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transparency around compensation can be a motivation to work better, reduce turnover and ensure all workers receive equal pay for similar work
- Anubhav

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lower moral if pay is low, may lead to increased unethical behavior
- Anubhav

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improve trust and streamline expectations. @stefan p

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fluctuation might increase. Also here a bit of a story from SEA. Salary's are pretty much always know. I can ask any of my friends: how much do you make. Even co workers between each other. my staff also all know from each other, therefore we always have to be a bit careful when hiring. no secrets at work :)

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What comes to mind is that e.g. if salaries would be transparent in our team it could cause quite some dissatisfaction as we have people with same roles in different locations (Denmark, Poland, India). Even if the difference in salary is partly explained by living cost in the country etc. I think it would lead to feeling of unfairness and decreased motivation for people in lower paid locations.
/Rebecca Nabb

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As long as the salary difference seems fair (e.g. more responsibility, working harder, more experience etc.) it could improve motivation as below examples are something that many people can impact in their work and thereby they can impact their salary.
/Rebecca Nabb

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Vincenzo Saligari

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It could increase the perceived inequity.

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It could increase the perceived inequity.

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Vincenzo Saligari

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It provides clarity and motivates the team because they know that in a couple of years time, they will be earning that much. So less chance for perceived equity.
- Waleed Abdulhafiz

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It could shift the focus of the employees away from the other factors that could create motivation. Thus only the focus in on the financial aspect.
- Waleed Abdulhafiz

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Motivation can increase for those who want to get to a higher level; If the employees can see that the salary is fair and objective, this could result in higher trust and engagement.
- Steffen Stolz

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Transparency could cause tension and envy between employees; it could have a negative effect on the hiring rate of a company (i.e. salary is below market standard); if the employees are dissatisfied with the transparency this could lead to a reduction in motivation and productivity
-Steffen Stolz

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Transparency on salaries might increase productivity, reinforce better workplace wellbeing, and increase trust @Ipek Nakkas

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Disadvantages of salary transparency: harm to the workplace culture or unnecessarily higher staffing costs. @Ipek Nakkas

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- removes any doubt or uncertainty
-  shows what may be obtainable for a given position, or help incentivise people to work hard/develop to climb position that commands a certain desired salary

Andy

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- can create resentment
- those on a  lower salary in a given position may want immediate raises to at match counterparts
-  weakens hand of employer at negotiating table
- data protection issues

Andy

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1. Trust building
2. Motivation and high productivity
3. Narrow pay gap

-Gaurav

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1. Privacy issues
2. Resentment in less paid employees

-Gaurav Ahuja

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In transparent salary situation you have to limit the person into grading, competence matrix and other forms of corporate justice.  It reminds me of Soviet Union, to he honest - the system which wasn't effective for growth of shining stars and outliers. Sometimes you need to make money injections into someone's motivation for your specific reason (tied to a particular situation or deadline) and in case of transparency, there will be too much talks about what is right, and where is the justice (especially by his/her peers). Some folks are more elastic to compensation changes, others are not. You need to use right instrument for each situation and transparency limits the selection of available instruments.
- Artyom Prishchepov

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people shall have a clearer expectation about the salary in the coming years with expected promotions,thus shall be more motivated when they have a clear self-efficacy target./Huizhi Zeng

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resentment may grow when the people who have similar experience and performance find out that their salary payment hasa big gap without a clear explanation,the lower paid one may decrease their inputs to the company,or even chose to leave the organization./Huizhi Zeng

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Booster for motivation. If I do these and these activities, gain this and this additional education, have these and these attitudes and skills-I will earn xy.
Salary transparency gives quantitative expectations and a vision for future development.
@Jasminka

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If an organisation does not have matrix models, career progression models and assigns pay raises based on subjective or one-off situations it will for sure cause dissatisfaction of the employees.  When the expectations for a job position with the pertaining seniority are clearly defined the negatives turn into a positive, ie. motivation.
@Jasminka

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Knowing the compensation from my boss or his boss might motivate. As this indicated where to land in the future. More power more money. Means investing more time and higher focus on performance will pay off in future $.

//Gregor

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Basically, compensations are known somehow anyway. From outside as well between the peers.

Anyway, human being tend to celebrate envy whenever possible. Whether it happens between peers, “she/he cannot perform that great to earn that salary”, or in the neighborhood “the neighbor does buy a new car, he must earn too much money from his company” and so on…

Too much of transparency might harm relationships by its nature. Distrust, demotivation and dissatisfaction occur easier.

//Gregor

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It might provide a clear scoreboard and foster meritocracy in the organization, increasing trust in the process.

Klaus Bernauer

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-At the end of the day money decisions will never be 100% process oriented since always there will be the human factor behind the decisions, that means biases and political capital in place.
- Might create tensions within teams and peers, since the obvious evaluation is to check output versus input for each individual collaborators
- Challenge HR policies

Klaus Bernauer

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Salary transparency might increased productivity and trust. It would lead to less salary negotiations and might attract high-qualified workforce to work for the organization.
Hakim

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Salary transparency might lead to demotivation once they know their peers get paid higher than themselves. This might limit the organization to hire well high-qualified workers. The work quality might decrease and overall work climate may suffer. Hakim

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Average Salary Anonymous Transparency can increase:
-> Trust
-> Productivity via motivation
-> Clarify expectation
-> If done across all sectors company employees can really compare

- Daniele -

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Average Salary Anonymous Transparency can decrease:
-> using avg. I don´t see problems in terms of data policy
-> If the company has huge differences from peers it can lead to demotivation
-> If the company had a very low avg. people could leave the company
-> If there is a huge GAP between Top Managers and employees, questions can be raised and if not well answered it can lead to demotivation

- Daniele -

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It can increase motivation (depending on how it is done, as the article explains) and foster a sense of high-level transparency in the company, which can be an important cultural element of the organization.
- Douglas

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It can demotivate people who are paid low compared to his/her peers. Additionally, if the salary composition is not well structured, it can generate a negative adverse effect.
- Douglas

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it transparently shows the way things can go. also less grieve about what your peers are earning and skepticism
Felix

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The incentive scheme for over performers could be perceived as intended inequality, good contributions cannot be rewarded, annual inflation increases need to be mentioned, loyalty bonusses etc
Felix

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With transparent salary system, employees will clearly understand their career development route with salary package motivation.  If the company offered each position with much higher than market average level, then this company will attract the talent what they need. @ Hu Ying

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With transparent salary system, employees will clearly understand their career development route with salary package motivation.  If the company offered each position with much higher than market average level, then this company will attract the talent what they need. @ Hu Ying

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1. It creates a  sense of openeness and trustworthiness.
2. Gives a hint and motivates towards growth and advancement. when people see high salaries of their seniors.
Lucy

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1. May cause demotivation if there are very high discrepancies.
2. May lead to over-burdeming e.g people starting to borrow loans from the very well paid .
Lucy

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The transparency builds trust, nothing is hidden, believe in justice/fairness

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If there are no clear levels at the org, very flat salary hierarchy except for few "early starters" (often happens at startups) - it may cause frustration, feeling of injustice

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you can better assess yourself and also how the company assesses you. I find it best way to have clear role definitions with the corresponding salary.

In addition, employees who get along well sooner or later talk about salary anyway and that only leads to upsets. Because one of the tweo employees that talk usually feels underpaid after that kind of talk.

Marius

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The "disadvantage" is that with transparency, sooner or later you have to make up for or clean up any shortcomings. Otherwise, many more employees will feel unfairly treated and performance will drop. In addition, the classic games such as carrot hunting (if you do this and that, you'll get a raise) and the classic "a raise was actually impossible, but thanks to my efforts, it was at least enough for a little bit and now please be forever grateful" no longer work as good as they used to with transparency.

Marius

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Self-perception and external perception can differ

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Self-perception and external perception can differ

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Self-perception and external perception can differ. Even if injustices are perceived in the same positions, they may also be justified. However, this is not always apparent to the employee himself. People also often assess themselves "too well. True to the motto: 90% of those surveyed consider themselves to be above-average drivers (which, according to the figures, can't be true :-) ).
Such situations can also lead to envy and resentment, which worsens the work culture.

- Helmut Tautz -

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With transparency, there is less rumor and unfairness. Supervisors must be able to justify why one employee earns more than another. This helps communicate expectations to employees and provides a sense of fairness. Also, employees who earn more than their colleagues may be more likely to want to live up to that extra income and work even harder. In sports like judo, there are belt colors that everyone can see. When you graduate higher, you have to perform better. Nobody with a black belt wants to be dominated by a white belt :-)

- Helmut Tautz -

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As main advantage I see the aspirational part of it. If the salary policy of your company it is public, the ambition for promotion and the amount of work people will be willing to put in to achieve it will increase.

Diego de la Fuente

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This information can be use from competitors. If a company reveals low average salary, their employees might be contacted from competitors with higher payment policies. The same goes for the employees, they will tend to apply for jobs only where the salaries are at the top.

Diego de la Fuente

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When done the way the article suggests (transparency about average pay for a position), it may indeed enhance motivation and foster trust amongst peers.
Andreas

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Problem is that in reality there may be considerable paycheck differences amongst peers. Individual components of compensations may reflect individual histories in organizations, different standings amongst peers, etc. So these components may indeed make sense. However, full transparency on compensations would most probably lead to decrease in motivation and spur potentially harmful behaviour.
Andreas

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There should be transparency in terms of salary ranges per employee level. This would make it easy for everyone to understand if they are being respected or treated fairly. /Marcos

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Having full transparency has in my opinion more disadvantages than advantages. Employees can start comparing and if the comparison is not beneficial (50%), they will loose motivation, conflicts might arise and employee turnover will increase. /Marcos

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Salary transparency benefits minorities such as immigrants, women and young professionals. Typically, such minority groups are often paid lower salary than the average industry standards or even within the company standards. If the salary range or the average salary for the position is made public, such groups can negotiate better.

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Salary transparency will eventually lead to standardisation of salaries. In the long run, firms may find it difficult to use "salary increases" as an incentive or reward for a better performance. It could be difficult for firms to justify higher salaries for "rockstar" performers compared to their peers in the organization. 

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Salary transparency will eventually lead to standardisation of salaries. In the long run, firms may find it difficult to use "salary increases" as an incentive or reward for a better performance. It could be difficult for firms to justify higher salaries for "rockstar" performers compared to their peers in the organization. 

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- give employees more motivation
- provide a roadmap for their career to decrease turnover
- empower employees to work for promotion
Christian C

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It could make it harder to get good employees if you pay less than competitors. This is still good for employees but bad for the companies not able to pay more.
Christian C

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Depends, I suppose. Could increase feeling of equity, but only if you don't feel you're being underpaid.
Lewis

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For the employer, I think it can only serve to drive salaries upwards. Key question, I suppose, is whether they can extract an even more valuable increase in performance.

Could drive people out if they feel underpaid and nothing can be done about it for reasons like budgeting.
Lewis

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Salary transparency may increase the pressure for better results in the workplace and sometimes increase the pressure to get a promotion: the money in the next level can increase the perceived freedom, power, achievement, besides helping to cover needs (that currently are not covered).
Themis

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In case management reveals the peer salaries, strong dislikes will occur even when the numbers are the same: there will be wrongful perceptions of who is working harder and paid equally.
I consider that the best option is to give a salary range, and consider that everyone will be included in that range: having a chance to increase your salary to the upper limit will help avoid putting a face to the number of the higher limit.
At the same time, an employee would like to change a payrange alltogether via promotion, will know what promotion means in practice.
Themis

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Open salaries, clear professional grades

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Open salaries, clear professional grades

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In case if career grades are open too, it increases mutual understanding of the employee's future growth in the company.

/Kamila Shin

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Perceived injustice among peers with the same salary level

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Perceived injustice among peers with the same salary level

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Personal input can be perceived as more valuable as of a peer of the same grade and same salary which can lead to perceived injustice and internal conflict.
/Kamila Shin

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As described in the article : knowing your boss salary (or at least average level) would increase for some people the efficiency and workability - as a will to be promoted someday in the future
@ Ivan

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For the companies having several locations especially in different regions - can cause tension if some locations are paid less than the others (which is quite often the case). That would bring additional issues to management in addressing the reason to employees

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knowing my peers and managers salary could lead to a levelling process towards fair payment for many. If some earn less, they have arguments to ask for more. Those not justifying their pay with performance will have to step up or leave

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transparency help increase motivation, ensures that people feel they are valued, and not short changed. Equal pay for equal work increase cooperation among workers

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transparency help increase motivation, ensures that people feel they are valued, and not short changed. Equal pay for equal work increase cooperation among workers

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learning that others are paid more than others while they put more work can be very demotivating. Realizing one is not paid for the effort he puts in, can lead people to cut corners or be unethical to cheat the organization either financially or in terms of using company time and resources

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Greater transparency of all roles can encourage employees to pursue growth options by giving them a clear salary goal to pursue with another job on their career path within the organization
@Damodar

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Some employees may feel uncomfortable with this type of information being available to others. It could lead to problems and even resignations if not handled well.@Damodar

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With salary transparency the employee knows if he/she falls in the right salary bracket for their role & experience. It also helps them to know if they are paid as per the market standards. Also few people might be motivated to perform well if they know that they have a good potential for a certain salary increase & promotion
@Vignesh

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The main disadvantage is that people try to compare their salaries with their peers & if they are under paid then they feel demotivated to work & they might even look for other companies who pay them better. Also few might feel uncomfortable/inferior if they have a less salary for the same work done compared to their team members.
@Vignesh

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Salary transparency is fair, and encourage people to work hard for their goal. Easy to assess and archive it.
@Julie

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Salary transparency is too transparent to no imagination. There is no secret or rooms for people to touch the limit. Less inspiration, less motivation.
@Julie

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When knowing the manager's salary, it helps employees to foresee themselves in the future when they are in their shoes, this acts as motivation for them.
Moreover, when knowing the peer's salaries, and if the case that their peer's salaries is lower than his/her salary, it pushes him to put more efforts
-Waleed Al-Hammouri

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It is all a matter of perception. Some employees when knowing the salary of the manager of peer, he/she compares the their inputs and outcomes with his/her and might lead to demotivation

-Waleed Alhammouri

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Same job, same skill then no matter gender, age, ethnicity, background... we will see we are paid equally.
@Ayaka

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Though I wrote "equal pay" to advantage, there is no same person and it depends on what position, team balance, expectation, possibility on future development, retention... there are many strategic factors that the manager/employer wants to get reflected in the salary. Those strategic intention and should be hidden to avoid unnecessary conflicts.
@Ayaka