Why employers need to end the culture of wage secrecy

In many working environments, the discussion of money is still a taboo subject. Employees fear being viewed as greedy when asking for more money, a feeling that is perpetuated by organisations shying away from sharing wage bandings or including salaries in the recruitment process. At The Future Laboratory, we believe that excessive discretion is not beneficial to anyone.  

What many organisations fail to consider is that openness with salary information benefits the employer. Research by SMART Recruitment online shows companies who post their salary information receive a 30% increase in applications. Applying for roles is time-consuming, and many people do not want to waste their time filling out forms and then going through an interview process only not to be financially satisfied with the outcome. It saves recruiters time as they are not communicating with people whose monetary expectations are not in line with their organisations. 

Not including the salary banding on job adverts is particularly detrimental to women. Historically, women have been told from an early age to be more passive and agreeable, while men are encouraged to be authoritative and assertive. This has led to men getting better deals during the salary negotiation process while women often settle for less than they deserve. Including the salary bands in job descriptions reduces apprehension when the conversation about pay begins.  

The lack of transparency when it comes to salaries is also damaging to the success of ethnic minorities. People of the global majority typically earn less than their white counterparts. Adopting a culture of secrecy when it comes to salary makes it more challenging for people of colour to know if they are being underpaid.