Employees are questioning their salary as pay transparency becomes more common, and employers are rushing to defend their compensation strategies.
Zach Wilson, a data and software engineer, exposed his salary history on LinkedIn on Friday, May 6, and it quickly went viral.
Wilson detailed his income and job description at tech behemoths such as Facebook and Netflix, from his $30,000 per year internship in 2014 to his current yearly compensation of $575,000 at Airbnb.
Wilson wrote: “I think discussing about remuneration should be less taboo.”
Salary data from websites such as Glassdoor and Blind is shared anonymously.
A Google employee also launched a spreadsheet to collect salary information from other Google employees.
Employees are armed with useful data that they may use to dispute their companies’ pay practices now that salary information is widely available.
Many employers, according to Maria Colacurcio, CEO of workplace equity software provider Syndio, are not equipped to handle their employees’ compensation problems.
She believes that businesses must identify and rectify injustices before they become a problem.
One purpose of the pay transparency movement is to assist minorities and women level the playing field.
In the United States, women earn just 82 cents for every dollar earned by a male, while black women earn only 63 cents for every dollar earned by a man.
Employees may use pay transparency to see where they stand in comparison to their colleagues, and they can offer data to their employer to request equitable compensation.
Because most companies are unaware of their issue areas, they only handle conflicts one at a time.
Organizations that simply consider equality within a certain job description or level risk missing out on opportunity disparities.
If certain groups are promoted more frequently or are onboarded at higher levels, opportunity disparities accumulate.
Employers must have a compensation philosophy that they can explain easily after they have identified their issue areas.
Then they must give managers the authority to explain that philosophy.
Employees are not just sharing their wage information, but new pay transparency legislation in seven states and numerous cities mandates companies to disclose the compensation range for all new job ads.
This might cause issues if the company pays its present staff less than the market wage.
Employers must have a data-driven compensation approach in order to justify their compensation philosophy.
They may then clearly explain to employees what it means to be at the top of the range and what it means to be in the middle of the range.
Colacurcio considers that recognizing compensation difficulties might assist businesses in tapping into untapped human capabilities.
She said: “It really does enable you to unlock opportunity for people and to look across your talent pool and figure out that something as simple as a travel policy or a scheduling flexibility policy is holding back an entire population of folks from an underrepresented background.