In my latest episode of HRchat, I had the pleasure of speaking with Trapper Yates, VP of Global Compensation at HP. Trapper and I covered several timely topics, but the one that really stood out was the issue of pay transparency—a subject that’s been gaining momentum in recent months.
The Push for Pay Transparency
Trapper shared how HP, like many large companies, is navigating the wave of pay transparency legislation that’s been sweeping across the U.S. He explained that HP has moved to a policy of posting pay ranges for all U.S. roles, not just in states that require it. As Trapper put it, “We see the wave coming. Rather than managing it state by state, we’ve adopted this approach as a national standard.”
This move aligns with growing expectations from employees, particularly younger workers, who want to know how their pay compares to others. Pay transparency, as Trapper emphasized, isn’t just a trend—it’s an important step toward closing gender and equity gaps in compensation.
Challenges of Pay Transparency
While pay transparency has many benefits, Trapper was also candid about its challenges. One of the difficulties HP has faced is determining how to present pay ranges in a way that is both realistic and meaningful for candidates. As Trapper pointed out, if the range is too broad, it can be unhelpful. On the other hand, if it’s too narrow, it can create internal friction, especially when employees see their own pay compared to posted ranges for similar roles.
“We’ve had to find that middle ground,” Trapper explained. “We aim to provide candidates with a realistic range, while still giving flexibility for geographic differences and experience levels.”
What’s Next for Pay Transparency
As we discussed the future of pay transparency, Trapper shared his thoughts on the unintended consequences of making pay data more visible. He referenced a study where employees who discovered they were paid below the median for their roles were more likely to feel dissatisfied and even consider leaving their jobs. Interestingly, those paid above the median didn’t necessarily feel more satisfied.
The key takeaway? While transparency can promote fairness, it also needs to be managed carefully to avoid negative outcomes. Trapper believes the future of pay transparency will involve more education for both managers and employees about how compensation works and why certain pay decisions are made.
Skills-Based Hiring and Career Mobility
We also dove into the topic of skills-based hiring, another area where HP is making strides. Trapper explained how they’re using new tools to identify skills across the organization, which opens up more career mobility for employees. It’s an exciting development, especially for those who want to transition into new roles within the company without feeling pigeonholed by their current positions.
For anyone interested in the future of compensation, career mobility, and the growing trend of pay transparency, this episode offers valuable insights. Trapper’s expertise on these subjects gives us a clear look into how leading companies like HP are navigating these changes.
Listen to the full episode of HRchat to hear more of my conversation with Trapper Yates. You won’t want to miss it!