Pay transparency may provide every employee the access to view what their colleagues earn. It is expected that pay transparency will limit employers’ bargaining power in recruitment. It also can foster resentment among team members at the workplace.
Pay transparency is also helpful for employers. Because it leads to coherence and improves employee loyalty. It also promotes diversity and increases workers’ productivity. That’s why now many companies are implementing pay transparency in their organization.
When a company applies pay transparency, it allows the employees to discuss their payments openly. It eliminates any discrepancy among the workers. However, if you don’t have a clear salary policy pay transparency can be troublesome.
