Among the secrets I am aware of at the company I work for, I wonder why there is someone who make $6,000/year less than I do, and gets as much or more done than I do. He knows more about the company as a whole than I do, and is able to fill more hats well than I can. So why isn’t he making as much as I am?

Then again, there is another who used to be worth twice what he was paid (even if he slept half the time he was at work), but hasn’t been able to track the changes to his job when we changed the computer software that ran the company. Now he is struggling to hang on.

The first of these two would do better in an open, honest environment (or I would do worse — but at least I would know we were being treated evenly) To deal with the existence of the other — and every company has one or two like him, you have to be just as open and honest about just exactly what each employee is contributing. Both parts are important. Only revealing one or the other is only revealing half the equation. If that is the case, it is true that other employees will get jealous. But if both sides of the coin are put on the table, then it should answer more questions and complaints than it creates.

However, there is one type of company that should never, under any circumstances reveal either an employees contribution to the company, or his salary. That is a company which is founded on dishonesty, and trying to hide things that they are doing.

Just think if you had to negotiate everytime you went to the petrol station. Just because you drive a Rolls Royce you must pay more for petrol.

Just think everytime you went tothe supermarket having to negotiate for the contents of the shopping trolley.

Jobs sold on eBay that’s what’s coming.

My firm [a large American one] is totally dishonest about salaries and rewards. It’s nothing but corrupt. Someone high up is pocketing your salary, the one you should be earning.

In the end these firms will collapse under their own weight of crud. Corruption is so Byzantine.

Pay me the going rate. Advertise the salary up front.

I believe open salary is a necessity if you want a company where people can find honesty, objectivity and productivity. If you try to hide salary info, the only thing you’ll get is a dishonest corporate culture where everyone will gossip.

However, it is really hard to accept some fact that hurts. That is, if you make less than a coworker you’d feel that you’ve been treated unfairly. Even if you’re a super mature and logical person, you’ll not understand the situation in an objective perspective.

The only thing company executives can do (and should do) is to hire new graduates who does not have experience in traditional work environment. By this way you can impose a culture of openness and fairness from the beginning.

You cannot explain the 100 $ difference in salary between two co-workers doing exactly same work if they are experienced people. You cannot expect them to understand your explanations of “dan is getting more than you, because he performs better” etc. They’ll simply be heart broken even if you’re telling the truth.

I believe that’s why old companies continue this “salaries are secret” policy, simply because they don’t have a culture which can accept this kind of honesty. Since its really hard to reshape a well structured culture, its almost impossible to change this policy effectively.

In summary, you can only try this type of open-salary style if you are a startup (or sth. like that) or you’re hiring fresh graduates.

The above concept is one of the hardest for anyone to understand. Open Salaries are a bad idea for that reason. With open salaries, you end up treating someone better than what is deserved.