#AskPS
Ansha Dixit .

Why do Companies discourage talks about salary amongst employees?

Why do companies not want employees to compare their salary to their peers?

Ideally, people should get paid for what and how much they work or the value they add to the company.
(Considering industry standards and type of job/role).

What would happen if everyone in an organisation knew how much their colleagues are earning?🧐

Asking because I am not sure if there is any actual benefit for the employees in this or just helps the companies!

Open for all perspectives.

Originally Posted Here
28 Comments

Krishna Arora

Lad padenge.
Bolenge ye gadha itne kamata hei?
Kya organization hei value hi ni hei apni.
And they ll ask for a raise.
Increased jealousy and competition.

Ansha Dixit

Ok so there is one more perspective- In many organisations women get paid far less than men for the same position.

Is that fair?

How are they supposed to know?

Sabki salary fix krdo na.. jaise govt mei hoti hai?

Jaisi position waise salary

Krishna Arora

Good point.
Nope not fair.
Fix karna ek tareeka hei salary range fix kardo but full transparency se bohot issues honge also what are the reasons for a lesser pay?

Dimple Khubchandani

Comparisons hone lagenge ..superiority inferiority feel karenge ...
Lad padenge ..
Corporate politics will take place ...

Ppl will start respecting u only if u eaRn more

Ansha Dixit

and jo inequality in salary, favouritism etc hota hai wo?

How does that benefit employees?

Its like jo mil raha hai lelo chup chap. No questions asked?

Dimple Khubchandani

koi b chup chap nahi leta... Protocol hota hai...
They know how much they are accepting ..
Koi unko force nahi karta ...wo khudse choose karte hai...

Inequality nahi hai ...suppose your job is to do data entry ...usko 5lakhs per month doge kya??? Ya sales wala jo aapko 50lakh ka business de raha hai per quarter usko doge 5lakh per month ...can you justify data entry wale ko 5lakh q de ?

Aap justify karke batao ki same q milni chaiye salary sabhko ya fir sabhko kyu pata hona chaiye kisko kitna mil raha hai ????

Shreya Ranpariya

Most of the time the company doesn't have a problem as long as employees are much aware of the skills and position.

In India, we tend to compare ourselves with people directly with salary instead of skill.

Ansha Dixit

Yes that's correct! But I think it's not bad to know the details of our employees! How much they get paid! Basically transparency should be there! Don't you think?

Mohammed Abdul Rafay

Mostly due to comparisons they inform their employees not to disclose their salary with others.

Ansha Dixit

No but actually don't you think this is not a fair practice! I mean company should be transparent in every aspect! Salary is also one of those aspect! It would give people a fair chance to see how much they can grow being in this company and what efforts they have to make?

Mohammed Abdul Rafay

Yes, they need to mention it openly.

Ansha Dixit

Yeah true! But corporates sadly don't give this freedom! This is the main issue I think why inbuilt conflits happen? Why hatredness towards boss increases?🥺

Mohammed Abdul Rafay

Let's see how many companies in this group encourage employees talking about their salaries with colleagues.

Just for Fun, not to offend anyone with this comment.😀

Piyush Soni

Actually revealing your salary structure is important for the company. I will tell you why?
1. First of all, it gives you transparency where you stand and what all you have to do to achieve the amount of salary where your peers are at!
2. It also reflects the unbiased attitude of the company towards employees!
3. Also, employees would be more sure of how much they would grow in future being in the company!

Amardeep Kaushal

mostly companies are insecure when it comes to disclosure of employees salaries as for a same profile two different employees can have different salaries because of their own set of skills. Which is okay but emotionally and mentally such disclosures could led to enimosity (deadly office politics) within the team and company

Ansha Dixit

Agree! But various companies does unfair means such as favouritism or not incrementing the salary of much worthy employee!
What's your perspective on that?

Amardeep Kaushal

They do...but try to understand why someone becomes favourite? Reasons are only 2 - either that employee is a performer or is an asslicker of the superiors. (Sorry for my words here?🙏🤐

Srikanth Soni

One of the startups I worked with was Waste Ventures India. They were not only disrupting the urban waste management industry, but were also disrupting the way they managed team members. As a part of their efforts, one thing they practiced purposefullywas to list down salary of each employee on a Google spreadsheet which would be shared with all. No salary slips, only one Google spreadsheet for all. Every month the sheet would be updated after disbursing the salary.
By doing this, there was no room left for discussing(gossiping) salaries anymore. It was open for all to see. From the junior most level until the co-founders of the company (including perks and other allowances). I've personally never come across any other company that practices this level of transparency.

Ansha Dixit

Woah thats good! So do you see it as a positive thing or negetive thing?

Srikanth Soni

Having worked in both types of companies (one with "open for all" salary slips and another where "salary is confidential") I think the openness takes away a lot of burden from the employees as well as employers. I'd vouch for openness anyday. It's absolutely a positive and refreshing thing.

One thing to remember is: as an employer, you can either introduce it as a practice on day 0 or never practice it. Introducing this openness at a later stage is not recommended. But then, I'm open to experimenting this as well.

Bhanu Bhandari

There is no downside for employees to share salaries. One thing I've found best is to anonymise salary sharing (in the vein of levels.fyi), and no matter what employers may tell you about "money can't compensate for X thing in the company", it's mostly just overcompensating. One shouldn't fall for that.

Name the company, but not the employee. It may lead to doxxing. Companies are larger entities.

Ansha Dixit

Ok so you are saying basically based on the position, company should reveal the salary structure, not exactly person wise?

Agni Chatterjee

Might digress a bit but must watch https://youtu.be/aMcjxSThD54

Sandeep Parihar

Every employee is different!
Even though the roles they are hired for are same, their technical skills are somewhat same, but what matters and what differentiate between them is
their analytical skills,
their problem solving skills,
their learning curve,
their communication/ presentability,
their will to go above and beyond to solve problems,
their ambition and career path.

With this you can hire 5 fresh off campus boys and girls on same salary, but where their salary will be after 3 years depend on above things. And if employers are transparent about salaries, comparison starts, questions and debates starts among employees, which eventually reduce productivity or teams and peers.

See every employee is Lion in his eyes and every kid is king in her mothers eye, but when comes to employers, productivity and results matter😀
And if Employer is certain 1 boy/girl can solve his problems in half the time with better quality than other boy/girl. I am sure he will be worth more salary and if employee is not paid to his worth, he gets demotivated and eventually find a way out to competitors.

That’s why IIT’ian get 5 times joining salary as compared to a regular college as IIT have already filtered out the talent and prepped them for tough world😀

Think, for your grad batch, all kids paid same fees, but did they got same results from it, and did they came out with same skills, and are they all in similar financial situation today.

In short, disclosing salaries demotivate employees and reduce productivity.

Naresh Shetti

Well anyway they do it off record. Thr management knows it very well. But by just putting a confidentiality clause, the employees cannot confront the management with comparison data. However every company I know will always give the employee a hike when they join or atleast not negotiate the demand from the candidate.

If employees are unhappy due to payment it shd not reflect in their work and a comparison will start acting on their efficiency.

I believe there other reasons they want to maintain confidentiality other then just not wanting to pay. Cos if someone wants to quit the first thing management will ask is can we pay u better.

Varun Surana

It's ok in small team where you don't have department heads... Else office politics starts... Tough people discuss but management don't want to give any justification why someone is getting paid this or that to anyone.

Somya Jain

What would happen if everyone in an organisation knew how much their colleagues are earning? Answering this: Every person is paid on the basis of ones capability, experience and basic business ethics (dedication to work, punctuality, eye towards growth). These areas create huge differences in salaries. And hence cannot be disclosed.

Faraz Wadhwania

Salaries are paid for what you know and how you contribute to the topline and not with the amount of time you spend at your seat or office. There is much disparity in every organization. Opening pay structure will ultimately open up the battle or time vs contribution.

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