The Pay Deal19 Oct 2017
“We are an industry leading company and we commit to paying you fairly relative to the market and to similar roles within the company”. Most companies will make a claim like this, but very few actually divulge the information to back it up.
Why is salary information inherently private in today’s society?
Most companies these days encourage transparency, trust and openness; some even have these as company values. But very few companies disclose this kind of information.
Let’s look at the pros and cons for pay transparency.
- The quoted statement above is no longer assumed, but is truth.
- Effectively pushes to eliminate wage discrimination and the gender wage gap.
- Builds trust within the organisation.
- Could be considered as a breach of privacy for some.
- Makes salary negotiation hard and it becomes more difficult to attract people that want more than the market rate.
- Easy for competitors to poach your top employees, they know exactly how much to offer.
Considering this, one solution might be for leaders in an organisation to encourage discussion about salary. It is important to remember that some people want to be private about the amount they earn and that everyone should be made to feel comfortable in their place of work regardless of if they want to share this information or not.
Where do you think this whole thing originated?
What did I miss?