Salary Transparency
February 5th, 2008 | Categories: off topic, strategyWages and salaries have traditionally been a taboo water cooler topic around the workplace. It’s almost as if people have something to hide. In large big corporations, bureaucracy and politics play a big role. But in smaller firms and start-ups this isn’t usually the case. Therefore, I see no reason why secrecy is such a big issue around money. Transparency would remove any doubt and provide a new motivation tool.
Salary transparency would flatten the hierarchy and create a whole new sense of culture. I think any small organization could benefit greatly from this. The ability to view co-worker salaries would force companies to compensate properly - based on experience, education, and performance - rather than politics and executive judgment.
Seriously though, why shouldn’t it be like this? Obviously, a 45-year old worker is likely to be making a lot more than a 25-year old based on knowledge and experience. But this provides motivation for the younger worker - something to strive toward. Performance should definitely be taken into consideration.
I bring up this point because it is one of the few examples of politics and bureaucracy in many small firms. So why not eliminate it? I think that all companies should post salaries on the wall, in clear view, for everyone to see. Revolutionary idea? Not really, but it would motivate employees to work harder and put the slack asses out of a job.