10 Years Of Data On Baseball Teams Shows When Pay Transparency Backfires

Pay transparency has started to gain popularity along with the trend of overall more transparent information flow in organizations. Because our perceptions of pay are often wrong, why not simply inform workers of what everyone in the organization makes, in order to stave off speculation? Rather making pay information accessible without context or hiding it, organizations, the data shows, are be better off forming transparent performance metrics, matching pay to those metrics, and having open conversations with employees about where they stack up. That, more than anything, is what a truly transparent compensation program would look like.

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Written by Aaron D. Hill on HBR

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