The Pay Transparency Effect

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Study: Those who were divulged the pay information in that ase actually did perform better than those who weren't. If you do build a system from the ground up, and people come into that system, and there are rewards for ring better, i think that can work. What i don't think works is if you're already in a system and you all of a sudden reallys all this information. That may hilat a mis alignment with that person who may not be the right person for your organization.

With the exception of a few companies like Buffer and GitLab, 99.99%+ of companies opt to keep their salaries closed. This closed nature creates information asymmetry and at times, inequity in the workplace.

Lack of transparency gives companies a hall pass to not develop a robust compensation system, but at the same time, sharing salaries openly isn't without its pitfalls, including privacy and the tendency for people to over-compare themselves to others.

In this episode, Steph and Cal debate whether companies should share their pay methodology or even fully open up their book. They share a range of studies, including results from Norway, a country that has shared their tax returns publicly since 1863.

If you've felt the information asymmetry in the workforce or are considering how you can get more out of your career, this episode is for you.

Love this episode? Give it a review at https://ratethispodcast.com/learn