One of the blogs that I read is by Penelope Trunk called the Brazen Careerist. She’s got some very interesting topics and subjects that she covers. In July of ‘08, she wrote a post called:

Figure out how much you should be paid (and three cheers for transparent salaries)

I thought it was quite interesting, specifically the transparent salaries aspect. Every company that I’ve worked for has had strict rules related to discussing salary. Person A wasn’t allowed to speak with Person B about their salary. Even ranges tend to be hidden. I’ve never really understood the logic within it.

According to Penelope, companies should simply have their salaries publicized. Everyone should know everyone’s salary. I guess I don’t see a problem with this and can see certain advantages. She brings an example of her own personal business and some of the employee’s thoughts on the concept into her blog.

For example, the person who was underpaid was not so much jubilant about a potential raise, but upset about his current underpayment. The person who’s losing the housing allowance mostly for tax purposes does not seem to mind. The person who is making way more than everyone else minds a lot that I’m planning on revealing everyone’s salaries. But honestly, I think that person will work much harder if everyone knows the truth. And it should be that way.

People who are paid more should be expected to bring more to the table — not necessarily work harder, but better, more effective, and more efficient. The concept of transparent salaries is something that, to me, is just an extension of the “pay for performance” philosophy that a lot of companies are moving towards.

It makes sense to me.