Why Pay Transparency Matters
To remedy pay inequity, transparency is necessary. Truths have to be laid bare for all to see and the info has to be accessible to at least companies’ staff for things to change.
As a consumer, I like knowing where each dollar I’m paying a company is going, as companies like Buffer disclose on their website.
As a business owner, if I ever hire employees (rather than contractors), I would at worst, ask my employees if they want to know what each other makes and my views on the topic for context. It’s important to have honest convos with your team members about decisions that directly affect them. Especially if they come from a different type of work culture.
My whole company structure would be a different beast entirely. I absolutely believe in pay equity and transparency, as well as profit-sharing opportunities at the nexus point of seniority, value, and efforts.
If people feel like they’re being paid fairly and/or handsomely, maybe they wouldn’t be as concerned about their earnings relative to their colleagues.
Also, pay alone doesn’t tell the whole story. You could make a ton, but still, end up broke between pay periods because of your expenses and/or obligations. Thus, if pay is disclosed, perhaps benefits like insurance, sick pay, etc. could be as well so that employees have a fuller picture.
Pay transparency can work in the proper context, if its purpose among the staff is understood, and if all pay throughout a company is disclosed for at least all employees to see, if not the public at large.
Maybe it’s just that not simple. Maybe it’s so simple after all.
