We’re having a debate about whether our office should move toward a fully transparent compensation model. After finding out that a few coworkers have much higher base pay than I do, I’m leaning toward total disclosure. Do you think open-salary environments help the team dynamic or just cause more drama?

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I would expect that to cause a lot of drama and resentment. If people want to discuss their own salaries, that's fine. Posting everyone's salary will be viewed as a privacy violation by some people. I consider what I make to be my own business, and I really don't care to have other people discussing my personal finances. I would think others would see it the same way.

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I wouldn’t be fully transparent, like listing out names with salary. But having a detailed anonymized listing would be great, not just a range, but like employee 1 makes x, employee 2 makes y, etc.

Interesting take

No, fully transparent will be a huge source of drama and doesn’t really help anyone. You know right now that coworkers make more, does that help you in the bigger picture? Look around and don’t be in the dark about what you should make, but that’s only going to go so far.

Honestly I’m leaning towards this

I can see posting the pay bandwidth for each job and job type published, and included to open jobs posted on job boards. I am not sure about letting everyone else know what everyone is making, unless everyone with the same job title and job responsibilities are paid pretty close to the same rate. If there is a bog pay difference between multiple people doing the same job, that could create some unintended drama and have unhappy people.

Having clear bands gives employees something clear to work towards. It is great for moral.

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