[sstone]

Making salary information available is but one, small step towards greater employee satisfaction. If it is the only step - this can be disastrous. You essentially get the problems described in the article.

The company needs to give much more information than just the current salaries that got set by who knows what way.

First, the company needs to make available what the company is making - this is usually available but in some big numbers like earnings per quarter. If you are working on some product you need to know how much it sold and how much is likely to get sold in the next 6 months. You need to at least be able to know how much the company can afford in the end when all salaries together with all the other costs are added together to still be profitable.

Then you need to know the median salary for your job at other companies. These statistics are usually available - and if not can be found from recruiters.

Finally, you need to think about what is fair in your mind - how much does your husband make, how much does the neighbor make, your friends - compared to what they do? This is something you know and the company does not know about - but it does factor into how happy you are with your salary.

Armed with all this you are ready to set your own salary. This then can be seen by all others and a proper discussion can be done. Discussing things with all this in the open is at least possible. Everyone can participate and after a few months everyone will be armed with additional historical information about Joe the Slacker or Jane The SuperStar and if their salary is fair. If someone really thinks they deserve a huge salary regardless - they can always go someplace else if the majority of her colleagues disagree and get her fired.