Transparent Companies Aim to Take Mystery out of Compensation

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Would you want your colleagues to know how much more — or less — you're earning than them?

Transparent companies, also referred to as open companies, employ a business model that allows each employee to be completely aware of their colleague's salary. This tactic, utilized by businesses such as SumAll and Buffer, aims to create a sense of loyalty. The model also lessens the risk of compensation inequality, Dan Atkinson, CEO of SumAll, told CBC Radio.

 

Companies utilizing transparent salaries also cite trust, agility and feedback regarding productivity and performance as positives surrounding such a model.

 

But implementing the idea isn't easy. Transparent offices could also lead to unrest and jealousy, particularly if those in leadership positions are earning a compensation far greater than their employees.

The model must align with the company culture in order to work, warns PayScale. Companies also must be prepared for less-than-comfortable conversations with employees who are earning less than their counterparts.


Would you want a transparent salary model at your workplace? Why or why not?

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