How about we start by breaking that awkward silence and talk about salaries. Most of the people are used to salary being a secret.
A 2010 survey found about 23% of private-sector workers said pay discussions at work were banned outright. Another 38% said discussing their salary with colleagues was discouraged.
Research from Tel Aviv University found employee performance decreased when salaries were kept secret. The study paid 280 undergrad students to complete a computer matching game and handed out bonus pay depending on how well they performed. Half the participants were only told about their own performance and bonus pay, while the other half were given the same information for themselves and the three others in their work group. Some of the students were paid bonuses only based on their own performance, while others were paid depending on how well their work group performed as a whole. The study found those who didn’t have access to pay information about others in their group performed worse. And those who didn’t have transparent pay information and were paid based on how well their entire group performed, performed even worse.
In a gist, salary transparency not only boosts productivity but also reduces tension and it opts for a fairer world. Through salary transparency people get empowered and get better at salary negotiations since now they know what they make and what their peers make hence breaking the unnecessary wall of secrets created by management for eg, to hire 2 employees of same level with completely variant salary figures.
Ultimately, this is what salary transparency is aiming for: fair pay, and employee trust in that fairness. This opens up even more possibilities not thought before by enabling wiser career decision making, salary analytics, pay equity and confidence through transparency.
Salary matters. So does the fairness of it.