Do your employees know the salaries of their colleagues? Talking about salary is still taboo in Belgium. However, pay transparency can bring many benefits to your company. Ignorance is a source of often unfounded frustration.
The question, of course, is how far to push pay transparency. Of course, you should not put on the wall what everyone earns in your company. But being transparent about compensation will result in better understanding and more recognition among your employees. So let’s review six benefits of a company salaries Singapore policy within your company:
1. Your employees will be motivated
No matter how much pleasure an individual feels in his work, the salary remains an important motivating factor. It is not good to think that someone else is being paid more for the same work. By applying compensation transparency, you can at least explain to your employees why their salary is what it is.
If your company has a fair salary policy, you must make your employees aware of it. They will then demonstrate greater involvement in their work and will appreciate their remuneration more. Furthermore, knowing that a salary increase makes sense within the framework of a coherent policy will of course also contribute to nurturing their motivation.
2. Your employees will have a better understanding of their salary
The Belgian salary is a complex system and not everything is indicated on the pays lip. In recent years, the method of remuneration has fundamentally changed. The net salary is in fact only one of the elements of the total remuneration. But do your employees know all the components of their salary? Group insurance is a good example. Few employees know what it consists of precisely and how much their employer pays for it.
Of course, informing employees about these matters takes time, but it will certainly have a positive impact on your organization. When they have a complete view of the situation, they will better understand the nature of their salary and therefore appreciate it more.
It is even possible to go even further and allow your employees to have their say on the composition of their salary envelope. A survey carried out revealed that 4 out of 10 employees would like to be able to choose the exact nature of their salary themselves. A company car, a company bicycle… each employee has their own expectations and needs. This is called flexible compensation. A transparent salary policy applies this concept. This is also one more asset to weigh in the balance in a context of “talent war”.
3. You also emphasize non-financial benefits
If you offer a variable salary package including attractive non-financial benefits, do not hesitate to let it be known. We are not just talking here about a company car or meal vouchers, but also about training and the opportunity to progress within your company. These last elements, in particular, cannot be reflected on the pay slip. We therefore advise you to write a statement of benefits, a structural synopsis, per employee, including all the components of his remuneration, with supporting explanation.
If these elements constitute an important component of the corporate culture, they must be given due attention. For example, does your organization have a green and sustainable image? This is then a good reason to promote the company bike. Flexibility is a major parameter of your policy? In this case, your employees may be offered to work one day a week from home, which will have the effect of optimizing the work-life balance.
Welfare also plays a role in your salary policy. You are indeed responsible for the safety and health of your employees, which notably involves medical checks. Perhaps they also have the opportunity to indulge in sport or take care of their physical condition during working hours. Well-being is an essential factor in surrounding yourself with happy employees and happy employees are a source of happy customers.
An employee sometimes forgets these aspects but a transparent salary policy gives you an excellent opportunity to emphasize all the non-financial benefits.
4. You elicit a sense of fairness
Not knowing how much co-workers earn can give rise to feelings of unfairness. The gender pay gap has not yet been reduced in all societies, although Belgium certainly has nothing to be ashamed of in this regard. Pay transparency will be a strong signal for your employees, proving that gender equality is something important for your company.
To a certain extent, it is also normal for a given employee to earn more than another. Some functions have a greater added value and involve greater responsibility. However, this often gives rise to tensions, for example because of the link between remuneration and seniority. Experience can of course be rewarded in certain situations, but those extra few kilometers that appear on the odometer do not necessarily have to translate into a higher salary.
It is more important to link salary to skills, learning ability and productivity. Again, being transparent about this will lead to better understanding.
5. You avoid gossip and tension
Belgians don’t like to talk about money, even though this subject hasn’t been taboo for a long time in other countries (especially in the United States). A transparent salary policy, within a company, can contribute to a renewed openness between colleagues. Otherwise, the risk is to see gossip flourish and let employees compare apples with pears.
Someone whose gross salary is equal to that of his neighbor will not pocket the same net amount. Marital status and the fact of having children, in particular, have an impact on the net salary.
6. Salary negotiations will be easier
Having a transparent salary policy within your company will also facilitate negotiations with employees. By explaining their roles and responsibilities within the company, your employees will appreciate their salary more. By adopting an open attitude about the salaries of directors, for example, you will motivate employees more to seek to progress in the organization. More specifically, its worth emphasizing career opportunities when you want to attract new talent.
You are thus adopting a sustainable approach, both for your employees and for your organization. Your employees have the opportunity to constantly progress in terms of professional development while your company controls its costs by offering them an honest salary in line with market standards.
For more information you can see here company salaries Singapore.
