To help guide employers and HR professionals through this difficult discussion, Tanya Jansen, co-founder of beqom, recently shared some thoughts with BenefitsPRO.

How can leaders address employee pay concerns, especially amid rising inflation?

One of the most important responsibilities on leaders' plates is developing a fair and transparent compensation strategy. While addressing compensation is a year-round, ongoing process, it is especially important to address employees' salary concerns right now, as turnover is high across industries and inflation is causing some employees to question their pay for the first time. Opening up to employees and having honest compensation discussions is critical to removing employee concerns and giving them a sense of voice.

Before entering into conversations about salary with employees, leaders must be confident in their current pay practices and have an idea of what they can offer employees seeking a raise. Since these conversations are designed to help curb pay concerns, employers should be familiar with their budget and understand salary benchmarks within the company and at the industry level, so that any confusion or questions can be cleared up efficiently.

Although not every employer is able to offer raises to combat inflation, there are still plenty of other effective ways for employers to alleviate employees' concerns about pay and inflation, such as improving benefits, pay transparency and PTO policies. In fact, more than 75% of Americans say they would accept a lower salary if the job offers flexible working hours, and 68% would accept a lower salary if the organization provided more pay transparency than their current company.

What are some best practices for employers looking to better manage employee pay expectations?

Employers should focus on seeking out employee feedback on a routine basis to help manage employee expectations since understanding employee sentiment and needs are critical for managing compensation expectations. Leading regular conversations around salary, benefits and total compensation, conducting frequent anonymous surveys and helping managers weave pay discussions into one-on-one meetings, are all good first steps to help open the door for employees to share concerns and ask questions. From there, employers can more easily address concerns and take action to make changes that matter most to their people.

At the end of the day, open feedback and transparency are key to helping employees gain a better understanding of their earnings, and increasing trust with their employers. Trust is especially important during the Great Resignation since highly trusted workplaces see employee productivity increase by half, according to SHRM. If leaders are confident and fair in their pay practices, employees are likely to echo those feelings.

How can employers take employee feedback into consideration when developing pay strategies?

While leaders can't always implement compensation changes based on every piece of feedback they receive from employees, they can collaborate with them to ensure any red flag areas are noted, even if they cannot be changed. Acknowledging employee frustration and providing an explanation of why policies are set up the way they are can help employees feel their concerns are being addressed. Tackling other areas of compensation such as PTO and childcare benefits can also make employees feel their package is more competitive, even if the dollar amount on their paycheck doesn't rise.

Why do today's employees and job candidates value transparency and fair pay?

Employees are tired of compensation discussions feeling so taboo. Pay secretary can lead employees to question whether they are being paid fairly or not. They simply want to know why they are paid their current rate, and that they are paid equally to their peers in the same jobs with the same experience and background.

Right now, women are still only earning 82 cents for every dollar men earn, and without clear discussions as to why employees are paid their current compensation, employers are contributing to the widening of the gender pay gap, at least in perception.

Pay transparency ensures equity across gender, race, sex, etc., and removes the potential for bias in pay decisions, making employees feel more trust in their employer. Employers that prioritize transparency create fairer pay for all employees and prove that they are willing to take meaningful action to bridge gaps that others might not.

Read more:

• Pay transparency: Empowering and supporting employees' financial wellness
• The rise in compensation: What employers need to know to attract top talent
• 4 payroll trends that could help transform employee compensation