Pay transparency has gained traction across industries, especially in the Architecture, Engineering, and Construction (AEC) sectors, where competitive compensation can be a significant factor in talent acquisition and retention. This approach to openly sharing compensation ranges or specific salary details addresses long-standing pay inequities, such as gender and racial wage gaps, and fosters a culture of fairness and trust.

Key Components of Pay Transparency:

• Detailed Compensation Ranges: Pay transparency policies can range from sharing generalized salary bands to fully disclosing individual salaries, depending on the organization and industry standards. In many regions, companies now include salary ranges in job postings, helping to standardize the expectations for new hires and giving current employees insights into their compensation relative to peers. Employers should base these ranges on role-specific qualifications, skill levels, and experience, ensuring they align with industry standards.
• Regulatory Differences Across States: Various U.S. states have adopted specific laws mandating pay transparency in different forms. States like California, Colorado, New York, and Washington require salary range disclosures for certain jobs, though the specifics differ. This variability in state regulations means that companies operating across state lines must stay vigilant to avoid penalties. Some regions mandate publicized salary ranges only on request, while others enforce them in all job postings.
• Encouragement of Equity and Trust: Pay transparency supports workplace equity by standardizing compensation and reducing unexplained disparities. Transparent policies increase employee trust, as staff can verify that their compensation aligns equitably with others in similar roles. This practice attracts job seekers who value organizations that foster transparency and trustworthiness.
• Historical Context and the Fight Against Wage Inequity: Salary disclosure as a method to address income inequality stems from legislative changes starting with the Equal Pay Act of 1963, which aimed to eliminate wage disparities between genders. Nonetheless, gaps still persist, particularly along gender and racial lines. Research shows that pay transparency positively impacts wage equality, especially within unionized and public sectors, where salary information is typically available. Some countries have seen wage disparities decrease following the implementation of transparency laws, a trend the U.S. aims to emulate.

Cultivating a Transparent Culture: Adopting pay transparency often requires a shift in organizational culture, affecting more than just the HR department. Leaders must work closely with managers to ensure that compensation aligns with transparent criteria and is communicated effectively to prevent misunderstandings or dissatisfaction. Additionally, clear job descriptions and defined paths for professional growth create a positive environment for discussing salary.

Adequate transparency also involves educating employees on the pay structure and explaining factors that affect salaries, such as education, experience, certifications, and tenure. Companies that provide this context can help employees understand why they earn what they do, avoiding frustration over perceived disparities.

Challenges and Pitfalls of Pay Transparency: While the advantages of pay transparency are substantial, implementing it can introduce several challenges. Transparency may reveal existing pay discrepancies, leading to initial morale issues or even employee dissatisfaction. For instance, if employees discover that colleagues in similar roles earn more, it can create tension. To mitigate this, companies must proactively address these gaps, possibly through salary adjustments or more precise communication on factors affecting pay differences.

Transparency may also expose companies to an increased administrative burden, as they must maintain accurate and consistent salary data that reflects fair pay practices. Organizations must carefully plan their approach to avoid potential legal issues while remaining transparent.

Positive Outcomes and Benefits: 

• Promotes Equity: Pay transparency has been shown to close wage gaps, especially across gender and racial lines. This standardization signals an organizational commitment to fairness, fostering an inclusive environment, and addressing systemic inequalities that can otherwise go unnoticed.
• Enhances Employee Trust: Open salary discussions strengthen trust, as employees feel secure knowing their pay is based on clear, equitable criteria. Trust is a powerful motivator, often resulting in increased engagement and productivity.
• Attracts High-Quality Talent: Job seekers increasingly favor companies that embrace transparency. This approach can particularly appeal to younger professionals who value integrity and fairness in the workplace.
• Boosts Organizational Performance: Companies that implement transparency policies often see improvements in morale and productivity. Employees who understand their compensation structures are more likely to stay engaged, reducing turnover and enhancing overall company culture.
• Encourages Fair Negotiation: Transparent pay practices give employees confidence in negotiating compensation, especially for roles with flexible salary ranges. This can benefit the AEC sector, where project demands and skill-specific roles vary widely.

Looking Ahead: In summary, pay transparency is a transformative practice that aligns compensation with values of equity and trust. The benefits can be considerable despite the challenges, such as managing legal differences across states or addressing internal pay gaps. Organizations that adopt pay transparency build more inclusive, resilient workplaces where employees feel valued and engaged, contributing to overall business success.

Want to learn more? Here are some resources!

SHRM – The Real Effects of Pay Transparency in Business

HBR - The Complicated Effects of Pay Transparency

SDA does not endorse any products or services mentioned, and SDA does not assume responsibility for any circumstances arising out of the interpretation, application, use, or misuse of any information presented. SDA recommends that the reader consult the appropriate legal, financial, or human resource counsel before implementing the information contained herein.

As we continue our CDFA Spotlight series, we’ve been thrilled by the positive feedback and engagement from our community. Each story has highlighted the dedication and hard work it takes to achieve the Certified Design Firm Administrator designation. We’re excited to keep bringing you more of these inspiring journeys. This week, we’re featuring Connor McCulloh, Operations Coordinator, with Environ Architecture, in Long Beach, CA. Her insights on the personal satisfaction of passing her exam are sure to inspire!

What motivated you to earn your CDFA certification?

I was motivated to have a comprehensive certification that was broad enough to cover certain aspects of the studio that I am responsible for, and gain a deeper understanding of the inner workings of an architectural design firm.

Did you have any concerns, or fears, about taking the exam? If so, how did you address or overcome them?

I was just mostly afraid of struggling to retain what I was studying- depending on what was going on at work and in my life, it was harder or easier to remember what I needed to, depending on what was going on.

What study tools did you find most useful (study group, CDFA-yoU materials, flash cards, other?)

What helped me the most was using the written material and creating my own study guides from that. Involves a lot of highlighting, lots of sticky notes, and lots of time.

Did you learn anything new, or surprising, while preparing for the exam?

While preparing for the exam, it was interesting to find out how much the exam material would be in direct reference to something I was involved in at work, and vice versa. It was enlightening to be able to fill those gaps where I had questions about specific firm procedures.

What section of the exam was the most difficult for you?

What I struggled with the most is reflective of where I am at right now in the studio- During the exam I had the most difficulty with the Project Management section. I have the most immersion into the other sections because of my role, and Project Management is the newest to me. The other sections are reflective of things that I have more experience in.

Did you have a CDFA mentor help you with the material? If so, tell us about that experience.

Aimee Mandala (also CDFA) who is our COO at Environ, over time has walked me through all of the compliance processes and standards that we engage in as administrators and that knowledge has been solidified thanks to her guidance. She has been instrumental to my personal development and growth as a professional and is also who introduced me to the SDA, sharing the certification process with me. So so grateful for her continuing support and mentorship over the years!

What role, if any, has your CDFA played in advancing your professional or personal development, growth, network or career?

So far, the CDFA designation is helping shape the professional that I am becoming, and encompasses the various roles and hats I get to wear.

Was your employer supportive of your CDFA goals and accomplishment? If so, please share how they demonstrated that support.

Environ supported me in going to the EDSymposium in South Dakota several Junes ago, and continued to support me in studying and immersing myself in the organizational and administrative aspects of my role. They were very congratulatory and happy to hear that I passed my exam.

What is your top tip to someone considering the pursuit of a CDFA designation?

For those considering pursuing a CDFA, I would recommend spending time creating a study guide and study schedule that works for you and your routine. I also recommend getting enough sleep to make it easier to retain information.

How did you, and your firm, celebrate your achievement? 

I was congratulated and received a card and some nice flowers!

What has obtaining your CDFA meant to you?

Having the CDFA designation is for me a tribute to the dedication I have to learn as much as possible about the AEC industry, and the ability to be more involved in the processes and methods employed by the studio.

Feeling inspired by our CDFA Spotlight features? If you're ready to elevate your career and join the ranks of Certified Design Firm Administrators, now is the perfect time to take the next step. The CDFA designation not only strengthens your skills but also positions you as a leader in our industry. Visit our certification page to learn more about the application process and how you can start your journey today!

A few years ago, I met with Zelda (fake name to protect the innocent) to talk about calendar scheduling so team meetings wouldn’t bump into each other. I asked Zelda how often a particular meeting was held, and she said it was held fortnight. Umm, what? I had to ‘fess up that I didn’t know what that word meant. Zelda said it meant the meeting would be held every two weeks.

Maybe it was just me, but I didn’t understand why she just didn’t say “every two weeks” or “bi-weekly.” After our meeting, it reminded me about an SDA session on business writing. The speaker said your writing should be clear, concise, and conversational. The speaker said to question whether it’s conversational by asking, “Can I say this out loud without sounding foolish?”  So yeah, I am not going to use the word fortnight when I’m explaining meeting occurrences to coworkers. I’m choosing to stick with every two weeks rather than “the meeting will be held on Friday fortnight.” (I searched on fortnight and according to vocabulary.com, the word is still used in Great Britain and that in the U.S., folks typically just say “two weeks.”)

Which brings me to Taylor Swift. The lyrics to one of her songs includes, “For a fortnight there we were …”. It’s a catchy song. I guess it’s less cumbersome to sing “For two weeks there we were…”.

It will be interesting to see if diehard Swifties start using fortnight conversationally, now that TS has brought it to the forefront.

Special thanks to  Judy Beebe, FSDA,  of the Seattle Chapter, for providing our current Word Nerd feature.