Making payments public can reduce conflicts, but requires careful planning

By: Trademagazin Date: 2023. 02. 02. 10:31

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Depending on the company culture, professionals approach the issue of salary transparency, i.e. making salaries public, differently – partly, for example, because it may represent a conflict of interest between the employer and employee side. They are often afraid of internal wage tensions, the prevention or management of which can be a significant expense for companies. Is it worth making salaries public? What effects can this have on the operation of companies? – among other things, the latest broadcast of the Profession.hu Backstage podcast revolves around these questions.

There are many arguments in favor of making salaries public, such as, for example, that this can make recruitment more efficient, since in many cases, only at the end of the hiring process, it becomes clear that the ideas of the two parties do not meet when it comes to salaries. By filtering out such cases, the burden can be relieved on the professionals involved in HR processes.

The gender wage gap is currently still a problem: based on Eurostat data, in 2020, women’s gross hourly wages, taking into account the same positions, were on average 13 percent lower than men’s in the European Union. By introducing wage transparency, this difference can be reduced globally, and a given company can benefit if job seekers see that it is truly committed to proportional wages. At the same time, wage transparency can cause internal conflicts and wage tension – on the one hand between colleagues, and on the other hand between the employer and the employee. However, such situations can be prevented with thorough planning and rethinking.