This informal CPD article, ‘Supporting DEI Goals With Transparent Pay Conversations’, was provided by 3R Strategy, an independent pay & reward consultancy based in the UK.
The ability to discuss pay openly and fairly remains one of the greatest challenges for both employees and organisations. Despite progress in many areas of workplace equality, conversations about salary and reward continue to be met with discomfort, misunderstanding, and inequity.
The Conversation Gap
Historically, underrepresented groups—including women, ethnic minorities, and those from different socioeconomic backgrounds—engage less frequently in pay negotiations and discussions1. This hesitation creates a conversation gap that can perpetuate pay inequities, even in organisations with well-designed reward frameworks.
This isn't due to lack of interest or capability, but often stems from several key factors:
- Historical precedent: Previous negative experiences when discussing pay.
- Social conditioning: Cultural norms that discourage open discussions about money.
- Perceived risk: Concerns about being labelled "difficult" or "ungrateful".
As a result, it’s not just individual salaries that are affected—it undermines broader diversity, equity and inclusion efforts throughout your organisation. When we actively encourage open dialogue about pay, supported by transparent structures and processes, it can help break down these barriers and create a more level playing field for everyone.
Beyond Posting Salary Ranges
While publishing salary ranges represents progress toward transparency, inclusive pay practices require much more. Meaningful inclusion happens when organisations create environments where everyone feels empowered to:
• Ask questions about pay and reward structures
• Understand their position within pay ranges
• Be more confident when discussing the monetary value of their work
• Challenge potential inequities when they arise
According to research from Josh Bersin2, organisations with transparent and well-communicated pay practices see 13 times greater employee engagement compared to those focusing solely on competitive salaries.
This highlights a crucial truth: how we communicate about pay matters just as much as what we pay.
Transforming Manager Capabilities
One of the biggest challenges is that many managers feel ill-equipped to have these pay conversations. Unfortunately, our Global Salary Planning Survey3 found that 7 in 10 organisations provide no formal training on conducting effective pay conversations.
This means that many leaders:
- Struggle to explain pay decisions.
- May unconsciously apply different standards in conversations with different demographic groups.
- Miss opportunities to address concerns before they escalate.
- Fail to create psychological safety when discussing sensitive pay topics.
Effective training should focus on developing both technical knowledge and conversational competence. This includes understanding pay structures, recognising and anticipating bias in discussions, and adapting communication styles to meet different employee needs.
Conducting effective pay conversations
Creating Multiple Pathways for Understanding
To support your pay conversations, it’s also important to make sure pay-related information is accessible to everyone. People absorb and process information differently based on numerous factors, including learning preferences, language proficiency, and professional background.
When it comes to pay information, taking a multi-channel approach ensures all employees can engage meaningfully with your pay philosophy.
Consider developing:
- Visual resources: Infographics illustrating pay bands and corresponding progression opportunities.
- Online tools: Digital resources allowing employees to explore how different factors influence pay.
- Simplified documentation: Plain-language explanations or glossaries of complex pay concepts.
- Translations: English might not be every employee’s first language, so think about offering your resources in multiple languages where possible.
By providing multiple ways to engage with pay information, you remove barriers that might otherwise prevent certain groups from participating fully in pay conversations.
Ingrained Support
The most successful organisations view inclusive pay conversations as a continuous journey rather than a destination.
Consider implementing:
- Structured discussion frameworks: Provide templates and guidelines that ensure consistent, fair and regular conversations about pay.
- Transparent decision criteria: Clearly communicate the factors that influence pay decisions.
- Regular calibration sessions: Bring managers together to discuss pay decisions and ensure consistency.
- Leadership modelling: Have senior leaders demonstrate openness about pay philosophy and decision processes.
- Feedback mechanisms: Create safe channels for employees to share experiences about pay discussions and raise concerns.
The Wider Impact
The benefits of inclusive pay conversations extend far beyond addressing inequities. When all employees feel empowered to discuss pay and reward openly and fairly, we often see:
- Increased trust in leadership
- Improved retention across all demographic groups
- Enhanced employer brand
- Stronger foundation for broader DEI initiatives
- More effective allocation of pay resources
By creating an environment where everyone can participate equally in pay conversations, you're not just addressing salary—you're building a more equitable workplace culture overall.
Taking Action
Start by assessing your current state: How do pay conversations happen in your organisation today? Who initiates them? Who seems comfortable engaging in them? Where might barriers exist for certain groups?
From there, you can start to build a more inclusive approach, starting with any current roadblocks:
- Train managers on both the technical and interpersonal aspects of pay discussions.
- Create accessible resources that demystify your approach to pay.
- Establish psychological safety for discussions about pay and reward.
Remember, the goal isn’t just to have more conversations about pay—it’s to ensure these conversations are meaningful and accessible to everyone in your organisation, regardless of their background or position.
By focusing on how we talk about pay—not just what we pay—we can make significant progress toward our broader equity goals.
We hope this article was helpful. For more information from 3R Strategy, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.
References:
1. https://record.umich.edu/articles/study-women-minority-faculty-are-less-likely-to-negotiate-pay/
2. https://joshbersin.com/2023/03/how-to-fulfill-the-dream-of-equal-pay-for-equal-work/
3. https://3r-strategy.com/global-salary-planning-report/
