Comment by sokoloff

3 years ago

I’m opposed to disclosure laws that would be prone to expose the income of individual people.

If Alice is the only SWEPR5 at a company, that proposal publishes her salary. If Bob is clearly the best SWEPR4, Cathy the middle, and Dave just barely got promoted to that level, their salaries are also individually published.

I don’t object to good faith ranges being required in job listings, but I oppose anything that would tend to publish an individual’s data that they should be able to keep private.

(That’s before even getting to the fact that salary is nowhere near the full compensation picture.)

Did you know there are some countries where you can look up anyone's income?

  • Taxable income is public information in Sweden, and you can basically buy a catalog containing the previous years income for everyone in a given area if you'd like.

    Stuff like addresses and so on is also public information in Sweden, for what it's worth. This always makes me feel a bit strange when hearing people considering releasing someone's address to be doxxing and something horrible - like you can just look up any person in Sweden, and the societal consequence is that literally nothing happens. Same with the incomes, nothing whatsoever happens from having this be public.

    • Actually addresses being public are causing issues. Sweden has a lot of problems with gang violence, and gang members often register their public addresses to other peoples addresses, causing innocent people to be killed. The address you enter is in no way being verified beyond it needing to be a valid address.

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    • I have a very hard time believing that sales-people and trades-people don't take it into considering when negotiating or quoting a price. One of the reasons a car sales person wants to "check your credit" early in the process is to get your credit rating and address - which helps them guess your price sensitivity - and many home services certainly take into account the area you live in even when it is irrelevant.

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    • the societal consequence is that literally nothing happens. Same with the incomes, nothing whatsoever happens from having this be public.

      Objectively not true. Scammers use that data all the time to target high net worth individuals. Especially high net worth old people living alone.

  • Norway is one

Management is the only one who benefits when labor doesn’t openly share salary information. Let the information flow. Knowledge is power.

  • And job seekers. They don’t want potential employers knowing how much they made.

    • I'm pretty sure they know what you made if you worked at a large company anyway. For small ones they can probably guess better than the job seeker can. Excluding insider info because it goes both ways.

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    • Too late. Experian already buys and sells your salary information, and potential employers pay them to see it. I believe the product is "Employment Insight" but it could be one of their others.

      I've literally seen the salaries flow from payroll straight onto their servers.

  • No. With full public information, bad employees benefit from being able to ask for more, good employees just flee elsewhere. Because it’s impossible to reason someone on their skills.

    Full information is hell on Earth.

    • This is the opposite of my experience with salary transparency both as an employee and a manager. It tended to made unproductive employees leave when they realized that the company did not consider them as critical as they imagined themselves to be which saved a ton of effort because we rarely needed to resort to PIPs or firing. It also made it clearer to productive employees how much their work was valued.

    • Management’s job is to get rid of bad employees. Good employees do not have unlimited places to “flee” to. And full information is when markets allocate resources most efficiently.

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Why does that matter? They should all be able to know each other's salaries.

  • What’s your salary?

    • 40 euros/hour right now. Last job was USD $98k/year. Before that it was $65k. Before that it was $42k.

      I was part of a team that led a salary transparency initiative at a previous job, and it eventually led to the creation of a union there, but not until after I left for unrelated reasons.

      I don't get this weird paranoia about salary privacy. Opening it up helped everyone negotiate.

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Transparency also helps to find out that you the foreigner gets paid less

Why shouldn't Dave and Cathy know what Bob is earning? They're the same level, they should earn the same.

  • While I support all efforts at increasing information transparency, I disagree that prices need to be the same. It is possible that humans are sufficiently different in the quality of the labor they are selling that a buyer might price them differently.

    For example, I am willing to pay a higher price for someone has 10 years of experience and is less likely to make mistakes or other desirable qualifies more than someone who has 0 years of experience, even though they are doing the same work.

    • The problem with your example is that you are making the assumption that someone with 10 years of experience is less likely to make mistakes in practice than the person with 0 years of experience. I've seen several examples over my career where the technically "more experienced" individual is not truly the better suited for the job. You won't know that until you hire them and, in my opinion, is a good reason for why you should pay someone based on the job (so long as they qualify for it). It doesn't mean that everyone needs to make exactly the same amount, because I think there is an argument to be made for someone who has more tenure at a company to retain them and for their role-specific experience. But that shouldn't be a >5% difference.

      Also, I don't see how people can't see that this is precisely the logic that contributes to women generally getting paid less for doing the same job. Anecdotally, I joined a company and had about 7 years of experience. My "peers" in performing exactly the same duties as me had probably about 25 years of experience. I was responsible for the 2nd largest revenue generating P&L that generated the highest profit margin (which I actually turned around from losing money in 6 months). I found out I was getting paid $70k less than "my peers." Are you going to tell me that despite performing the exact same job and actually performing it objectively "better" that I should have made less money? This is the kind of stuff that routinely happens to women.

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    • Isn’t difference in experience one aspect that is represented by different levels? In other words, it’s not the same work if experience vastly differs.

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  • They're at the same level, but maybe not doing the same job. Even if they're nominally in the same "job code" the actual mechanics of what they are doing, the sensitivity of their work, the skills required for success, the markets/industries they are operating in, the pay scale where they live, the level of functional support they are receiving may all be substantially different. Of course there may also be other decisions such as upping salary to entice an employee not to accept that other job offer they got (do you want to remove pay leverage of looking for jobs elsewhere by mandating same salaries?), or any such other consideration.

    Individual pay isn't some 2+2=4 math equation, it's multifactorial. Now any company with good internal controls would have people in some sort of band where for comparable (not identical) work there's a range of normalcy relative to the value the work provides in the given markets the labor is occurring.

    • > the actual mechanics of what they are doing, the sensitivity of their work, the skills required for success, the markets/industries they are operating in

      Surely these are all criteria that should determine your level. What's the point of levels if you're saying each level consists of arbitrary other levels?

      I agree that a range should be public, but an employee's salary should remain within the range for their level. If they're demonstrably more valuable to the company, they should be promoted within a transparent structure.

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  • It's a matter of perspective.

    From a worker point of view, being open about what we're earning will help bring to light if we're being exploited.

    From a business owner point of view, employees having this knowledge disturbs the power imbalance employers enjoy when it comes to compensation negotiations.

    I think more people than you'd expect in HN are in the latter camp. This site was launched as Startup News, after all.

  • Everyone at the same level is not the same. At most companies people can expect to be in level for a few years.

  • Pay scales are ranges not points. You want to be able to reward good performers higher than lesser performers, even in the same level, so that the incentives are aligned. Promotions to a next level are part of this but those only happen every few years for most people.

  • Why should everyone at the same level earn the same? There are still differences in skill and willingness to work for a given range.

    • "Willingness to work for a given range" gets exploited by employers at the expense of employees. It helps prop up structural (gender/race) pay gaps and breeds distrust among employees as some salaries inevitably leak out.

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  • That's communism. In companies, one's salary is related with his/her output or salary negotiation skills.. Dave, Cathy and Bob could be in the same level, where the salary range fluctuates between 60k - 95k. Who is where, depends of the both factors mentioned above.

  • > They're the same level, they should earn the same.

    No, they shouldn't. They should earn exactly as much as they can get their employer to pay them. I've worked hard in my career, I've negotiated hard for pay at new jobs, raises, bonuses, promotions, etc. Some people don't. If I'm not going to be able to negotiate my pay, by definition I'm going to be making less. Why in the world would I want that?

Salary is about 90% of the compensation picture for almost everyone in the US. If you add in things like 401(k) matching and employee-paid insurance premiums, you've got about 99% of the picture covered (in addition to having something far too complex to publish on any individual level). The vast majority of companies offer no stock, no or minimal/token bonuses, and no perks with any real financial value.

> If Bob is clearly the best SWEPR4, Cathy the middle, and Dave just barely got promoted to that level ...

I think you're making a big presumption that the "clearly the best" gets the most income!

(Although the more usual argument against transparency proposals is that everyone thinks they're "clealry the best" so all except the highest paid would be annoyed.)

Why would it matter if Alice was the only one or not? Disclosure laws inherently expose the income of everyone

  • If there are 100 SWEPR5s in the proposal above, Alice's nosy co-worker or neighbor only learns the range of Alice's salary.

    If Alice is the only one, they learn the precise value.

    • I think the question is more why should an individual's salary be private?

      Personally, I think money is power, and I want to know about power disparities to better protect myself. But I understand there are factors to consider.

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    • Does the precise value matter for anything though? I would say that any privacy intrusion happens with the range already.