Comment by DavidAdams | Hacker News Reader

Comment by DavidAdams | Hacker News Reader

I find the taboo around discussing compensation to be a very interesting phenomenon. As a former CEO, I prefer to have the leeway to, for example, pay an individual who drives a hard bargain at hiring a little more without feeling the pressure to pay other people more. Then there's the flipside, which is that some people undervalue themselves, and who doesn't like getting a bargain. In this sense, secrecy around pay benefits employers.

As a member of a team, I also understand that pay differential is a potential source of tremendous discord. While everyone instinctively understands that some roles earn more than others, it's definitely better for that knowledge to be general rather than specific. I don't think that radical transparency about comp would promote good morale, in general. In this case, secrecy about pay is compatible with psychological well-being among employees.

However, I'll have to say that I agree with the regulators here. Its one thing for social decorum to dictate the secrecy. It's another for the company to have an official policy about it.

I think pay differential is only a potential source of discord if you are unable to articulate why one person is paid more than another. If somebody asks why Bob is paid more than somebody else with the same title and your answer is, "Bob negotiated harder" then you're likely to get some discord. If your answer is, "Bob provides more values because he has this knowledge, or these client relationships, or has demonstrated that he is reliably successful" discord is much less likely.

Maybe the solution for this problem is the same as my proposed solution for used car shopping. Eliminate the haggling. This is the salary for the position. No negotiation. If you do X,Y,Z you get so much bonus. If you get this review and meet these goals you get this raise. All numbers, no negotiation.

The best employees often aren't the best negotiators. In fact, outside of sales or management, I would say there is almost an inverse correlation. But it sure leaves a bad taste in a model employees mouth to find out Bob make more because he is a better haggler even though he does a worse job. Enough of a bad taste they may either do a much worse job or start looking for another place to work. But this is a problem with a simple solution.

I always remember when I was working in a restaurant aged 16 there was one chap who would always demand a "bonus" for coming in at short notice to cover someone's shift. The rest of us would typically have just said ye or nay depending on whether we were free and wanted the cash.

He was a crap awful waiter and no-one was best pleased to find out he was getting more money just for showing up. Wasn't enough for us to change our behaviour though... haggling for money is just so undignified

In this case, secrecy about pay is compatible with psychological well-being among employees.

I wonder if it could also be a source of stress and distraction. Whether I'm being paid a high enough salary is something that I think about, and applying for jobs is close to the only way of knowing for sure. This takes time and attention away from doing my regular job, and causes me to "steer" my work in the direction of acquiring more marketable skills.

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