Can Pay Transparency Reduce Employee Turnover?

Clock Image
7 Minute Read
Posted by Lila Huelster

What is Pay Transparency? 

Pay transparency is the practice of openly sharing employee salary information. This information may be disclosed publicly on job postings or at a certain stage in the interview process, or involve employees having access to company salary ranges or bands.  

Pay transparency is growing more popular among all industries, including farms and agribusinesses. Some cities and states have pay transparency laws in place, with others in the process, leaving businesses no choice but to share certain pay details. While many agriculture companies may feel uneasy about the idea of pay transparency, it could actually benefit their business long term by reducing employee turnover. 

How Can Pay Transparency Reduce Turnover? 

Fostering Trust and Fairness 

Allowing employees access to pay information promotes transparency and trust within the organization. Employees tend to value a company’s openness about compensation, which can help build trust between staff and management as well as between other employees. This promotion of trust and fairness can also positively contribute to your company’s overall culture. 

Driving Higher Productivity  

When team members are made aware of their pay potential related to promotions or performance-based incentives, they may become motivated to better perform in hopes they will reap those rewards. Pay transparency can help promote healthy competition among employees, driving higher productivity and performance. Employees are more likely to stay with an ag company when they are engaged, motivated, and working towards goals in their roles.  

Reducing Bias and Pay Inequities 

Implementing pay transparency requires a company to carefully assess and reevaluate their pay structures and practices. When compensation details are accessible to the public, employers are more likely to adjust their current structure to be more consistent, clear, and fair overall. This transparency and clarity can help retain employees who may have otherwise held speculations about the future of their own pay, or their peers’ pay, causing them to look for greener pastures.  

Better Candidate Experience 

When it comes to the hiring process, being transparent about pay allows for a smoother experience for both the candidate and the hiring team. The more upfront your company can be about its offerings, the easier it is for a candidate to know if the role is the right long-term fit for them in terms of compensation and future growth opportunities.  

Companies who choose to withhold pay information until it’s time to extend an offer to a candidate may find that many of their offers are being declined or negotiated. If the candidate must go through an extensive negotiation process before accepting the offer, it may not leave the best taste in their mouth and start their journey with your company on the wrong foot. Providing a form of pay transparency as early as possible in the hiring process can limit wasting time entertaining candidates who in the end will not be a compensation fit.  

Learn more about how pay transparency can affect the hiring process. 


Pay transparency looks different for every agriculture organization, and unless you are under a city or state pay transparency law, it’s up to you to define how transparent you want to be. When working towards achieving pay transparency, remember that the goal is to provide employees with an increased understanding of their current pay, future potential pay, and the process behind certain compensation decisions and structures of the company. 

Implementing pay transparency can reduce employee turnover within your agribusiness by enriching your culture with fairness and trust, reducing bias, increasing employee productivity, and providing a smoother hiring experience for candidates. 

Struggling to find and retain talent for your ag organization? At AgHires, our team of recruitment experts live, eat, and breathe the agriculture industry. Whether full-service recruiting, job posting packages, or free hiring tips and resources, we’re ready to help you with your hiring needs. Contact us today! 


Pay transparency is growing more popular among all industries, including farms and agribusinesses. Discover how pay transparency can benefit your ag business long term by reducing employee turnover. 
Lila Huelster

Lila Huelster

Lila Huelster is the Marketing Coordinator at AgHires. Her long-time interest in agriculture led her to pursue a bachelor’s degree in Agribusiness Communications where she graduated from Southeast Missouri State University. Lila spent her first two years with AgHires as a Recruiter, with a prior background in social media marketing and copywriting. At AgHires, she is passionate about using her recruiting and marketing expertise to create helpful resources for employers and job seekers across the industry.