PAY SECRECY

FAVOR OR AGAINTs IT?

https://youtu.be/iNgB-j4-5HY
Should pay be secret? How much about the compensation structure should employees be told? It is a
useful thought exercise for employers to consider how easily they could explain to their employees why
each employee earns the dollar amount he or she does. Is the pay of individual employees really aligned
with business strategy and execution priorities?

https://youtu.be/wr1Bfoae6PY
While sharing salaries might raise privacy concerns, some leaders have found that keeping them secret
might be hurting employees, causing dissatisfaction and hiding discrimination…it may even be the
reason the gender wage gap is so hard to close.

The positive impact https://youtu.be/J1rcKY-_yyE

“I was underpaid by 10grand and didn't get that raise until I left the company and was asked to come
back. It was great to finally get paid what I was worth at the time but also it was terrible feeling like I had
to leave to be taken seriously”

BENEFITS OF PAY TRANSPERANCY

Employees might be happier “when employees are able to compare, they might realize they’re being
paid market rate and spend a lot less time being dissatisfied”

Companies can close pay gaps “In the private sector, where the majority of companies don’t have pay
transparency policies, women earn 79% of what their male counterparts make”

Companies can control the narrative “There’s more information that’s available in the marketplace
that’s accessible to employees and job candidates. If an organization doesn’t form its own pay method
on transparency, someone else will — and it probably won’t be a complete message.”

DOWNSIDES OF PAY TRANPERANCY

Companies may hire or retain fewer people “can render it more difficult to hire talented staffers at
lower rates, means that companies will be able to hire fewer people on tight budgets”

Transparency could pit employees against each other “When you see everyone’s performance, some
people might not be motivated because they feel jealous,”

Pay differences could be taken out of context “may exacerbate employee frustration”