Should we discuss salary and compensation with our peers and colleagues?

Hi Deb:

I recently saw a vlog in which the creator encouraged everyone, especially women, to be transparent about how much they are paid. She said that this helps everyone understand what different jobs and industries pay and that if it were to become a regular conversation, it could do a lot for closing the wage gap. Honestly, this makes me uncomfortable. I always thought that your salary should be something you should keep to yourself and only share with a select few. And I thought that companies had strict policies prohibiting such discussions among coworkers. Isn’t it illegal to discuss compensation with coworkers? Anyway, I wanted to get your thoughts on this.

Thanks,

Lucia

Dear Lucia:

This is a very interesting topic and one which has been garnering more attention recently. The vlog you saw is very timely and raises a good question: Why is salary information considered a taboo topic of discussion? This is a cultural and social construct, and those from Western cultures have been conditioned to believe that it’s somehow crass or impolite to talk about what we are paid. But without such transparency, how do you know if you’re being paid fairly or the difference between jobs and industries?

My short answer to the question is yes; we should start bringing salary transparency to the forefront of the narrative. More specifically, transparency is the most beneficial to those from the most marginalized backgrounds. So, companies that genuinely care about diversity, equity, and inclusion (DEI) initiatives should not want salary to be confidential. Transparency around wages can go a long way to providing fair and equitable opportunities for all. 

Most employers do not want this level of disclosure. They will claim that such discussions can create tension and foster resentment among coworkers. And they can, especially when people learn what they are being paid compared to others doing similar jobs. But that’s a management problem, not a line employee problem. And yes, many companies out there have policies that state you cannot discuss this with your colleagues, but such policies are likely unenforceable. As an aside, anyone who tries to convince you that passion should be more important than pay is talking nonsense. You can be passionate about your work while still being appropriately compensated for it. 

Another component of salary transparency involves the disclosure of salary ranges during the recruitment process. Fortunately, several states and cities have made it illegal for a hiring company to ask about a candidate’s current or previous compensation. Over the long term, this will help to close the pay gap. But in the interim, we would all be much better off if the salary range for a given role was shared with the candidate in the initial meeting. Even in this tight labor market, many hiring companies still dance around it and try to make the candidate name a price first. 

A move toward normalizing open and honest conversations about what we are paid will ultimately benefit everyone involved. At Buffer, a social media company, executives have found that total pay transparency has resulted in heightened productivity and has engendered trust among employees and management. Employees can also feel more empowered and assured of their value in the market. This is a win/win.

All my best,

Deb