As organizations refine their compensation strategies, many are also reconsidering how they communicate pay policies to employees. Most employees don’t fully understand how their organization determines salaries and raises and feel that their company's pay structures lack transparency.

Clear communication about salary changes is critical to maintaining trust and employee engagement. Companies with well-communicated compensation strategies see a higher level of employee satisfaction compared to those with unclear policies. Ensuring that employees understand how their pay is determined, along with opportunities for advancement, can strengthen retention and workforce morale.

The Growing Influence of Pay Transparency

A key factor driving salary adjustments in Hawaii is the increasing demand for pay transparency. An expanding number of states, including California, Colorado, and New York, and Hawaii now have employer requirements to disclose salary ranges in job postings. Job seekers are more likely to apply for a position if salary information is listed in the job posting. Younger workers are driving this shift, with most Gen Z employees supporting open pay discussions among colleagues. Hawaii has enacted law prohibiting employers from asking about salary history to prevent pay inequities, as have many other states. 

Companies Are Reevaluating Salaries Amid Changing Pay Practices

Businesses across Hawaii and the mainland are reassessing their compensation structures - adjusting to stay competitive, ensuring pay equity, and adapting to evolving workplace trends and policies. Many companies are aligning salaries with market rates, while others are focusing on internal fairness—ensuring employees in similar roles receive equal pay. With increasing policy changes at the federal and state levels, this is the first time since the beginning of the pandemic that such a high number of organizations are seeking to make significant changes to their pay strategies.

How HEC Can Help Your Frontline Managers Discuss Pay More Confidently

It’s okay for employees to ask questions about compensation, in fact it’s becoming the norm as pay transparency continues to grow. Compensation conversations help managers understand employee needs and address any pay-related concerns, leading to improved job satisfaction and reduced turnover.

Unfortunately, nearly two-thirds of leaders admit to lacking the confidence to effectively have pay conversations. That’s a lot of us who would rather avoid these critical compensation discussions. 

Whether it’s delivering raises, pay freezes, explaining pay gaps, or responding to requests for more money, pay discussions are vital to your company’s culture and employee satisfaction. 

Never fear! At HEC we’re here to help with our upcoming “Show Me the Money! How to Confidently Talk about Pay with Employees” webinar. On April 10th from 10:00-11:00 am HST, HEC experts will virtually share actionable strategies for tackling challenging pay conversations. We’ll dive into the factors that contribute to discomfort, ways to ensure transparency, and how to structure ongoing pay dialogues.

What You'll Learn:

• Shifting manager mindsets to comfortably discuss compensation 
• Proven strategies for navigating difficult pay conversations
• How to handle tough questions and emotional reactions 
• Tips for integrating compensation talks into your leadership approach 

Who Should Attend: 
Frontline Managers, HR professionals, and leaders responsible for pay decisions.

Register now for the opportunity to be more confident in your compensation conversations!