For the entrepreneur, this subject is flammable. It goes to the heart of the social contract, to the ego, and to the very structure of costs. But beyond the legal constraint, is salary transparency the managerial nightmare we fear or the ultimate performance lever?
The shock wave: why now?
For decades, information asymmetry was the norm. The employer knew what he paid everyone, while the employee only knew his own figure (and sometimes that of a colleague after one too many drinks). This opacity served as a negotiating lever for companies.
But three forces are breaking this pattern:
- The European Directive (2023/970): It requires companies with more than 100 employees to publish their pay gaps. Even more, it prohibits confidentiality clauses on salaries. A candidate will soon be able to ask the average salary level for their position even before the interview.
- The quest for meaning of Gen Z and Millennials: For these generations, secrecy is synonymous with injustice. They demand fairness, clarity and, above all, objective progression criteria.
- The war for talent: In a tight market, companies that display color (and salary on the job offer) attract more qualified candidates and save valuable time.
The specter of the “Ego War”
The major fear of every leader is simple: chaos. “If Paul finds out that Julie earns 200 euros more, he will stop working or demand an immediate raise. » This is the risk of the feeling of relative injustice. Transparency without education is a cluster bomb. If salary gaps are not justified by skills, seniority or clear responsibilities, transparency will only highlight poor management.
However, studies (notably those carried out in the Nordic countries or by pioneers like Buffer) show that transparency radically reduces “corridor noise”. We no longer fantasize about the neighbor’s salary, we focus on the criteria to reach the next level.
The three shades of transparency
There is no single model. As an entrepreneur, you must choose your cursor:
1. Transparency of criteria (The subsistence minimum)
Here, we do not reveal individual salaries, but we make the salary scale public. Every employee knows that for the position of “Junior Project Manager”, the range is €38k to €42k. We clearly define the criteria for moving to the Senior level. This is the end of “pay to customer”.
2. Statistical transparency
The company communicates on averages and medians by department or by gender. It is the ideal tool to prove the absence of gender gap and reassure about overall fairness without pointing the finger at individuals.
3. Total transparency (The “Open Pay” model)
We publish a spreadsheet accessible to all employees (or even the public) with everyone’s name and their exact salary. It’s radical, it requires an ultra-mature corporate culture, but it’s a talent magnet for those looking for absolute honesty.
Why the entrepreneur has everything to gain
Moving to transparency is not just compliance, it is a strategic investment.
- Saving time during recruitment: According to LinkedIn, job postings that mention a salary range receive 45% more applications. You naturally filter candidates whose claims are beyond the budget.
- The end of “market” negotiations: The annual negotiation becomes a discussion about performance and skills, rather than an exhausting psychological tug-of-war.
- A culture of trust: Nothing says “I respect you” more than sharing the financial realities of the business. This makes teams responsible for profitability issues.
How to make a successful transition: The practical guide
If you decide to open Pandora’s box, do it methodically. You can’t go from shadow to full light without dazzling everyone.
Step 1: Clean the kitchen
Before making salaries public (or semi-public), make sure they are consistent. If you discover anomalies (two people in the same position with a 20% difference without good reason), you must correct them before the announcement. Plan a budget for smoothing.
Step 2: Build an objective grid
Salary should no longer be the result of a “genius negotiation” by the candidate, but the translation of a value. Use clear pillars:
- Technical expertise
- Impact on business
- Management / Mentoring
- Seniority
Step 3: Communicate the “Why”
Bring your teams together. Explain that transparency aims to ensure fairness and provide career visibility. Be prepared to answer difficult questions. The role of the manager here is that of an educator, not an accountant.
The hidden obstacle: fear of the market
Some entrepreneurs fear that transparency will make it easier for competitors to poach them. “If my competitor knows exactly how much I pay my developers, he only has to add 5% to steal them from me. »
It’s a view of the mind. In a world where Glassdoor and social media exist, your competitors already have a pretty good idea of your prices. What retains a talent is not the secret of his salary, it is the consistency of his remuneration in relation to his contribution and the quality of the working environment. Transparency, ironically, creates a barrier to exit: we know what we lose by leaving a healthy culture.
The meaning of history
Pay transparency is the logical extension of the quest for corporate social responsibility (CSR). We can no longer advocate inclusion and diversity while maintaining gray areas where unconscious discrimination resides.
For the entrepreneur, the choice is simple: submit to the law in a few months in “crisis management” mode, or take the lead today to make it a strong employer brand. Secrecy was a power of yesterday. Clarity is the authority of tomorrow.
And you, would you be ready to post your own salary on the company Slack tomorrow morning? It is often by answering this question that we measure our own level of comfort with the fairness we are proposing.
