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Salary Transparency

With the current competition for talent in the job market, salary transparency has become a controversial issue. When a new hire is brought in at a higher salary than a current employee with the same title, job duties, and experience level, should the current employee’s compensation be brought up to match a new hire? Should staff pay be common knowledge and openly discussed in general? These are all very difficult questions to answer, but here is Sudina Search’s take on the subject:

What is Salary Transparency?

Pay transparency is a strategy for talking about employee salaries within the company. All salary information about everyone is disclosed to all employees. So, everyone knows what everyone is making. According to a 2021 report from compensation software company Beqom, 51 percent of 1,000 employed adults would switch companies to one with more pay transparency. And in 2019, 72 percent of the 1,600 people polled felt that there should be a national law for companies to disclose its gender pay gap figures.

New Hire Compensation

Labor economists call it “salary compression,” which is something that happens when companies are strict on raising employees’ salaries but, at the same time, are forced to pay higher wages to attract new talent. A report from the Conference Board’s Labor Market Institute states the salary gap between the wages of 20-24 year-olds and 25-34 year-olds (who have been working longer) recently declined to its smallest size in 36 years.

Should Staff Pay be Common Knowledge

As previously stated, staff pay being common knowledge is a controversial issue in today’s workforce. There are many arguments in favor of this movement stating salary transparency will grant the ability to prove that the company is paying fair wages for all employees and reduced claims of pay discrimination from current and former workers. This will also provide clients and candidates with leveraged salary data to attract and retain a better workforce.

Transparency can be beneficial for potential candidates and current employees because they know what they are earning and they also know what the person sitting next to them is earning. Salary transparency can also be good for the company because it can provide proof that it is paying all workers a fair and equitable salary.

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Sudina Search is Maryland’s Premier Boutique Search Firm. Sudina Search offers professionals an unparalleled level of service. With a team of dedicated and skilled recruiters, Sudina Search is dedicated to making your job search a personalized experience. We are a full-service recruiting firm that offers Temporary and Permanent placements in IT, Accounting, HR and Engineering fields. Visit our website at to learn more.