I was interviewing OpenComp customers to understand their biggest product needs. The question was, “describe the most common emotions you feel when administering comp in your company.” The fear arises when People leaders send managers into the room to discuss comp decisions with their direct reports.
These are their biggest concerns:
Determining whether or not it’s the messenger or the message itself adds to the weight on leaders’ shoulders. According a recent Bamboo HR Report, 33% of employees feel negatively about their pay, up from 23% in 2024, and only half said they were “somewhat satisfied” with their most recent increase, down from 64% last year. Additionally, most employees feel that their CEOs are out of touch.
Clear, well-structured, transparent pay programs with extensive manager training and feedback loops to ensure the message is delivered in the right way. Transparency is the real deal. A recent article in the Harvard Business Review says it better than I can:
“Instead of maintaining an old-fashioned approach to pay, where secrecy reigns, managers should develop pay transparency policies that fit the information environment of their workforce. In doing so, employees can base their ideas about fair pay on accurate information from their managers, instead of relying on gossip and online rumors.”
In the past, it was difficult for many companies to follow this playbook because of the difficulty in procuring comp data and using it to develop and implement a clear pay strategy. When you cut corners problems inevitably surface down the road. When the damage appears, you are already past the point of no return with your top performers heading out the door. There is no reason anymore to let it get to that point. Many executives are afraid to be transparent, but if the company doesn’t create its own narrative, someone else will, and it’s usually wrong.
– Bobby Benfield, CEO of OpenComp
