Knowledge@Australian School of Business

Salary Crunch: What is the Price of Wage Transparency?


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Whether or not wages should be kept confidential is a perennial hot

topic. Even if an organisation keeps quiet about remuneration
differences between staff, what people earn has an uncanny way of being
revealed. And the likelihood is that employees with similar workplace
responsibilities who are paid less than others will become de-motivated.
A new study from the Australian School of Business finds that wage
transparency can have negative effects on productivity and the quality
of work. But experts say there are ways to manage this sensitive issue.

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