They say that in business you must always be transparent but sometimes that doesn’t work out. There are some aspects that entrepreneurs really worry about when it comes to transparency such as payroll and this is because secrecy could get compromised.
There are two main challenges to salary transparency due to which many businesses hesitate treading that way. The first challenge is that the employees start worrying about salaries. Being open could actually scare employees especially when they hear about the problems you face with a few clients. Another, bigger challenge is secrecy. How can you maintain secrecy when you are open about it? If you say something about a big deal and the money you are expecting to an employee and he repeats it to someone else working for another company, the news will pass along, and your clients might get to know that the deal has become public. As a result you will outrage your client. It has not been unheard of, of clients breaking deals and walking away because of breach of secrecy.
If you think transparency is this regard is still great and if you want to go with it, the following tips will reduce the risk:
Use A Range
Being transparent does not require you to tell exactly what you are paying. You can just be open about the range of salaries you offer. This will make employees more confident and motivated. Exact figures may demotivate a few employees because they may feel that they deserve more than someone else or that they are being paid less when compared to someone else who is at a similar job position.
Brace Yourself
If you have taken the step for transparency with salaries you should accept the fact that people might critique you. They may comment on your payment system and say you are paying too less or may be paying more. However, unless you are really being unfair, you don’t need to worry about these comments. People will always have something to say and you can’t help it. The best you can do is to ignore it and continue with your financial plan. Make it a rule in the workplace that even though you are transparent, letting slip insider details will not be forgiven.
Remember that being transparent requires a lot of work in the long run. It is something that you should regularly check upon and be sure about. It also requires you to communicate properly, explain clearly, understand feelings, and manage comments at the same time.
Entrepreneurial Learning
It is good to be transparent about your business but transparency is easier said than implemented. If you plan on being open about your salaries as well, you should be structured and strong so that you come up with a plan for the same and maintain your secrecy at the same time.
