When (and When Not) to Discuss Salary At Work

Have you ever been told by your boss that you are not permitted to discuss your paycheck at work? If so, they were most likely breaking the law.

In most cases, for example, in the United States, the National Labor Relations Act of 1935 protects the right to discuss your salary with coworkers. Section 7 of the act, in particular, protects employees' rights to engage in "...collective bargaining or other mutual aid or protection."

Even so, just because you are permitted to do something does not mean you should. The question remains: Is it in your best interest to discuss money at work? Learn when it is (and when it is not) reasonable to do so.

 

When Should You Discuss Salary at Work?

If any of the following apply to you, it may be worthwhile to appear more open about your remuneration.

 

When You Need More Cash

Many employees are uncomfortable with salary discussions. According to a salary study conducted by job hunt and careers company Zippia, even though only 45% of employees feel adequately compensated, 50% are uncomfortable discussing paychecks in the workplace. Furthermore, those open to discussing their pay with coworkers are more likely to expect a significant raise.

Of course, it's difficult to say which came first: the ability to discuss salary or the certainty that the upcoming raise will be substantial.

There may be advantages to publicly discussing salary in the workplace, as these discussions can reveal if you're being grossly underpaid and, as a result, help you negotiate a higher wage.

 

When It Comes to Pay Equity

According to PayScale, a remuneration data and software provider, women still earn only 80 cents for each ringgit in Malaysia made by men. Even the governed gender pay gap, which compares only the salaries of men and women with comparable job roles, experience, and education, is 98 cents on the dollar. PayScale data, on the other hand, shows that when companies implement transparent pay practices, the gender pay gap in their organisation disappears.

"Pay transparency" can mean various things, from undertaking pay audits to ensure pay equity among employees of different genders and races to being completely open about everyone's salary at the organisation, from the CEO on down.

 

When You Have the Ability to Influence Culture

If you are a company decision-maker, you can do more than discuss pay with your coworkers. You can advocate for greater transparency regarding salary, benefits, and other forms of compensation.

In addition to implementing more transparent pay practices, your organisation may consider conducting pay audits to ensure that employees are paid fairly.

 

When Should You Keep Salary Information Private?

There are times when you should keep your cards tight to your vest. Consider if any of the following situations apply before making a decision.

 

When You Can't See the Entire Picture

Managers who advise employees not to discuss salary with coworkers may be doing so to avoid employee tension and hurt feelings. Aside from legal issues, this concern has some relevance, but not necessarily because employees with equal qualifications, skills, and experience should be paid vastly differently. They most certainly should not.

The problem with spreading salary information to coworkers is that you rarely get a complete picture. For example, your coworker may earn more than you do due to bias or poor company policy, or they may make more because they have a certification that you do not, or they have more expertise in another area that enhances their skill set. Getting all the information you need in a casual conversation is difficult.

Back up any anecdotal data, you receive with much more general research on appropriate incomes in your field. Salary surveys and tools from companies such as Glassdoor, PayScale, Indeed, and others can assist you in determining an appropriate salary range for your position and goals.

 

When Asked About Your Salary History

Salary history bans have been enacted in several states, such as California to New Jersey, prohibiting employers from questioning job applicants about their earnings at previous employers but not in Malaysia yet.

Even if it is still legal in your state to ask for your salary history, you may want to keep the conversation away from the past. By tying salary offers to prior pay, underpaid workers find it difficult, if not impossible, to improve their financial situation. In practice, this contributes to the gender pay gap and other pay disparities based on race, ethnicity, and other factors.

You don't want to bring any of these issues up during a salary negotiation. Instead, keep the conversation focused on the task at hand.

Before your job interview, research salary information to enable you to reach appropriate compensation.

 

When Your Gut Tells You No

Regardless of what the law says about your rights or what research shows about reaching financial targets, there will be moments when you feel awkward discussing money with coworkers. Perhaps you've heard horror stories about coworkers getting into scrapes with the boss, despite whether management should be able to intervene. Maybe you're being pressured by coworkers to reveal financial information that you'd rather keep private.

It's critical to pay attention to your instincts regardless of why you're feeling uneasy. If you're worried about paying your bills, you won't be able to improve the world into a more equitable place.

 

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