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Pay Ranges, Yes. Everyone's Salary in Public, No

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Practice the other side:Why Companies Should Be Open About Pay

Pay Ranges, Yes. Everyone's Salary in Public, No

Where to draw the line

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Model script

Good morning. I run a small design studio in Singapore with twelve employees. Some people say every company should publish every employee's salary. Today, I'll argue that this goes too far, even though some openness is good.

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Useful phrases

  • this goes too far

    This is more than is reasonable.

  • even though

    Although.

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  1. 01Pay Ranges, Yes. Everyone's Salary in Public, No

    Good morning. I run a small design studio in Singapore with twelve employees. Some people say every company should publish every employee's salary. Today, I'll argue that this goes too far, even though some openness is good.

  2. 02Where I Agree

    Let me start with where I agree. The EU's Pay Transparency Directive says applicants have the right to know the starting pay or range, and employers can't ask about pay history. I think those are good rules.

    Source: Directive (EU) 2023/970 of the European Parliament and of the Council (Pay Transparency Directive), Article 5, EUR-Lex

  3. 03Where I Disagree

    Where I disagree is the next step: publishing each person's exact salary with their name for everyone to see. That's a different thing, and I see three problems with it.

  4. 04Problem 1: Privacy

    First, privacy. Someone's pay can reveal personal things. Maybe they asked to work fewer hours to care for a parent, or they accepted lower pay for more flexibility. They shouldn't have to explain those choices to the whole office.

  5. 05Problem 2: Numbers Without Context

    Second, numbers don't show context. A salary list doesn't show who has rare skills, who brings in big clients, or who joined during a difficult year. Without context, people may draw the wrong conclusions.

  6. 06Problem 3: Less Flexibility for Small Teams

    Third, in a small company like mine, I sometimes need to make special arrangements, like a raise to keep someone who got another offer. Fully public salaries could turn every decision into a team debate.

  7. 07A Better Middle Path

    So what's the alternative? Publish pay ranges and explain how pay is decided. Let workers share their own pay if they want to. But don't force every name and number onto a public list.

  8. 08Conclusion

    In conclusion, I believe in transparent rules, but private details. Openness should protect workers, not expose them. Thank you.

Cover photo by tookapic on Pixabay