-gender-pay-gap-for-black-women">women of color </a>, the numbers are worse — and this compounds over time, with over $1 million in lifetime earnings lost due to unequal pay. </p>

<p>While some companies are beginning to address this problem by conducting <a href="https://hbr.org/2020/11/how-to-identify-and-fix-pay-inequality-at-your-company">pay equity audits </a>, their efforts are hardly enough. Too often, organizations merely identify the symptoms: low starting salaries for people from marginalized communities, insidious discrimination during promotions and appraisals, and other factors that worsen existing gender and racial pay gaps at work. Ultimately, they fail to actively correct these unfair practices. </p>

<p>Further, pay conversations remain taboo in the workplace. Many leaders still reinforce cultures that encourage secrecy related to compensation. While changing this culture of silence needs to start at the top, line managers, especially new and young ones, have an important role to play, even if they’re not the ones calling the shots. </p>

<p>As a line manager, you are the link between your direct reports and the leadership team. That means you have unique insight into how compensation and appraisal decisions impact your team’s motivation, performance, and career growth. In fact, one <a href="https://www.fastcompany.com/3056975/the-transparent-pay-revolution-inside-the-science-and-psychology-of-open-">survey </a>found that employees’ perception of whether they are paid fairly is a top predictor of job satisfaction. When employees understand how salary decisions are made and are free to discuss their pay with colleagues and managers, <a href="https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/pay-equity-audits-and-transparency-foster-trust-shrm-research-shows.aspx">they feel valued and are more likely to trust the organization and its leaders </a>. But when people are unclear about these decisions, trust is easily broken. </p>

<p>If you’re a manager, you can normalize difficult conversations around pay by learning how to talk about compensation with your team. In doing so, you will not only be creating a more transparent culture, but you will also establish yourself as an ally and push the agenda of equity forward. </p>

How to talk about equal pay with your team.

<p>Set clear salary ranges for the different positions on your team and make this information public. This isn’t going to be easy as it will require you to work closely with leadership and your HR department on setting benchmarks. However, investing your time to establish this practice will give you and your direct reports clarity around where everyone stands. It will also set fairer standards for raises and performance awards, reduce the chance of pay disparities, and create a culture of transparency in which people know what they are being paid and how much room they have for future negotiations. </p>

<p><strong>Pro tip: </strong>Before you decide the salary ranges for various positions, do your research. Look at the salary range for employees in similar positions within your company, but also within your larger industry relative to your location. Take the cost of living into account. This will ensure you are setting a fair benchmark. </p>

Be transparent about salary while hiring.

<p>When advertising for a role at your organization, include the salary range, if possible. If this is not possible, make sure that you’re honest about compensation during the job interview. This helps candidates negotiate for pay within the range you are offering without divulging their salary history. </p>

<p>Even during the interview, avoid asking candidates about their past salaries. Someone’s previous role and responsibilities shouldn’t be the benchmark. (Not to mention, <a href="https://www.hrdive.com/news/salary-history-ban-states-list/516662/">it’s illegal </a>to ask this question in some countries and in certain areas of the United States.) Ensure that as a manager you’re able to evaluate compensation based on their skills, expectations, and responsibilities for the current role. </p>

<p>Set up a quarterly or annual one-on-one meeting with each team member specifically dedicated to discussing and reviewing their compensation. Ask them if they feel they are being fairly compensated for their tasks. This is particularly useful if you’re working on agile projects that require more work in certain quarters of the year. </p>

<p>Year-round, you should be proactive and make it a priority to check in with your HR team around when employees are eligible for increases in pay. Check if the company factors in cost-of-living adjustments, competitive salary benchmarks, time spent in a specific role, and performance track records. Staying updated with this information will make your conversations with your direct reports more transparent and give them the opportunity to negotiate. These regular reviews can also provide you the evidence-based insights you need to understand and address pay disparities that may accrue on your team over time. </p>

How to advocate for equal pay for your team.

Understand the pay gaps among team members.

<p>As a new manager, you may be inheriting gender-based pay disparities. You’ll have to determine what these disparities are and who is being affected in order to close the gaps. Spend some time updating yourself on how each of your direct reports is being compensated, especially if there are two or more people in the same role. </p>

<p>Pay attention to how factors such as gender, race, age, etc., might have historically affected pay and increments for specific individuals. You will need to be able to accurately explain the unethical reasoning behind the disparity to your boss and HR in order to make a compelling case for a correction. </p>

Make a case to eliminate pay gaps in your team.

<p>When you do get the attention of your boss or the HR team, be an all-in raving fan and stand up for your team. Talk about their strengths, accomplishments, milestones, and potential going forward. When you acknowledge the pay disparities among different direct reports, clearly explain how they came to be — whether it is because of someone being hired at a lower compensation or someone being overlooked for a well-deserved promotion. Then, make the business case for why it is crucial to eliminate pay disparities and pay people fairly. Explain how it impacts individual performance and growth and then connect pay equity to the core business outcomes and values of diversity, equity, and inclusion. </p>

<p>Lean on your research around pay ranges for the various position on your team. Once you have established those benchmarks, share them with your leadership team or managers from different departments. The best time to do this would be in meetings specifically surrounding compensation practices, but if you are not included in those, you can also take initiative by scheduling time to discuss the issue with your boss or HR department. </p>

<p>Either way, these open discussions will highlight any disparities between teams and hopefully, help the organization find ways to address the gaps. Taking this step might seem intimidating but remember that being vocal about pay equity may empower other managers to advocate for their teams as well. </p>

<p>When you show intent and courage to speak about pay equality at all levels, it shows that you are a leader who cares for their people, advocates loudly on their behalf, and is committed to the company’s larger goal of eliminating systemic inequities. </p>

Managers, Here’s How to Advocate for Pay Equity

Pay gaps

Taboo pay conversations

How to talk about equal pay with your team

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