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Why Do Employers Keep Salaries Secret?
Opening up the company coffers, and letting employees choose their compensation, is a step toward better business practices.
Letting people choose their own salary works. With employee engagement in a state of stagnation, and 79% of workers citing ‘lack of appreciation’ as their reason for leaving a job, opening up salaries is a powerful way to show your employees they are trusted. While it may seem like a risky idea to let your employees choose how much they get paid, in fact merely the act of doing so is a huge step towards improving engagement — and happy employees lead to loyal customers (‘companies with >50% employee engagement have >80% customer retention’).
As the next generation of workers moves into the employment market, companies will not only have to increase external transparency to keep their customer base, but work on internal transparency as well to attract the best employees. Revealing how much each employee earns, and offering the freedom to choose how much they take home, will prove to be the cornerstone of a transparent business environment.
Keeping the books shut
While it may seem like good sense to control company finances absolutely, keeping your employees in the dark is a large blow to morale, and in fact 90% of millennials surveyed by Qualtrics said they would happily stay with…
