The effects of pay transparency on motivation and performance

One of the primary reasons we work is to earn money, but many of us feel uncomfortable telling others how much we make. This fear may be working against women, because research has shown that salary transparency can help narrow the gender pay gap.

With the help of experts, we explore the complexities of talking about our salaries. First, an economist walks through the pros and cons of disclosing your pay. Then, the host of a personal finance podcast explains why she encourages people to speak openly about salaries. Finally, an HR executive gives advice on how to deal with the gut punch of learning that a peer makes more than you do.

Our HBR reading list:

• “The Motivating (and Demotivating) Effects of Learning Others’ Salaries,” by Zoë B. Cullen and Ricardo Perez-Truglia
• “Research: Gender Pay Gaps Shrink When Companies Are Required to Disclose Them,” by Morten Bennedsen et al.
• “Your Coworkers Should Know Your Salary,” HBR IdeaCast interview with David Burkus
• “Why Companies’ Attempts to Close the Gender Pay Gap Often Fail,” by David Anderson et al.
• “Closing the Gender Wealth Gap,” by Nicole Torres

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Email us: womenatwork@hbr.org

Our theme music is Matt Hill’s “City In Motion,” provided by Audio Network.