Know Your Worth — How Pay Transparency Can Change The Game
Pay is a topic that keeps surfacing in every industry. Are employees fairly compensated for the work they do? How wide is the gap between executives and the managers carrying out most of the work? Is it a livable wage given today’s cost of living? Advertising is no exception from this issue, and the tension is showing up in retention — particularly among younger employees.
One way to bridge the gap between employers and employees is open conversation, which starts with pay transparency. Neverland, an independent brand strategy and creative agency in the UK, found that only 14% of agency employees believe their employers are transparent about salaries, yet 72% say transparency is important (via Campaign UK). Since then, Neverland launched “Equal for Equals”, a worldwide pledge inviting agencies to commit to six principles, including publishing promotion criteria and allowing employees a way to confidentially challenge pay decisions.
Salaries within agencies are improving, but the question now is whether employees are being compensated for everything they do. Agency work means juggling many clients, which often bleeds into longer hours or taking over larger parts of projects. Roles sometimes get switched around due to constraints, and employees still feel underappreciated when it comes to pay. It’s no surprise they want clearer communication. They are the ones on the ground keeping the company running.
Employees are not the only ones noticing; state governments are stepping in too. From the Poster Compliance Center, California has now required employers with 15+ employees to include pay scales in job ads, with penalties of $100 to $10,000 per violation. New York follows a stricter threshold, covering employers with only four or more employees. Transparency isn’t meant to be a legal box to check, instead serving as a certainty that employees are paid what they’re owed. Some states also require employers to share an employee’s current pay range if requested. However, the conversation is always painted as taboo and many don’t know to ask or where to begin.
The bottom line is that if advertising agencies want to survive this next stretch of a shaky economy, retention is a place to start. Agencies that explain how pay and promotion decisions are made will be the ones coming out with an edge. Younger employees are more informed than ever and have to be careful with their decisions as the cost of living rises. A company that doesn’t treat those concerns as valid will only fall through the cracks.