In what many will think is counterintuitive, a new survey by global outplacement firm Challenger, Gray & Christmas, Inc., found that that more than half of human resources executives would welcome policies shedding light on salaries. Specifically, in the survey 55 percent of HR Executives said that companies should practice some form of salary transparency while 39 percent were opposed to it. The survey was conducted by Challenger at the end of 2014 among approximately 100 human resources professionals.
The salary transparency movement will obviously not work for every company. According to Challenger, the decision of whether to institute a policy of salary transparency, the level of transparency, and the success of that policy, is likely to be determined by the culture of the company.
“Organizations need to take a long and honest look at the culture they have created. If you have a company where there is a long history of distrust, animosity, perceptions of favoritism, etc., simply opening up the books on salaries is not going undo all of that. In fact, it will probably just make matters worse. However, if you have a highly collaborative workforce, engaged workers, open-door policies, and a bottom-up management style, then salary transparency is simply a natural extension of the culture already in place,” said Challenger.
So stay tuned to this emerging hot topic of compensation practices. As more companies experiment with and implement such policies over the next few years, it will help establish some best practices. For more information, go to http://www.challengergray.com/press/press-releases/salary-transparency-55-percent-hr-execs-want-make-salary-data-available.
How transparent is your company with respect to salaries? Please share your comments below.