From the Desk of Tiffani Daniels: Executive Reflection

May 20, 2024 | By Tiffani Daniels

Pay Transparency: Dollars and Sense

In April, I spoke on a panel on pay transparency hosted by the Federal Reserve Bank of Minneapolis.  

It was a lively conversation that brought together academics, business leaders, and policy experts to explore what’s going on behind the scenes with our current  labor market, and how it affects the experiences of low- and moderate-income workers. 

I wanted to share with you some of my take-aways from this important discussion:  

  • Pay transparency is good for business. Employers that share what everyone is paid  are more likely to retain and attract Black talent and foster inclusive workplaces. This can lead to  greater productivity and better morale, improving business outcomes. According to Ernst and Young, equitable pay may be one of the fastest routes to addressing inequity in the workplace. 
  • Pay transparency highlights the power of information. For employers, pay transparency is an opportunity to reduce wage disparities.  For Black employees, this information can increase their negotiating power, and help them identify job opportunities that align with their wealth building goals.
  • Pay transparency is one of many levers that can  improve economic growth and Black wealth creation in Minnesota. Last year, MBCRE successfully advocated for another: passage of the CROWN Act, which banned race-based hair discrimination in Minnesota, including in the workplace.  

MBCRE  will continue to advocate for policies — including pay transparency — that improve workplace belonging and inclusion. If you’d like to watch the recording of the Federal Bank of Minneapolis panel on pay transparency click here