When (and when not) to talk about salary at work

Have you ever been told by your boss that you are not allowed to discuss salary at work? If so, they may be violating the law.

When to Talk About Salary at Work

If one or more of the following situations are true, it may be helpful to be more open about your compensation.

When You Want More Money

Discomfort around salary discussions is an issue that many employees face. In fact, a salary study by job search and professional companies Zippia indicates that although only 45% of workers feel they are paid fairly, 50% do not feel comfortable discussing salary in the workplace. Moreover, people who want to discuss their compensation with co-workers expect a significant salary increase.

Of course, it’s difficult to say which came first – the willingness to discuss salary or the belief that the next raise will be significant.

When You Want Pay Equity

Women still earn only 80 cents for every dollar earned by men, according to research from PayScale, a compensation data provider and software company. Even the adjusted gender pay gap, which compares only the salaries of women and men with the same jobs, experience, and education, stands at 98 cents on the dollar. However, PayScale’s data also shows that when companies adopt transparent pay practices, the gender pay gap disappears within their organization.

“Pay transparency” can mean many different things, from conducting pay audits to ensure wage equity among workers of different genders and races, to being completely open about everyone’s salary in the company, from the CEO to the workers.

When You Have the Power to Change Culture

If you are a decision-maker at your company, you can do more than just talk to your colleagues about pay. You can advocate for a greater commitment to transparency regarding salaries, benefits, and other types of compensation.

In addition to adopting more transparent pay practices, your organization may consider conducting pay audits to ensure that workers are being paid fairly.

When to Keep Salary Information to Yourself

There are times when it is better to keep salary information to yourself. Before making a decision, consider whether any of these situations apply to you.

When You Don’t Have the Full Picture

Managers who advise employees not to discuss salary with colleagues may do so because they want to avoid tension and hurt feelings among employees. Regardless of the legal issues, there is some truth to this concern, but not because employees with equal qualifications and similar skills and experience should be paid widely different amounts. (It certainly shouldn’t happen).

The problem with sharing salary information with colleagues is that you rarely get the full picture. For example, your colleague may be earning more than you due to bias or a bad company policy, or they may be earning more because they have a degree that you lack, or have more experience in another area that enhances their skill set. It is difficult to gather all the data you need in a casual conversation.

Your best option may be to support any anecdotal information you receive with more general research on appropriate salaries in your field. Salary surveys and tools from companies like Glassdoor, PayScale, Indeed, and others can help you establish a reasonable salary range for your position and goals.

When You Are Asked About Your Salary History

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Many states, from California to New Jersey, have imposed bans on salary history, prohibiting employers from requesting information about your pay in previous jobs.

However, even if it is still legal in your state for hiring managers to ask you about your salary history, you may want to steer the conversation away from the past. Tying salary offers to previous wages makes it difficult, if not impossible, for low-paid workers to improve their financial situation. In fact, this contributes to increasing the wage gap between genders and other pay inequalities related to race, ethnicity, and other factors.

If you are negotiating salary, you do not want to bring any of this up. Instead, focus the conversation on the job at hand. Salary information prior to the job interview will help you target appropriate compensation.

When Your Conscience Says No

Regardless of what the law states about your rights, or what research shows about achieving financial goals, there will be times when you feel uncomfortable discussing money at work. Perhaps you have heard horror stories of colleagues facing issues with their supervisors, regardless of whether management should have the authority to intervene. Or perhaps you are feeling pressured by coworkers to disclose financial information you would prefer to keep to yourself.

Regardless of the reason making you feel uncomfortable, it is important to listen to your instincts. You cannot make the world a better, fairer place if you are worried about paying your bills. Take care of yourself and your financial security first – then consider looking for a new job where you feel secure advocating for fair pay.

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Sources:

• The National Labor Relations Board. “National Labor Relations Act.”
• Zippia. “Salary Study: Half of Workers Are Willing to Share Their Salaries (and the Other Half Are Losing Out).”
• PayScale. “Does Pay Transparency Close the Gender Wage Gap?” page 2.
• California Legislative Information. “Bill No. 168: Chapter 688.”
• NJ.gov. “Executive Order No. 1.”

Source: https://www.thebalancemoney.com/when-and-when-not-to-talk-about-salary-at-work-5120753