Why wondering what your colleague earns might soon be a thing of the past.
Curious to discover how much your colleagues earn? A growing number of employers will tell you. Countries like Finland, Sweden and Norway already publish precise pay and tax details for all workers. In the UK, public salary discussions have traditionally been taboo. Yet 56% of UK workers now support making earnings publicly available. Internationally, 27% of HR professionals say their company shares its salary ranges with employees or candidates – a step on the road to full pay transparency – and 22% say they’re likely to start within five years.
Transparent salaries are typically based on objective measures like role, experience and local cost of living, rather than nebulous assessments of “performance”. Pay transparency is motivating for employees, proponents claim, because the benchmarks for advancement are clear. There’s anecdotal evidence that it can result in more productive, satisfied workers, although critics suggest that being jealous of your co-worker’s pay packet could just as easily sap your motivation. Eliminating salary negotiations may benefit women, who are less likely to get pay rises when they ask for them. Making remuneration decisions public may also help close the gender, ethnicity and disability pay gaps, although it’s not a cure-all. The gender pay gap, for example, will persist if women continue to take on lower-paid roles.