Knowing Everyone’s Business
Do you want to know how much your co-workers make in salary? Fine, but what if they all knew what you make?
Pay transparency can work to the advantage of employees, so long as employees can accept the loss of financial privacy. A worker who is underpaid relative to colleagues at his/her level can use this knowledge to negotiate better pay.
More than eight in 10 creative executives interviewed (82 percent) by staffing firm The Creative Group said their organization refrains from publicizing employees’ compensation.
Of those respondents, 61 percent feel pay transparency would decrease staff morale.
But is there an upside to embracing an open salary policy?
According to the survey, the top benefits of sharing compensation information openly are increasing productivity (18 percent) and boosting recruitment and retention (17 percent).
However, more than one-quarter of executives (27 percent) believe the potential risks outweigh any rewards.
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