The poll we’ve been running here for the last few weeks has been asking “Would you be in favor of an “open salary” policy at your company in which everyone’s salary was published for all to see?â€
As you can see from the responses (nearly 200 of them) 60% of respondents said fuhggedaboudit (AKA no). Originally based on this post from the Chief Happiness Officer, the poll was an attempt to see if people agreed with Alex who argues that there are a number of very compelling reasons to do away with the secret salary system.
While I, too, balk at the idea of publishing my salary, in many ways doing so would represent the natural evolution of something we already do at SuccessFactors: make our goals public. The idea behind pay for performance is that those who perform best get paid the most – thereby incentivizing increased performance. But if people don’t know what others are getting paid, there is a disconnect. I know what Joe did or did not accomplish from his public goal plan, but I don’t know if he got paid more or less (and how much more or less) as a result. There is a perception of pay for performance, but no proof-laden pudding to support it.
I guess my question then becomes – can you realize the ultimate promise of pay for performance without open salaries?
When you work for a state university, your salaries are published on the university website. So are merit raises.
I love the idea of making salaries public–in part because of the discomfort it engenders in me. If our goals are more transparent organization, this does seem like the natural evolution. It’s just scary, given people’s predilection for “privacy.”