There is a grow­ing move­ment to­wards greater trans­parency in re­mu­ner­a­tion. The fin­week team ex­plores what the im­pact of re­veal­ing salaries can be on em­ployee morale and pro­duc­tiv­ity.

Finweek English Edition - - FRONT PAGE -


payslip left ac­ci­den­tally at the copier can spark a riot. Or, at the very least, sim­mer­ing re­sent­ments and at least one slammed of­fice door. Salaries are enor­mously sen­si­tive. Noth­ing is as de­mor­al­is­ing as find­ing you are paid less than your slacker co-worker, whose con­tri­bu­tion to the com­pany bot­tom line is, frankly, neg­li­gi­ble.

Now some US com­pa­nies (in­clud­ing the prom­i­nent re­tailer Whole Foods) are tak­ing the dras­tic step of dis­clos­ing all salaries to em­ploy­ees. They ar­gue that salary trans­parency can help to ad­dress in­equal­ity, in par­tic­u­lar the gen­der wage gap. They have a point. Un­fair prac­tices flour­ish when salaries are kept se­cret.

Take the re­cent im­pact of pay dis­clo­sures in Hol­ly­wood. There was a huge out­cry when leaked emails re­vealed Os­car win­ner Jen­nifer Lawrence had earned much less than her male coun­ter­parts

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