Here's how the wage gap causes you to lose your best talent:
When pay disparities drive your best employees to leave
, hiring new employees at higher salaries is a practice that, in particular, increases the number of departures among those who bring the most value to their organizations, thereby triggering a harmful domino effect: those who remain have less confidence in their organization because when people feel they are being treated unfairly, morale and engagement inevitably plummet
How does the"pigeon effect" cause your employees to lose trust in you?
The "pigeon effect" is when you tell yourself that you’re probably doing too much for your employer relative to your pay and that you’d be better off looking elsewhere. Top talent has already come to systematically suspect their employer of favoring new hires, so they’ll regularly look elsewhere to see if the grass is greener on the other side.
4 Tips for Reducing the Risk of Losing Your Top Performers
Tip #1:
Check your pay stubs regularly and act quickly if you notice any discrepancies.
Tip #2:
Train your managers and recruiters on pay equity issues
Tip #3:
—Start preparing now for greater pay transparency
Tip #4:
Have conversations about money to break the taboo
It’s best to foster a more open culture around money
inspired by " Welcome to the Jungle"