Salary Transparency: How Would Revealing Pay Bands Impact Your Organization?

Hi all,

Please let me know your thoughts on whether salary bands should be transparent to employees and what the significant impact of this would be on the organization. Kindly share your viewpoints.

Hi,

By making salary bands transparent, we can develop a level of trust between the employees and the organization. However, caution should be taken to ensure that employees do not compare each other's salaries as it can lead to dissatisfaction due to normal human nature.

Regards,
Nidhi Ranpuriya

What a question!

Salary grades and bands are non-confidential matters. These are supposed to be open and transparent matters for all employees in an organization. Employees must know their current job grade/band and the consequent impact of their internal career movements, especially when they are transferred and/or their pay is adjusted.

However, transparency in the grades and bands does not mean revelation or making public the individual actual salary rates of employees. This is an entirely different issue.

In making grades and bands transparent, employees should only be told about the rate range of each band, especially the band where his/her position belongs. When an employee is told about the rate range of his/her job grade/band, he/she will know the maximum pay potential that he/she still has in the future.

Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
Manila, Philippines
KSA Mobile: 00966-54-223-7804