From Wall Street Journal volume XXXVIII no 158

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2. Workers Share Their Salary Secrets
By LAUREN W EBER
ANDRA CHEL E MMA SILVERMAN
At Brian Bader's orientation for a tech­
support job with Apple Inc. three years ago,
he says, human-resources managers ran
down the list of guidelines workers were ex­
pected to follow. Don't use explicit language
on calls with customers . Treat other em­
ployees with respect. And, he says, they told
the assembled recruits, don't discuss your
pay with co-workers.
That last requirement backfired. "It just
made me more curi ous," said Mr. Bader, 25
years old, who had been offered $12 per
hour. Throughout the day's breaks, he sur­
veyed his new colleagues about their wages,
and learned that everyone was earning
somewhere between $10 and $12 per hour.
Apple declined to comment on internal poli­
cies.
That information became the basis of his
decision to leave his job just three months
later, after he realized-thanks to the per­
formance data managers shared with their
teams every week, detailing such metrics as
how many calls each employee had an­
swered and probl ems solved-that he was
twice as productive as the lowest performer
on the team, yet earned only 20% more. "It
irked me. If I'm doing double the work, why
am I not seeing double the pay?" said Mr.
Bader, who is about to graduate from Cali­
fornia State University, Sacramento.
Comparing salaries among colleagues has
long been a taboo of workplace chatter, but
that is changing as Millennials-individuals
born in the 1980s and 1990s-join the labor
force. Accustomed to documenting their
lives in real time on social-media forums
like Facebook and Twitter, they are bringing
their embrace of self-disclosure into the of­
fice with them. And they're using this infor­
mation to negotiate raises at their current
employer or higher salaries when moving to
a new job. .
Not surprisingly, many firms want to'
keep salary information private. They hope
to retain the upper hand on salary negotia­
tion and hope to keep flawed or even dis­
criminatory compensation systems under
wraps.
But for workers, irIformation is power,
and young people recognize this. "People
are much more willing to talk about pay
than they.were even 10 years ago," says
. . . ,
How to Discuss Pay at Work I Tips for bringing up the subject in a constructive way
hen talking about salary with co-workers: When tal
1. Reserve these conversations
for people you tru st
2. Know your motivation-don't
bring up the topic if you J
ust
want to brag. That never goes
over well.
3. If you plan to use the
information to negotiate with
your boss, ask your colleagues'
permission firs t. They may
feel OK if you use the info
anonymously, or With names
attached, but check first.
4. Be willi ng to be disappointed
or embarrassed. You might find
out that your salary falls short
of your peer's.
1. It's acceptable to ask a
manager about the company's
pay philosophy and pay
practices. Leaders should be
able to explain why they pay the
way they do, and what you need
to do to increase your salary.
2. Timing is everything.
If you're asking for a raise,
do it after acing a project.
3. Understand t he company
context. Don't ask for a raise If
the company Just announced a
terrible quarter.
4. Don't betray your co-workers'
confidence.
Rusty Rueff, career expert at Glassdoor
Kevin Hallock, director of the Institute for
Compensat ion Studies at Cornell University
arid author of the 2012 book "Pay: Why Peo­
ple Earn What They Earn and What You Can
Do Now to Make More."
Still, revealing pay can be risky business.
Pay differentials, when they become pub­
lic,can engender resentment, envy and dis­
satisfaction among workers, especially those
who find themselves on the low end ofthe
scale. One 2012 study by researchers at Uni­
versity of California, Berkeley and Princeton
University examined mor e than 6,400 Uni­
versity of California employees once they
became aware of a database listing staffers'
salaries. Employees who were paid below
the median were unhappy once they learned
their colleagues' pay and were more likely
to look for other jobs.
While some of this irIformation-such as
salaries of certain state employees-has
long been a matter of public record, the In­
ternet has made it far more accessible, too,
says Mr. Hallock. Sites where people post
salaries and other feedback about employ­
ers, such as Glassdoor.com, also contribute
to the sense that pay is no longer a private
issue.
When Dustin Zick, 25, was ready to leave
his job in 2012 as a social-media specialist
at BuySeasons Inc., a Milwaukee-based on­
line retailer, he compared notes with "five
or six" trusted co-workers about their pay,
and found most of them happy to divulge.
Several of his colleagues, also looking for
new opportunities, strategized together
about what salaries they were aiming for
and how to negotiate to get there. The con­
versations helped Mr. Zick achieve his target
salary at his new position as a social-media
manager at a hospitality company, he says.
"There's a cultu re of transparency in my
generation," he says. And "the younger you
are, the more likely an employer will tr y to
get you for cheap. So to know what your
peers are making benefits all parties in­
volved, except maybe the employer."
Companies might not like transparency,
but they cannot outright bar rank-and-file
employees from disclosing their pay inter­
nally or externally, under the federal Na­
tional Labor Relations Act, says 'Fort Lau­
derdale employment lawyer Charles
Caulkins of law firm Fisher & Phillips. That
means that an employee handbook or social­
media policy barring workers from disclos­
ing their pay is generally a violation, he
says. (The rules are different for managers
and supervisors, who can legally be pre­
vented from disclosing pay.)
Ultimately, says Mr. Hallock, compensa­
tion is an inexact science, determined by la­
bor-market conditions, company budgets
and individual employees' performance and
turnover risk. Companies use salaries and
rais es to retain their high performers, but
measuring performance itself is difficult, es­
pecially in fields that defy simple metrics
like widgets built or customer-service calls
answered.
So' one way for employers to head off in­
ternal politics: Be even more transparent.
New York data-analytics company Su­
mAlI makes pay scales and individual sala­
ries open to everyone in the company. The
company says that employees work more ef­
ficientfy when no one is trying to guess
whether their colleagues are making more
than they are.
And in his current tech startup, Jay Adel­
son, a co-founder of several tech companies,
including the social-media site Digg, is ex­
perimenting with peer-based bonuses and
clear salary bands to help employees feel
they are getting paid equitably, although in­
dividual salaries aren't published.
Workers and employers who support
transparency argue it helps ensure people
are paid fairly, and reduces discrimination
based on gender or other characteristics. Of
course, not every employee is, or would be,
willing to spill. Lucy Bayly, 43, a copywriter
for an advertising agency in Oneonta, N.Y.,
compares discussions about income with
conversations about sex. "You're dying to
know, but it's too rude to ask."
Such conversations run the risk of inspir­
ing a corrosive kind of jealousy, she says.
''You think you're satisfied and then all of a
sudden, you find out someone is paid a little
more, and it ruins your day because you
start wondering, 'Have I settled?' "
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