Helping you keep pace in industries moving at the speed of light

Radical Pay Transparency

Recently the CEO of a start-up space firm said something to me I haven’t heard before…
“I can’t compete on comp, but what I can offer is radical transparency. Everyone can login and see exactly what other employees earn.”

What?!? Every employee has full access to all compensation information?
It’s rare for me to be truly surprised during my workday. But this one got me…wow.
And the bigger question is… does it work?

Pay transparency laws have now passed in 17 states.

Obviously, voluntarily providing access to compensation details for everyone employed can be seen as an act of enthusiastic support for pay transparency.

It forces salary compression and pay equity issues to be brought to light… so they can be fixed.
But does this approach buy you enough goodwill to retain employees when they’re offered more money by a competitor?

Or, is it really the culture of openness that retains employees…and this is a (somewhat groundbreaking) commitment to that value?

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