Across Europe and beyond, new regulations are encouraging organizations to be more transparent about salaries, requiring them to disclose salary ranges, justify pay differences, and address longstanding pay inequities. This shift towards pay transparency is necessary and overdue. However, there is a concern that by focusing solely on base salaries, companies might overlook another significant factor contributing to inequality: the bonus gap. Bonuses can be a substantial part of compensation, and disparities in bonus distribution can perpetuate inequality just as much as differences in base pay. Addressing both salary and bonus gaps is crucial for achieving true pay equity.
QUESTION: How might increased transparency in both salaries and bonuses impact workplace culture and employee motivation?
The bonus gap is where pay inequality hides
