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Salary information is probably the most confidential topic that companies try to not share with employees. I’m a firm believer in transparency because it helps me know what I’m working hard to achieve. I saw a news report about a company that published salary information on the intranet. Employees of that company know how much each individual is compensated, letting them know what rewards are awaiting their hard work. Conversely, they know how much someone who is not pulling his/her weight is getting away with.
Overall, I think that knowing salary information can do more good than harm. I have found that Glassdoor.com does an excellent job of sharing real employee salaries while keeping the employees anonymous. To me, it achieves the goal of knowing this valuable information without invading privacy.
What can I do with Salary Information?
Even in these economic times where some people are happy to be employed, its good to know where you stand amongst your peers. I for instance work at a company that has over 100,000 employees globally. With the help of Glassdoor, I can see whether my salary falls in line with different groups of people:
The list can go on and on with different combinations. But what I also find especially useful, is the information for the next promotion level. I have found myself adjusting the mental dollar figure I assumed for those at the level above me. People may speculate in the office about salary ranges, but the numbers speak for themselves.
The Key
The key to success at Glassdoor is that users must share information in order to access information. The site requires sharing salary information from an employer in the last 3 years. Every 12 months, users have to provide updated information. This requirement enables the salary information provided for various employers to be up to date at all times.
In addition, the site allows users to write anonymous reviews of companies including an approval rating for the CEO. The reviews are a great way to see how others feels about their companies, especially for anyone interested in making a move.
I feel that knowing salary information can only be beneficial. I am interested in anyone’s opinion that differs.
Employees may see more good than bad in knowing salaries of their peers, but employers try to keep this as secret as possible. At least at the companies where I have worked. They seem afraid that people will get discouraged when they know what others are making.
Or according to my former HRM: they can get discouraged.
I believe keeping these stats public is a good way to keep your employees motivated. But at my new job salary information is kept guarded and locked up by the employers and employees. A salary is something personal, only you and your employer know it(or so some people like to think)
But this is off course all about preference. I could care less if people knew how little I was making. Everybody at home knows.
But I also know people who are very protective of salary information. They don't want anyone to know how much they make and when they received bonuses.
It differs from person to person. What is your view on salary transparency?
It's interesting.
I grew up abroad and asking someone what they made was quite common and no one thought twice before saying "Oh you are a widget maker? What does that fetch you?"
When I returned to the US and was put in an ESL classroom, for 'acculturation purposes', I asked my ESL teacher what she was making and she was taken aback. She let me know that there was some sort of social taboo to ask that in the US and I should not do it.
It's interesting to see how things are changing.
Personally I like to see what the hard workers are making, and what the politically connected are making. Abroad it was no secret that well connected people got paid better. I thought that by returning to the US I would be facing a meritocracy...No so (in most cases)...i guess we are all human after all LOL

My salary information is MY business, my employer's, the IRS's and my accountant's. Since you don't fall into any one of these catagories, it's NONE of your business what I earn. Your right to know stops dead at my right (at least in America) to keep aspects of my life private.
@Dawn, I agree with you that making this information public would create more healthy competition in an office. In the past, I have felt hesistant to share my bonus amount with co-workers in the case that they did not receive the same amount as me. But I feel with transparency I would be more motivated to improve my performance to be at the top of the office.
@Dr. Pepper - I did not realize that salary information was so openly shared abroad. I was under the impression that it was guarded similar to the US. Although, I can see why a teacher would not want to share with her students her salary because it may affect the respect they give her. But I can also see her wanting to know what the teachers who had been at that school for 10 years longer than her are compensated, giving her something to look forward to.
@jrandom42 - I understand your right to keep personal information private. My belief is not to share all salary information across all industries publicly. I may not understand your job function and your credentials to achieve that position, so knowing your salary is of no benefit to me. Instead, I hope that you would be eager to know what your boss is compensated, so you can judge whether you want to be in his/her seat one day or if you should make a move to something else before its too late. I would hate to have you reach a milestone you have been striving for, just to find out it wasn't what you expected.

The only way I take my boss's job, is if I buy a majority of the company stock. I like my job just fine, and there are aspects of my boss's job I'm happy to be without. As Clint Eastwood said in Magnum Force, "A man's got to know his limitations."
@jrandom42 - There is no solution that fits all. It looks like you are a company where public salary knowledge may not have much of an impact. It's great that you like your job and understand that you'll never be the boss. I wish you the best of luck and maybe one day you'll have a job you LOVE whether or not you are the boss.
I do not think companies should necessarily share what others make, but I am happy that there is a proposed bill right now in Congress to keep companies from actually punishing those who willingly share salaries.
I think it would be more beneficial if more sites like salary.com help employees to independently benchmark their salaries. I don't really want to know what the person working next to me makes, but I would like to know what people in my position generally make.
By the way, I should've left this earlier, but here's a link to that info about the Paycheck Fairness Act, which the House recently passed (way at the bottom; another pay discrimination bill is getting more press): http://www.bloomberg.com/apps/news?pid=20601103&sid=aph8p9DAbC5A&refer=us
It was also fun to see Penelope Trunk talking about pay at BrazenCareerist on 20/20 Friday, but like I said, while I admire the "brazen"-ness of it all, I wasn't so sure about the the move...

The problem with sharing salary information is that people aren't paid fairly. And you wouldn't necessarily want them to be. Should someone doing the same work as you with the same performance level but with a bachelor's degree in an unrelated field make more than you? How about someone with a lot more experience than you but who performs lower than you? Who should get paid more, the guy who is 20 y/o and doing a good job right now or the guy with 15 years experience, formal training, who might not be overachieving this year?
There's a lot that goes into pay, and none of that even touches on your "attitude" or whether your boss likes you or not, or how much pull your manager has when it comes to salaries.
@Ellie: I agree entirely. Salary.com and other sites are very useful for me to know how I'm doing in my field and in my area but if I'm happy with what I make and then find out the slacker next to me is getting paid a lot more because a family member hired him in, that's only going to make me angry when really it shouldn't be any of my concern and there's nothing I can do about it. Sometimes ignorance is bliss.
@Miles: I think you point out an interesting fact: pay isn't fair (but in my opinion it should).
Two personal anecdotes.
I worked at a place where I was paid $20k less than a coworker who actually did less than I did, this coworker' skill set was smaller than mine, but because this person was there for 15 years they got more. Is this fair? I don't know. What would mitigate the circumstances would be if I got merit pay for going above and beyond the call of duty and helping out both in my area and this other person area, but I didn't.
Later on I worked at a place where my boss was hired after me. My Boss had *less* education and *less* experience but had a specific MA degree that was coveted in that industry. In truth I learned everything my boss learned in her degree (and then some) with on-the-job training, plus my other MA degree. This person was hired, made my boss and made $15k more than I did simply because this person had a degree in this field. Is this fair? Probably not, but it's the way it is.
Personally I would still prefer to know what people are making so I can plot my course. If the environment seems non-collegial but I can make lots of money by sticking through it, I may. If I know that I am close to the salary ceiling with what I am making, I may choose to change company or industry.
I know what people are making in my company since they make it public. I did get angry when I saw what people made because some of them have less education or less experience (or both), or simply aren't competent. Lately I've adopted a more calm attitude to these people though. It's not about them, it's about me.

@Ellie - I read the article on that link and its ... interesting. I agree with the part about not penalizing an employee for sharing salary information if they so choose.
I don't neccisarily agree with the other parts of the bill that allow salary discrimination suits to be brought against long past offenses.
@Danielle
I agree -- there are a lot of things going on right now with pay discrimination that could be a really heavy burden on the employer. (I'm following all of this stuff because I write for a publication employers and benefits professionals read.) But on the other hand, there are also good things happening to stop things like gender wage discrimination (such as the not penalizing an employee for sharing salary info). I guess we'll see what happens!

I found another site salarylist http://www.salarylist.com it seems provide some base salary information from some official data. I think it protects privacy while providing more granular details. Glassdoor is very nice, and has some detailed analysis, it is fun to compare both though
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