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Ivey Knowledge
Pay transparency can send mixed signals to employees
While pay transparency is designed to combat inequity and discrimination, detractors are concerned it could cause envy between co-workers leading to dissatisfaction, and lack of motivation and cooperation.
Even though there is an increasing push towards greater pay transparency in the workplace, little consensus exists regarding its effect on organizations. In the new, foundational whitepaper, Pay Transparency: Silver bullet or kryptonite? Kun Huo of the Ivey Business School at Western University and Kate Patterson of WU Vienna explore both the intended and potential unintended consequences of pulling back the curtain on employee compensation.
