Payment transparency is one of the burning issues of the modern job market. Traditional corporate culture implies keeping workers’ salaries a secret from each other. You may apply for the best linkedin resume service to ensure the best position and still fall into the payment gap. It is especially relevant for women.
Besides the general culture of secrecy, women suffer from gender biases and underrepresentation. In this case, payment secrecy becomes even more harmful. Women may lose up to 10% of their income due to these factors.
Pay transparency may have a positive impact on the issue at hand. The provision of payment transparency may create a healthier, more inclusive working environment. This will be beneficial for all participants of the market: men, women, and corporate owners.
Reasons for pay secrecy
Pay secrecy is a common element of the modern corporate culture. Most of the time, companies suggest negotiating actual payment during the job interview. Employers insist on not sharing this information after the sum is set.
According to the Linkedin 2019 survey, most the employers are hesitant about sharing information about possible payments:
- 51% of managers do not share pay information and would not do so in the future.
- 27% do not share the information but consider doing it in the future.
- 22% share the pay info openly.
In the end, more than half of the survey keeps the pay info a secret.
The primary reason for not sharing the information is to negate possible conflicts. Payments solidify during the job negotiations. The final decision depends on several factors, including the applicant’s presentation and HR’ goals.
As a result, the same specialists may create disturbance in the company due to the difference in salary. Another reason for secrecy is a concern that applicants will vote for the maximal wage immediately. This could lead to a managerial and financial crisis.
Despite the heavy presence of secrecy in the working places, the pay gap is evident. Hiding exact salary numbers helps to keep people oblivious concerning their positions. At the same time, the problem is omnipresent and persistent in different industries.
Women in Pay Gap
Women suffer the most due to the pay secrecy policy. The bias about women implies that they are unreliable workers. Women may take a sudden maternal leave, which will cause losses for the company. In addition, the company should cover this leave. This stereotype is especially relevant to leadership positions, where women are underrepresented.
Women can make their progress in corporate ranks nonetheless. However, it is much harder to get promoted than men. Usually, higher managers promote men due to their potential for growth and capability to invest in the company. Women get promotions only when they have proven their worth to the company.
As a result, women may have a wage from 10% to 20% less than men have. The most disturbing fact about the issue is that it is a part of a culture. According to the law regulations, everyone should receive equal opportunities and wages. In reality, there are strong misconceptions about different people’s capacity and their potential.
Occupations that have male dominance in job positions contribute to the gender pay gap as well. Women are underrepresented in the service industry, food preparation, repair and maintenance, and sales. Women who try to realize themselves professionally in these spheres face pay inequality.
The potential harm of pay secrecy
Pay secrecy creates not only the gap between different positions and wages. It slows down business development as a whole. Secrecy is an extremely conservative policy that takes minimum risks to save profits.
At the same time, every industry develops fast due to general technological advancement. There are always new applicants who are qualified to perform regular tasks more efficiently. Many of these applicants are women.
Yet, because of the pay secrecy policy, they do not have a chance to take leading positions or get promoted respectively. Willing to take more risks and promote people, who deserve it based on skills and not gender, may have a massive positive impact on the business development in the long term.
Pay transparency as a solution
Despite the common concerns about having different wages, pay transparency may solve the problem of the pay gap. Pay transparency creates a healthy, competitive environment. Applicants know the range for their wages and will work respectively.
Besides, pay transparency helps to neutralize the gender pay gap. When a company shows the wage range honestly, workers start to earn similarly. It is true for women as well. Women start to earn a dollar for each dollar that men earn.
Pay transparency should be provided at the stage of the job description. The job negotiation may remain part of the interviewing process. Yet, applicants will know in which pay range they fall and what skills they need to get a promotion.
Final words
The payments secrecy policy is a conservative, harmful practice that remains in the modern corporate culture. The main reason for its provision is to keep a healthy atmosphere within the working team.
Yet, payment secrecy creates pay gaps, which are harmful to business. Women suffer from the pay gap the most. In addition to general bias, the pay gap prevents professional realization for women.
Pay transparency is a practice that can solve the issue and help modern businesses to thrive. Presenting the wage range in the job description and giving equal opportunities for all workers creates an inclusive and equal working environment.
