Pay Transparency: Silver bullet or kryptonite

Employees may call for more transparency, but what they are really after is equity. There are increasing expectations of pay transparency from governments, employees and customers, with emerging legislation. Pay transparency is designed to combat inequity and discrimination. But the stakes are high and there is a lack of consensus over the impact. Some believe it enhances morale and performance, others that it breeds envy and discontent. Much of the thinking behind transparency rests on the notion that people are ultimately motivated by fairness, which places considerable pressure on organizations to ensure that pay is not only equitable, but proven to be equitable. In this paper we discuss the rationale behind pay transparency, the pros and cons, and the implementation challenges, including a close look at its impact in the world of professional ice hockey.