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I Know How Much You Make, I Read It Online

Should Companies Post Salaries On The Web?

POSTED: Tuesday, August 26, 2008
UPDATED: 9:02 am EDT August 26, 2008

Imagine having a co-worker who works the same hours as you, does the exact same job and has essentially the same amount of experience.

Now, imagine that while surfing the Web, you discovered that this person makes 20 percent more than you do.

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Stings a little, doesn’t it? Scenarios like this are probably playing out all over the corporate world but are rarely discovered because of the American tradition of being tight-lipped over salary amounts.

But change may be afoot. Business blogger Penelope Trunk floated the idea recently on her blog, Brazen Careerist. The blog post became so popular; it became the topic of an article a few days later in the New York Times.

“CEOs tell people all the time that they value integrity; a good way to walk the walk is have integrity on salaries,” said Trunk, who is CEO of Brazen Careers.

Fairness Or Potential Disaster?

Trunk argues that the main reason for companies to be up front about salaries is simple fairness, noting that it’s a rather common practice in small companies, including hers.

She said being honest and open about what everyone in the company makes would increase the perceived honesty of a company in front of its employees.

The current system works against employees who are not good negotiators and often results in their being paid less than they are worth, Trunk believes.

But the process of going public with the payroll is filled with potential pitfalls.

“A major concern from a management perspective is that an employee goes from being unhappy to becoming a true villain,” said Dan Moshavi, management professor and interim dean of the College of Business at Montana State University.

Moshavi points out that humans are by nature assessing what they have against others and when you bring in the touchy issue of salary, things could get ugly.

“In a worst-case scenario, an employee may actually try and sabotage others by spreading rumors, not sharing important work-related information, and engage in other problem behaviors,” he said.

It Started Online, And Will Stay There

Even if American companies choose not to go public with their employees’ salaries, it may be done for them. Over the last few years, several Web sites have popped up that publish salary information.

The first site to do so was Salary.com, which breaks down career fields by experience and geography and provides salary estimates to users.

More recently, Payscale.com has begun posting copious amounts of salary data online, allowing people to get a much more scientific estimate of what they are worth. Trunk is a big fan.

“Payscale takes it to the next level; it’s very scientific,” she said.

But, given the publishing power of the Internet, what’s stopping someone who has access to salary information from posting it anonymously online?

Nothing. In fact, the site Glassdoor.com openly solicits anonymous salary postings and allows people to see what others make in exchange for some numbers from them.

According to the site description: “By working together to offer an inside look at companies, we can open access and bring greater transparency to information in one of the most important parts of our lives — our work.”

The site claims to already have salary information from over 10,000 companies.

So if the discovery of a salary figure online causes some discomfort in your professional life, Moshavi advises that you keep your cool.

“The best way for employees to handle a perceived inequity in salary is to gather market data on what similar positions make in other organizations and make a thoughtful and rational, performance-based argument on why they should be closer to, or even exceed, the salary of their peers,” he said.
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