Comments on: Your Take: Knowing Everyone Else’s Salary

By: ryan

ryan — Sun, 02 Aug 2009 09:14:46 +0000

i work at petsmart and have found out that even though i have worked there for almost 2 years the new hires who know NOTHING about the store or the job are making between 20-50$ a month more than me. needless to say this has resulted in theft, time clock fraud, and generally just a shitty half assed attitude around the work place. the store would be better off if they just gave me a raise.

By: The Arabic Student

The Arabic Student — Sun, 01 Mar 2009 03:27:28 +0000

It’s better if you don’t know what your colleagues make even though you might want to. I was satisfied with my salary until I found out that someone a work with doing the same job gets paid $500 more than me every month. I’m now dissatisfied and am working to raise my salary, not necessarily for the money, but so that I can be on equal terms with my “rival”. I guess it’s good in a way because it has gotten me to work harder, but I was happier before I knew what she made.

By: Gates VP

Gates VP — Fri, 12 Dec 2008 00:21:31 +0000

FTA: If people are paid what they are worth, there is no reason for people to feel uncomfortable about sharing salary information.

A comment with which I duly agree.

Nicol:There are so many different factors that go into deciding someone’s salary: experience, expertise in different facets of the position (perhaps one facet is “worth” more that another facet), education, attitude… you know, all the different categories on a review.

You’re just dodging the issue here, with a bunch of “touchy-feely”.

Salary all comes back to revenue the employee generates.

If you can’t clearly quantify these aspects to your employees, then you’re going to consistently get sub-par performance from your teams. Look if I can’t tell you why “Joe” makes more than I do, how am I supposed to know where to find my next raise? On the flip side, if you can’t communicate to me why “Joe” is making more then how am I going to make you more money?

Again, the employer wants the employee to generate more revenue so that they can take home more money. In exchange, the best employees want a cut of that additional revenue, typically in the form of a “raise” or “bonus”. If the employee doesn’t know how they can make more money, then the employer is losing potential revenue.

Sure you might anger some people if salary were transparent, but then you’d also provide a beacon for everyone to follow. If you could have 10 people just like the highest paid person in your office, would that really be a bad thing?

By: Nicol

Nicol — Tue, 09 Dec 2008 19:37:25 +0000

i don’t agree that transparency is a good idea. I am an employer and it causes serious problems when people know how much each employee makes. I am here to tell you that everyone thinks they are a better worker than their coworkers. Really, who is going to admit, “self, you know what, joe coworker is such a better employee than me. Really, he deserves to make more than me.” There are so many different factors that go into deciding someone’s salary: experience, expertise in different facets of the position (perhaps one facet is “worth” more that another facet), education, attitude… you know, all the different categories on a review. I understand the need for governments to be open with how they spend taxpayers money but in the private sector, it should be nobody’s business but your own.

By: Sam

Sam — Tue, 09 Dec 2008 02:46:14 +0000

Same as Bill above. I work for the State govt. and so our salaries are all public

By: bill

bill — Mon, 08 Dec 2008 00:42:05 +0000

I work for the federal government. We all know eachothers salaries. Even friends and family can look it up on the web.

http://php.app.com/fed_employees/search.php

It really doesn’t make much of a difference and the hypothetical issues other commenters have come up with just don’t happen.

Also most school teacher salaries are public information and can be found on the web.

By: Lots

Lots — Sat, 06 Dec 2008 22:15:21 +0000

The problem is salary transparency is that it encourage that corporate (or other) rat race…not only would you have to justify your salary to yourself and your boss, you would also be affected by how your peers view you…

For example, let’s say salaries were completely transparent in a corporation that bases salaries strictly off merit/value of the work you do, those who earned less than others would be looked down upon and possibly discriminated against…

Although salary transparency would be good in an ideal meritocratic world, it just wouldn’t work in society at the moment…

By: Polly Poorhouse

Polly Poorhouse — Sat, 06 Dec 2008 18:08:27 +0000

Salary transparency would go a long way toward eliminating the discrepancy between men’s salaries and womens.

As an employee and a consultant, I use every opportunity to find out what my colleagues, managers, and competitors are making, just as I try to find out in business what my competitors are charging for their products and services.

Economic rationalism works best in a world of perfect information.

Incidentally, I posted a tip on my blog not long ago about this: the highest paid employees, and sometimes external contractors are generally listed with their salaries on a US not-for-profit organization’s income tax returne (or 990 form).

That’s good information to have.

By: Andy @ Retire at 40

Andy @ Retire at 40 — Sat, 06 Dec 2008 08:01:20 +0000

I too think hidden salaries gives the employer the upper hand though I’m not sure I’d like it if it was open. Then again, it’d be nice to point the finger at people who are earning more than you who are much worse

By: Cap

Cap — Fri, 05 Dec 2008 20:38:53 +0000

Between good friends, not so much problem I would think. Between employees? Everyone’s already mentioned the various negatives.

Agree that some level of transparency is nice… the Internet has already made such numbers a little bit more accessible — but it’ll never be to the level where people discuss openly about their salary, I think.

There’s just too many factors tied to a salary an employee’s work performance: their experience, potentials, connections, special skill set… etc.

I would think that for it to reach the point where everyone can discuss it openly, they’d have to discuss why they’re getting (or giving) so and so openly too.

By: Amanda

Amanda — Fri, 05 Dec 2008 19:02:02 +0000

Unfortunately, emotions do come into play. I think many people would find it hard to not be judgemental when looking at the salaries of their coworkers. It definitely has the potential to breed resentment.

By: Beef Up Your Piggy

Beef Up Your Piggy — Fri, 05 Dec 2008 18:52:18 +0000

I think the employer has the upper hand when salaries are hidden. Only they know all the cards on the table. However, I am traditional in the fact that I don’t think what I make is anyone else’s business or concern.

By: urbantux

urbantux — Fri, 05 Dec 2008 18:33:58 +0000

I think the problem comes from the employer’s side, not the Employee. If I make more than Sally, who does just as good work as me, and she knows it she will ask to make a comparable amount. When no one knows what the other is making some people will be more content to just keep making what they are making and some people will request and receive raises. Those people who are “Content” make ti it easier for those of us who are willing to negotiate to get a raise. There is more money in the pool because those other guys just didn’t bother to ask. IMHO

By: Miss M

Miss M — Fri, 05 Dec 2008 17:45:42 +0000

In my job the salaries are often public knowledge. When we bid on public projects the bids (which include cost estimates with salaries) are part of the public record. At my current project there are spreadsheets with all the salaries by job title for doing cost estimates. Everyone has access to these spreadsheets, that’s how I know someone with less qualifications is making more than me!

There was a big stink recently when a local paper put together a database of city employees and their salaries, if you knew someone who worked at the city you simply input their name. City employees were furious, but I believe their salaries were public record and that is how the paper got the information.

By: Eric J. Nisall

Eric J. Nisall — Fri, 05 Dec 2008 17:09:55 +0000

I don’t think it is necessary for employees to know about each others’ business. It has the potential for creating some very contentious working environments. Nepotism is a fairly common example of such a situation where a family member or friend is given preference in terms of salary, benefits, and leeway over regular workers. Employees should only be concerned with their own production regardless of what another is making.

In Cathy’s example, her “ceiling” was higher than her colleague’s which was cause for the discrepancy in salary. This is common in business because employers are more interested in workers who possess the drive to improve themselves and advance in their field. Many employers see it as a way to encourage such achievements. In some instances certain employees are quite comfortable in their current roles and do not want to continue with their education or do not want responsibility that is greater than that which they already have.

In Dave’s example, misery is relative. Some people are going to be miserable in their career no matter what salary they are paid, it is a simple fact of life. What if the boss made $100,000 more but still worked twice as many hours and was still miserable? It may change the view on the company as well as the boss, but the fact remains that know his/her salary doesn’t always tell the whole story.