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I think it would be terrible to have all salary information public. As you allude in your post, the workplace would then become more communist than capitalist.
Rather than quell employees and allow them to “focus on work” I think it would make employees totally preoocupied with everyone else’s pay. Basically annual reviews would have to be public and/or done as a group, since with every pay raise the entire company would want to know “how come she got a 4% raise, and I only got 3%??” or whatever.
To avoid such drama, employers would have to start giving everyone the exact say pay and raises – which in turn would lead to lower productivity and competition (not to mention lower salaries). Plus it would lead to more income volatility and/or less job security since employers would have to either raise everyone’s pay or cut jobs if new hires were really expensive for a few years.
Everyone should be paid based on their value to the company and/or their performance. Yes that means in some markets new hires will be paid more because they are harder to get; yes sometimes the boss is paid less than his highly productive subordinate. This should all be allowed, and making it public would be a disaster.
It might work in China because the culture is more collaborative and collective-minded; but America is very rooted in the “every man for himself” principal.
I don’t know. I can see both sides. I know at the state all public salaries were open to everyone to see and it didn’t seem to bother anyone. Though most people who worked at the state weren’t that happy there anyway.
I think I’d be curious to know what others were getting paid but there are also so many variables in how people are paid. Perhaps a male in a similar role has different duties or more education so makes more. Maybe he’s been around longer. Maybe he just does a better job.
I try not to let the idea of others making more than me worry me too much. I’m happy with my salary for now and am happy in my position.
I had a terrible suspicion that I was underpaid in my last job. I also felt like my contributions weren’t valued. I don’t think those are mutually exclusive.
This is my favorite sentence:
“Since I am Chinese I do discuss salary information with my friends…”
Really? I thought you were American?
What does that mean, anyways? It’s like if I said “I’m one eighth German, one eighth Irish, one eighth Guamanian, one eighth English and one half southern redneck. A fourth of me is thinking about getting drunk, and another fourth is thinking about hitting on a married woman. Another fourth is being lazy. Oh, but I talk about wages with my friends some of the time, on the days that I don’t put my truck into 4WD.”
What was my point exactly? Oh yeah, I remember. Public salary information is bad news. It’s bad news because then companies feel like they need to pay everyone the same, which is inefficient. Of course, without open wage information, some people will get paid more or less depending on things as arbitrary as how good they are at negotiating their salary. But that’s the way it goes. After all, this is capitalism in America. If you want to work somewhere where everyone gets paid the same, work at your local DMV or post office. In government you know exactly what your pay will be far into the future. Just try not to blow your head off all over the government gray #42 colored wall.
Ian…I thought you knew I’m not American. I’m a Chinese citizen.
My current orgnization often remind me of China before 1980. Here everybody knows other people’s salaries and they are often upset or angery because they think some raises for others are not fair. Here raise is more based on “equity” than on performance. I do not think it is a good thing. When you were in China, you were only a child and you did not really know much about what the adults experienced. Every one in your age in China has a happy memory about his or her childhood, because you are the only child. The whole family supplied you with the best they could afford. When you were a child, all the children in China were treated as “little emperors”. Now your generation has grown up and begun to experience what real life is. For all of them, the childhood is their best memory.
@laoma: Um…what does my childhood have anything to do with public salary information? Your salary is public information because you work for the government. It is public money and as I said the government publishes the salaries for the sake of accountability. Obviously keeping salaries secret gives rise to secretly discriminatory situations, and there always be grumpy people in any work environment. However, in California people are free to leave their position so if they are unhappy they can leave. I have just stated the pros and cons of the situation. Your comment about my childhood is irrelevant.
@Meg:
My experience has been that people know which of their coworkers are the most productive, and don’t begrudge it when those people get paid more. They also know which employees are sliding along, doing just enough to avoid getting fired, and believe that those people should get paid less. So I don’t think you’d see a strong push to equalize everyone’s salary.
What you would see is a lot less of employers taking advantage of employees who don’t know what the fair market value of their labor is.
The only people who benefit from keeping salary information secret are the bosses.
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