Should Your Company Keep Employee Salaries a Secret?
When the infamous Sony leak occurred sometime last year, it uncovered quite a few tidbits from the company, including an entire list of the top executives’ salaries. Look closer and you’ll realize that the recipients of the 7 figure salaries at Sony at 94% male and 88% white. This leak was bound to make other employees think: do I even have a shot at making my way up the corporate ladder? What is my position within this company? Companies must then decide carefully whether their employee’s salaries should be kept a secret within the organization or not. Either decision has pros and cons. The Case in Favor of Transparency People who favor transparency of communication, especially when it comes to salaries have this to say: Employees should be seen as business partners in an organization, therefore every bit of information should be shared with them. Coworkers discuss salaries amongst themselves anyway, so what’s the use of hiding information that is already out there. Workers know the criteria upon with they are judged—they’ll know what the company values and pays more for and they strive to align themselves along the company’s criteria. It creates a sense of competition amongst employees as each works harder than the next to make their way up the pay scale. The Case Against Transparency However, there are many companies that are still reluctant to make salaries public within the organization. Here’s why: Disclosing salaries may wreak havoc as people compare their pay. Employees that were otherwise satisfied with their work and salary may get disheartened when they learn than a coworker is earning more. That is, not knowing was better than knowing. It created unhealthy competition—teamwork is effective as heads butt instead of combine. Employees that earn more may feel embarrassed in front of their friends at work who earn less and bad feelings may occur. Employees may feel their worth or place in the office may be affective when people learn they are not earning enough. The management/HR will have to deal with employees constantly on their tail, arguing why they earn less than Tom, Dick or Harry. Protecting Your Choice When and if you find yourself in a situation where your organization is having the “salary talk”, you’ve got to make a choice. Ideally, this choice should have been implemented during the birth of the company. But if it wasn’t, now is your chance to pick a stance. A lot of managers try to find a happy medium which includes Stating salaries but hiding names of those who earn them. Stating industry salaries so employees are aware of benchmarks against which their own salaries can be compared. Whatever your stance may be, the real work is making sure that choice is protected. That’s where XNSPY employee monitoring software can help you out. Employees may have the salary talk over their office devices, and when they do, you’ll know which employee is going against office policy. (https://chainwitcher.com)
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