Ducks in a Row: Private vs. Public
by Miki SaxonAsk people what they do in private and you’ll probably hear far more detail than you want, but ask what they earn and they’ll either freak out at the question or be very insulted.
What they probably won’t do is tell you.
Sex used to be personal, but these days it is often broadcast to anyone who will listen, but not finances—although older workers are less likely to discuss either of them.
Companies are even more paranoid about keeping salaries confidential—sharing compensation information is a firing offense in many of them.
Usually, the more a company insists that the numbers are private the more likely people are to assume that something is rotten—or unfair.
After all, gossip tends to exaggerate things. Professor Lawler says studies show that when pay is confidential, workers often believe the salary distributions are more unfair than they really are.
That’s why Dane Atkinson, chief executive of SumAll, a data analytics company, does things differently.
When he helped found the company about three years ago, a decision was made to disclose all salaries and equity shares. (…) “In this way, more money goes not to those who negotiate better, but those who work the hardest,” he said. The people who resist making salaries more transparent, he said, “are usually those who think they’re making too much.”
The other people who resist are the bosses who are playing games with compensation.
You know, the ones who make the lowest offers possible and/or play favorites.
Compensation, whether salary or stock, should make sense to everyone; it should be plausible and accurately reflect the person’s contribution to the company’s success—not their charm, personality, looks or threats to leave.
Flickr image credit: Derek Keats