Reasons Companies Should Have Wage Transparency

However, it is not illegal. Employers cannot require workers to refrain from talking pay rates but a few would like to because there is such a massive gap between pay rates, even among workers on the same degree or with the identical job name. Most workers find out what their colleagues are making through the water cooler talkaround the workplace.But, an increasing number of companies are creating transparency concerning the company when it comes to worker salary. Companies like Whole Foods and Buffer are leading this fad by going up to posting worker wages and the formulation they used to compute individual salaries online for all to see.Here are six reasons why a corporation should have wage transparency and why companies like Whole Foods and Buffer already do:

Minimum Wage

  1. Social networking – together with the growth in social networking, people are becoming more comfortable with sharing personal information online.
  2. Some Sites already offer this information – many websites already share pay data such as Glassdoor Salary andPascale.
  3. Recruiting and hiring- using a normal pay for certain positions and expertise, it takes the guess work out of the salary component of the recruitment and hiring process. This enables recruiters to work with applicants better and faster.
  4. Reduce differences in pay for people – we still have a discrepancy between pay for women and men at all levels of organization. This gap will decrease if not disappear by producing this transparency.
  5. Trust – the more transparent the company is, the More the business will be trusted by the workers. As they will have the ability to see that they are being paid what they are worth, this creates a sense of equity among workers. Trust is loyalty.
  6. Motivating employees – allowing workers to see that the methodology behind salaries at various levels of the company can help motivate employees to improve their education, expertise and degree of involvement with the company to improve their pay.

There will still be wage disputes, queries from workers on why someone else is earning more. But in the end of the day when the pedir aumento de salario formulas are public too then that may be explained to the employer and the employee can maintain a degree of fairness and ethical business practices.Now, there are various levels of transparency. A business can opt to share all employee salary internally or externally. Or a business can decide how the wages are determined and to just share commission ranges for positions. Or a business can decide to share job salary such as marriage wage jobs but not job salary. Each company should pick the sort of transparency that best suits their business and culture.