The problem with pay transparency starts with the problem of determining compensation itself. If compensation could be a direct output of an algorithm that was highly accurate based on attributes of an individual that highly predict their market worth, pay transparency works well because people could agree that this person is being paid fairly. Also, if everyones pay could be dynamically determined it would help too. Basically, people get hired and get their salary set. Then new people are being recruited and market dynamics may have changed and now maybe a higher salary is required to attract this candidate.
I'm not being very articulate here, but i'd say the problem with pay transparency isn't the transparency part, but the actual process of determining fair/market-clearing wages for employees.
I'm not being very articulate here, but i'd say the problem with pay transparency isn't the transparency part, but the actual process of determining fair/market-clearing wages for employees.