U.S. Gender Wage Gap - Pay Transparency and Controversy

     Could disclosing our salaries within the workplace help end the wage gap? There has been controversy surrounding the idea of pay transparency, in which, we disclose our incomes to one another. Those in favor of pay transparency argue that salary disclosure can lead to employees who are more loyal to their employer and satisfied with their work environment (Russel, 2020). The opposition argues that pay transparency could make employees feel underpaid and decrease morale (Zenger, 2016). Some see pay transparency as a key to target the gender wage gap and adjust for wage discrimination (Russel, 2020). Others argue that pay transparency and highlighting income differences may harm the public image of some organizations (Zenger, 2016). With strong opinions on both sides, it can be important to look at the facts of the issue to see if pay transparency could be beneficial to ending the pay gap. A social media site known as Buffer practiced full pay transparency and even posted position income online (Russell, 2020). As a result, Buffer showed a 94% employee retention rate and their public image did not seem negatively impacted. (Russell,2020). Furthermore, pay transparency does seem to assist closing the wage gap. In positions where pay is required to be disclosed women make eighty-one percent of what men do (Russell, 2020). However, women only make seventy-nine percent of what male coworkers do in positions where pay is not openly disclosed (Russell, 2020). Despite arguments that pay transparency could prove detrimental to companies, evidence shows that transparency can actually decrease the gender wage gap and keep employees at a specific company. 

(Employers Council, 2018) 

    

    The increase in employee retention that Buffer experienced after implementing pay transparency could be directly connected to the way it makes employees feel (Russell, 2020). One of the things that employees value is when they feel heard by their employer and feel good about the work environment (Schwartz, 2014). In a survey of 20,000 employees it was found that, "...the better [their] needs were met, the more healthy, happy, engaged, productive and loyal they become" (Schwartz, 2014). By implementing pay transparency, companies are able to make employees feel valued and more emotionally connected to the workplace (Russell, 2020). 

    Opinions regarding pay transparency can be extremely divisive. When employees disagree on how to target this issue, there can be division in the workplace. Businesses need to provide a healthy work environment in which employees work together and set aside differences. This is why it can be extremely important for employers to invest time in getting employees on the same page about pay transparency. Presenting employees with facts about pay transparency and showcasing how previous implementations have gone are great ways for companies to address any concerns. "After implementing pay transparency, Buffer received twice as many job applications as it had previously [showcasing that] …transparency leads to more diversity in organizations" (Russell, 2020). In other words, pay transparency can help promote work environments in which employees from different cultures and backgrounds come together to meet professional goals while also elevating companies to their highest potential. 

    When considering pay transparency, it can be crucial to hear the concerns on both sides. Some may feel that pay is very personal (Employers Council, 2018). Others may feel that disclosing wages is a great tool for movement toward income equality (Russell, 2020). With the facts at hand, it becomes clear that there have been benefits for companies that introduce pay transparency. However, as advocates, we should be accepting of others concerns and willing to discuss this issue with anyone who has a contrasting view. Activists can further our movement this week by 1. Sharing this post on social media and being receptive to comments that agree or disagree. 2. Commenting on our blog and using this as a forum to discuss pay transparency along with any arguments for or against its introduction and 3. Signing our petition asking for congressional leaders to pay attention to any bills that promote the use of pay transparency by U.S. companies. It is our hope that by reaching out to others and having an open discussion we can address some of the concerns surrounding pay transparency and take another large step toward ending income inequality.  

  

                                                                         References 

Russell , K. (2020, March 5). How Pay Transparency Benefits Businesses. WorldatWork. https://www.worldatwork.org/workspan/articles/how-pay-transparency-benefits-businesses#:~:text=Transparency%20Increases%20Productivity,the%20Academy%20of%20Management%20Journal.

Schwartz , T. (2014). The Human Era at Work. ULI. http://uli.org/wp-content/uploads/ULI-Documents/The-Human-Era-at-Work.pdf.

Zenger , T. (2016, September 30). The Case Against Pay Transparency. Harvard Business Review. https://hbr.org/2016/09/the-case-against-pay-transparency.

                                                                      Media Source 

                                                                             

Employers Council. (2018). The Positive Impact Pay Transparency has on your Workplace . youtube. https://youtu.be/J1rcKY-_yyE