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PeopleFluent Guide to Improving Compensation Transparency

Improving compensation transparency is a journey most organizations want to begin, continue, or wish they had the tools to do more.

Our guide presents four critical steps to help you create a transparent compensation strategy that emulates top-performing companies, and enhances your compensation experience.

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PeopleFluent Guide to Improving Compensation Transparency

According to recent research by, almost 40% of companies report that they have transparent, open communication around pay. Top performing companies are significantly more likely to embrace transparency, at 47%.

To help you create a transparent compensation strategy that emulates these top-performing companies, this guide presents four critical steps that will enhance your compensation experience and your overall goal of becoming more transparent with your workforce and their compensation.


HR has always initiated the conversation with employees around compensation, but managers are increasingly called upon to help with communication around increases, incentives, and overall compensation. To have a clear understanding of the calculations and processes, we need to empower managers with the ability to see more than just the end result and let them behind the curtain to see what is going on. The question to ask first is: do we have a compensation system that is easy to understand and manipulate, and does it provide the right level of detail for managers to communicate and offer transparency? PeopleFluent provides a well-rounded approach to the compensation process and allows managers to view, based on their security profile, the right amount of information and data to speak to and be as transparent as possible to the employees that work for them about their compensation. The Worksheet Navigator provides HR, Administrators and Managers with a hierarchical approach to compensation data and allows for a vantage point into the employee’s salary, incentives, stock awards, bonuses and overall compensation calculations.


Compensation transparency doesn’t necessarily mean revealing all compensation information to your workforce. Both managers and employees require different levels of communication and insight into the right parts of the system. For example, few organizations have reached the level of transparency where they reveal to their employees the market studies they used to compare compensation by job title with that in the marketplace. Websites like Glassdoor, LinkedIn, and Facebook are increasing the boundaries of transparency and making it easier for employees to learn more about the salaries offered for their type of position. Engaging influencers (aka Managers) in your organization would mean educating and training them on your pay philosophy, pay strategies or pay practices so they can communicate more effectively. PeopleFluent has created a visual and engaging opportunity for company influencers and compensation professionals to communicate their compensation philosophy, as it exists today. The Compensation Mirror Dashboard allows for the opportunity to show the current status of compensation in different ways and provides a mechanism for open discussion and insight on where the company’s compensation compass is heading.


Companies today are faced with a changing workforce; baby boomers are retiring, Gen Xers are taking more management roles, and Millennials have now become the largest generation in the workplace. This change also means there is a level of transparency required in compensation that some are neither comfortable with nor equipped to carry out. Most Executives, who are baby boomers for the most part, would like to still follow the same procedures they have for years when discussing compensation with their employees, which is the customary annual review and single sheet of paper slid across the desk showing the employee what their merit increase consists of and a line for them to sign and approve.However, this one-sided compensation conversation won’t appease today’s workers, who want to ensure that they are being fairly paid. For example, some Millennials would prefer you makes things easy and just post their compensation statement on the company’s public website so they can download and compare with others in their position, company and industry. Complete disclosure of data and compensation information with every facet of your workforce can only be provided with a complete catalog of standard reports, ad-hoc reporting and a comprehensive compensation statement. PeopleFluent Compensation provides HR and Managers with the ability to compile the right amount of data to satisfy every employee’s appetite for information. Statements are delivered out of the box, but can be modified to show incentive calculation details as well.


Compensation professionals have been provided with tools over time that allows them to calculate to the most complex degree, and makes them feel comfortable knowing they have included all the pieces of compensation for the employee’s pay statements. Transparency is usually confined to rows and columns with very little ability to analyze the data from various vantage points. The struggle begins when there are a number of data sources, and you try to combine them with any sense of confidence. Even though 40% of employers report they have transparent, open communication around salaries with employees, only a small margin, less than 20%, plan to change their non-transparent ways in their compensation planning process for 2016. 2Why not provide your compensation professionals, HR, and managers with a tool that allows them to analyze and visualize the company’s complete compensation picture? Now more than ever, transparency is built around two factors, data and communication. You need to have the right data to communicate correctly, based on the various data sources throughout your HCM, Compensation, and Payroll applications.PeopleFluent’s Compensation Command Center provides a window into the different dimensions of compensation data and delivers different lenses to view and communicate compensation completely.