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Coach
The general thinking is that salary transparency is good for employees and job seekers, but bad for companies.
In general, 'those in power' hate transparency. It takes away their ability to behave badly (e.g. offer low ball salaries) and control the narrative (e.g. justify low raises). I once heard companies leaders say "the company didn't perform well enough for bonus payouts" right before they announce they are having a Leadership Offsite at a fancy resort in Hawaii.
Coach
I have a good friend who was a "VP of HR" at a major company. He has dozens of stories about how the executives would screw over the employees to make sure they got paid. For example, order mass layoffs because of 'company performance' while giving themselves bonuses.
The pay disparity between Leadership and the people doing the work is insane. CEOs like Musk and Bezos make more in a day than the annual salary of most of their employees.
Having more information about salaries, and what the going rate is, definitely helps a job seeker, or someone seeking a raise. If you were totally flying blind you wouldn't know if you were grossly underpaid. And if you were presented with an offer that's dramatically below the market rate, you could have some confidence in negotiating that upward.
Salary transparency has shifted the playing field in a good way. It arms candidates with context and narrows pay gaps. I’ve seen it help level expectations on both sides. Curious did you adjust how you approach comp conversations now that ranges are often public?
Yes, I def have. Previously I did feel like I was flying blind and that recruiters had much more power than candidates.
Every-time I looked externally I usually say my current salary is like my target minus $20k so they would make negotiation very easy and would feel that they were giving me barely any growth so they would feel they won while I would get around my target comp.
Comp ranges are public but internationally cryptic at times so you need to learn the actual comp from insiders usually
It’s worked 4-5x so far and for my friends also 😊 if they ever ask for proof I would just say no lol
Mentor
Even though it may have been legal for them to ask, it’s not illegal for you to tell them you’re not gonna share that kind of proprietary information. Very important to professionally and nicely stand your ground and not fall for those tactics.
I know…this was earlier on in my career and I’ve def learned those lessons. I grew up with immigrant parents who taught me to always just be grateful with what you’re offered. Unfort I never had anyone to help guide me thru these types of things in corporate America.
It should be illegal for an employer NOT to advertise pay/salary when advertising for employment. Why would I waste my time applying for something I don't know how much it pays? You obviously have a position and budget, you're putting an advert out, so put the pay!
That's ALL levels work from highly professional to retail and hospitality/food industry.
You'd definitely see the pay levels in hospitality and the food industry change - because no one would apply when actually seeing the hourly rate written in black and white in front of them.
Subject Expert
I question how accurate the data being shared truly has been.
Coach
Wow, high salary jump there. I agree salary transparency helps and also saves me time to do market research
Mentor
Oh that’s good. A 60k raise! I wish we had that.