Are we paid what we are worth?

One of the most challenging questions that organizational and compensation practitioners faced in a resource-scarce labor market is "Are we paid what we are worth?" Depending on who we ask, what we read, and the perspectives we adopt, the organizations we work for may claim that our pay is externally competitive, and internally equitable. But, what is equitable, or fair? Who decides what is fair? Perhaps, it is better to be internally consistent with our pay policy than to be fair. We can be consistently wrong but we may not be fair, or can we? How long is a piece of string? Can we be fair if we are transparent?

In an attempt to be transparent, NTUC Singapore, a local conglomerate (co-operative) has taken the lead in publishing its employee age profile on its website www.ntuc.org.sg/ageprofile. The purpose of disclosure of the demography of its employee is in response to a call by its secretary general on companies to demonstrate their commitment towards age-friendly employment practices, ahead of the Singapore re-employment legislation that will take effect in 2012.

It is intended that such disclosure will "enhance the employability and re-employment of all workers, including older workers and women who form a significant potential source of labor supply". In addition, the disclosure, NTUC argues “aims to better recognize companies that practice age-friendly and fair employment". More importantly, NTUC disclose its employee age profile as a group on its website to give greater transparency on its employment practices.

For compensation practitioners, an understanding of the demography of an organization is the initial step towards gaining greater transparency on what is termed as "fair" employment practices. Perhaps, it may be insightful to know "who gets paid what?" in order to know if “we are paid what we are worth”. If we understand the pay practices of organizations of our "brick and mortar" nation builders, we may be better prepared to embrace their expertise, and lobby employers to include them as members of the "family". Many of our nation builders may heed the calls of our Singaporean leaders to address the labor shortfall in the Singaporean economy by deferring their retirement plans.

NTUC must be commended for taking the lead in sharing the demography of its employees on the Internet. Will NTUC complete the puzzle by sharing actual compensation data of its mature employees? If aggregate data on compensation and benefits of mature workers are made publicly available, we may be a step closer towards knowing if "we are paid our worth". It may also draw people back to employment, particularly those who require additional pocket money to pursue their indulgence.

“Are we paid what we are worth?” It is a difficult question to answer; the perception of people may be biased and perhaps emotional when it comes to money matters.