Should companies offer salary transparency?
By making salaries transparent you’ll end up signalling who gets paid for what skills, and how you can reach similar levels if you manage to put in hours/ up-skill yourself? This should reduce the number of employees who’ll be unhappy if they find someone else’s salary later on to be really high. Also, we will get rid of draconian law, which kind of stops employees from talking about salaries. Does any company in India have salary transparency as one of the their core agenda to attract talented folks?
Salary transparency vastly benefits employees and puts the organization at a disadvantage. That’s why they don’t want it to happen! NYC and California came up with laws to make salaries transparent across job boards and offers.
Assume one of your colleagues at your level is a super star. He/she earns 5 LPA more than you at the same level. You know they earn more but not exactly how. But if you discuss now you know the exact number. That hurts more and you will demand more from the org. Overall hurting the employer. So they let the status quo stay.
incognito
Stealth
2 years ago
Problem with transparent salaries is competition between peers, ego and lack of maturity.
Non zero % people think they are better than their peers regardless of what the business thinks.
Have seen it rampant in college kids who share CTC. Always ends in drama.
BiryaniEnthu
Stealth
2 years ago
It won't work in India, they lose bargaining power in getting many people for less. Large conglomerates are built like that
