How to . . . Keep employees informed about salary levels

YOU may want to know what your colleagues earn, but would you like them to know what your salary slip looks like each month? Most companies keep salary information secret — for good reason.

Ellen Edwards, head of human resources and marketing at asset finance company Fintech, said this information could affect the chemistry between colleagues. “A co-worker that was once a confidant may turn into a competitor once salaries are discussed.”

Other problems resulting from too much transparency include:

A collapse in morale. In addition to feeling jealous, contemptuous and betrayed, employees may begin to judge their own worth. And they may decide to work according to their pay grade, “leading to late projects, poor productivity and a disregard for managerial authority”, she said; and A flood of requests for raises. However, choosing to make salaries known to all can also be positive. Benefits may include:

The creation of trust, which is the foundation of teamwork;

An increase in productivity, according to studies; and

Employees getting equal pay for equal work. “This is a huge benefit with regards to the amendments to the Labour Relations Act, which will come into law any day now.”

Edwards said that no matter which approach companies followed, employees ought to know the maximum and minimum salary limit for their position. In this way, they will know if they reach their limit and whether they should be promoted, look for a new job or accept the standard annual increase. — Margaret Harris