When workers know their colleagues’ salaries, productivity can jump
. When workers found out their peers earned more than they expected, productivity decreased, Dr. Cullen added.
Together, the findings on how pay transparency can impact workers’ feelings pose a challenge for human resources departments that don’t have sharp policies on promotions or haven’t trained managers on how to discuss compensation with their teams. Exabeam Inc., a cybersecurity firm in Foster City, Calif., started publishing salary ranges in January. Gianna Driver, chief human resources officer, said the move prompted an employee to ask why she was on the low end of the pay range for her role. The worker, who earned $130,000 in base compensation, saw a job posting that advertised a range of $120,000 and $180,000.
Despite some uncomfortable conversations, Ms. Driver said she’s seen no discernible drop-off in productivity.
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