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Pay transparency advocates claim that increased awareness about how much coworkers are being paid helps stop speculative judgments about other team members' pay based on faulty data points, like what type of car a coworker drives.
Findings
Additional insights we found via Harvard Business Review
Equity theory, coined by behavioral psychologist J. Stacey Adams, states that employees are motivated by their sense of fairness. For example, an employee who feels they aren't paid as much as someone who does less work than them might not be motivated to work as hard, because they don't feel like it will result in higher pay.
While discussing salary with coworkers is legal, it's not uncommon for some businesses to retaliate against workers who openly discuss their salaries with others.
Some organizational psychologists point to social media and the comfort with which many young people freely share personal details about their lives on various platforms as the motivation for increased pay transparency efforts among younger workers.
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