Pay Transparency, Not a Taboo?

Salary has long been seen as a forbidden topic in a lot of places, such as Hong Kong and the U.K. People rarely mention their income as it ties to the value of one’s skills and hard work. However, the story is completely different in Sweden. With just a phone call to the tax authorities, anyone can find out anyone’s salary. Companies might be fear to disclose all the pay as they are not going to be able to have the maturity and make the mental leap to see that there are reasons why a certain person is paid more than the other. In fact, research found out that revealing pay information can increase performance, especially among top performers.  The pay transparency can create a “shared fate” among employees, hence a high trust organization where people are all-for one and one-for-all.

Does your company disclose enough information to employees? Adjusting the pay transparency level, e.g. sales commission, might stimulate the working incentive of employees, which in return boost company’s performance.

Article Link(s):

  • Swedes can find out each other's salaries with just one phone call — but there's a catch
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