SYDNEY, September 4, 2012 /PRNewswire/ -- The International Career Institute (ICI) has announced that when it comes to workplace taboos, forget about politics and religion. Instead, think about salary. While the pay packet of those in the public service or those working as executives at listed stock exchange companies is made public, most workers have only a vague idea about what their colleagues earn.
The International Career Institute has reported that a survey by career networking site LinkMe found that 52 percent of individuals want transparent pay in their workplace. Half admit to lying about pay to co-workers, and almost one in four has found out what their fellow workers earn. Then why is salary such a forbidden topic in the workplace? Companies advise against employees talking about their pay because others might get upset about pay differences, ask for increase or at the height of anger, resign from their jobs.
Many employment contracts today prohibit workers to disclose their salaries to avoid any unfavourable situation that may happen if someone finds out that he is receiving less than his co-worker. Many instances of employees being terminated for revealing their pay have happened in recent times, according to the International Career Institute. "It's a very sensitive area for some businesses. Some employers regard the information as confidential and they don't want disturbances between staff or don't want it leaked outside the firm," said David Alexander, ICI Director of Student Services.
Reasons behind the confidentiality
Salary discussions are kept to a minimum to avoid uncomfortable scenarios such as an employee questioning a manager why a co-worker is earning more and minimize conflicts at work. David Alexander speaks of salary confidentiality as a way to dissuade talks on collective bargaining and keep costs down.
According to Mr. Alexander, there are employers who are simply obsessed about keeping information in control while others are seeing an obvious cost benefit. The rest are merely avoiding salary demands and incensed workers. He adds, "If employers can limit the complaints they hear from employees, the better."
However, employers trying to keep a tight rein on salary information might end up pushing their employees to resign. When workers don't have means to know how they are faring in the company's salary ladder, they might begin assessing themselves through what competitors pay and decide to leave job. Transparency in pay may suggest that employer is knowledgeable about what competitors are offering and that payroll has been adjusted to ensure that workers wouldn't have to jump ship because of it. It can send a message that every employee's worth is rightly valued and that there is clear progression in terms of salary and career. "I think you can get around a number of the retention issues if you provide a clear career progression pathway for staff members," says Mr. Alexander.
About the International Career Institute:
Belonging to a group of colleges established in 1978, the International Career Institute is an independent, private college committed to providing and developing career training programs in consultation with industry and employers. ICI serves thousands of students in 77 countries across 50+ subject areas. All ICI courses are delivered via distance learning requiring no in class attendance. For more information, please visit http://www.ici.net.au/.
