Pay Transparency Matters

October 17, 2016 Joe Militello

 

36571-pay-transparency-sfeaturedThe idea behind pay transparency is that it builds trust. Many companies, however, remain skeptical.

At Pivotal we support pay transparency as a way to promote equitable pay, demystify how employees are compensated, and foster a more inclusive and fair work environment. Many Pivotal employees agree, and they have advocated passionately for pay transparency. Our hope is that by increasing transparency around pay our colleagues will feel more connected to the company and its success.

So what are we doing at Pivotal?

We have analyzed and reviewed our compensation structure to ensure that our pay practices are equitable. We are pleased to report that in the U.S. we found that, for employees with similar roles and circumstances, women earn on average 98 cents for every dollar male employees earn and employees of color earn on average $1.02 for every dollar white employees earn.

We will leverage our data regarding pay to routinely identify, take action and eliminate unfair pay gaps. Pivotal has also signed the White House Equal Pay pledge, as a company that supports the advancement of equal pay.

We have shared with all employees Pivotal’s written pay practices to provide equal access and context about our compensation practices, and to remove some of the mystery around how compensation decisions are made.

The road to transparency

Pay transparency is not a strict set of practices, but rather, a logical approach to sharing pay philosophy, practices, and strategies. The benefits of transparency need to be balanced with individual confidentiality, and striking the right balance and tone will be an ongoing process.

In Pivotal fashion, we’ll gather feedback along the way, apply what we learn, iterate, take a balanced approach and continuously improve.

Pivotal employees are passionate about this topic. They care deeply that our values to “do what works”, “do the right thing” and “be kind” apply as much to our pay practices, as they do to any other part of our business.

 

About the Author

Joe Militello

Joe Militello is Pivotal’s Chief People Officer. In this role, Joe is responsible for leading Pivotal's worldwide People organization—including Total Rewards, People Operations, Recruiting, Leadership & Development, and Internal Transformation. Joe spends time with Pivotal’s most strategic customers advising them how to transform their company culture so that they can build great software in our digital world.

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