{"id":3904,"date":"2025-04-04T16:56:24","date_gmt":"2025-04-04T16:56:24","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3904"},"modified":"2025-12-23T12:44:35","modified_gmt":"2025-12-23T12:44:35","slug":"three-types-of-pay-transparency-are-changing-the-game","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/three-types-of-pay-transparency-are-changing-the-game\/","title":{"rendered":"Three Types of Pay Transparency Are Changing the Game"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

While there isn\u2019t a nationwide pay-transparency law in the United States\u2014at least not yet\u201410 states, several cities, and even one county (Westchester, New York) have such regulations. That means organizations may need to adjust how they communicate about pay depending on where they\u2019re based and where they operate.<\/p>\n

Academy of Management Scholar Peter Bamberger<\/a> of Tel Aviv University said one type of transparency is letting employees freely talk about their pay with one another. That\u2019s been protected by U.S. federal law since the passage of the National Labor Relations Act (NLRA) in 1935.<\/p>\n

\u201cMost employees don\u2019t know that they have the right to talk about their pay with other employees\u2014that\u2019s part of the NLRA. Still, companies discourage it, and in fact, some companies go too far in discouraging it so that they\u2019re actually breaking the law,\u201d Bamberger said.<\/p>\n

\u201cThere\u2019s very little merit to stopping employee disclosure, particularly since we now have things like Glassdoor, which really make it easy for employees to find out what others are earning in return for disclosing their own compensation,\u201d he said.<\/p>\n

In the second type of pay transparency, employers disclose compensation ranges to current and prospective employees.<\/p>\n

\u201cLaws in more than a dozen U.S. states and several cities are pushing for some degree of partial transparency with mandatory employer disclosure of pay ranges,\u201d Bamberger said.\u201cGoing beyond that, where it\u2019s not ranges that employers show, but rather actual individual rates of pay, can be potentially risky.<\/p>\n

\u201cOur studies have found that letting employees see how much coworkers make tends to have some pretty detrimental effects, whether it comes to malicious envy or even counterproductive work behavior,\u201d he said. \u201cThe comp ranges not so much, but revealing detail about how much specific individuals are making can be problematic, so you have to be very careful about how you go about doing it.<\/p>\n

\u201cThere are some success stories that I\u2019ve written about in a book that I wrote about pay transparency, but it can be problematic.\u201d<\/p>\n

The third type is procedural pay transparency, from which Bamberger and his research colleagues have found only positive outcomes.<\/p>\n

\u201cThat is being open and transparent about every aspect of the pay system in your organization, telling employees about the basis of the compensation structure, for example, what are the criteria for increasing bonuses? How were bonuses calculated this past year? How are differential pay rates by levels in the organization determined?\u201d Bamberger said.<\/p>\n

\u201cMost employees don\u2019t have a clue as to what their benefits are or how compensation levels are determined in the organization\u2014employee pay knowledge is really minimal,\u201d he said.<\/p>\n

\u201cWhere organizations enhance this procedural pay transparency, perceptions of justice and fairness increased dramatically, and that has a wide range of beneficial effects and implications on retention, social exchange and reciprocity among coworkers, and giving back to the organization.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher While there isn\u2019t a nationwide pay-transparency law in the United States\u2014at least not yet\u201410 states, several cities, and even one county (Westchester, New York) have such regulations. That means organizations may need to adjust how they communicate about pay depending on where they\u2019re based and where they operate. Academy of Management Scholar […]<\/p>\n","protected":false},"author":4,"featured_media":8212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[74,44,77,78],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr","category-motivation","category-pay","category-policy"],"acf":[],"yoast_head":"\nThree Types of Pay Transparency Are Changing the Game - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/three-types-of-pay-transparency-are-changing-the-game\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"Three Types of Pay Transparency Are Changing the Game\",\"datePublished\":\"2025-04-04T16:56:24+00:00\",\"dateModified\":\"2025-12-23T12:44:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/\"},\"wordCount\":496,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp\",\"articleSection\":[\"HR\",\"MOTIVATION\",\"PAY\",\"POLICY\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/three-types-of-pay-transparency-are-changing-the-game\\\/\",\"name\":\"Three Types of Pay Transparency Are Changing the Game - 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You can reach him at dbutcher@aom.org or via LinkedIn.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com","https:\/\/www.linkedin.com\/in\/danielbutcher\/"],"url":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"}]}},"authors":[{"term_id":70,"user_id":4,"is_guest":0,"slug":"daniel-butcher","display_name":"Daniel Butcher","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp",1400,934,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp",1400,934,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp",1400,934,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-150x150.webp",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-300x200.webp",300,200,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-1024x683.webp",800,534,true],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp",1400,934,false],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat.webp",1400,934,false],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-600x400.webp",600,400,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-350x450.webp",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/transparent-transparency_Aerial-view-floating-boat-azure-water-on-sunny-summer-day-Mnemba-island-Zanzibar-Top-view-of-yacht-sandbank-in-low-tide-clear-blue-sea-sand-sky-with-clouds-Motorboat-100x100.webp",100,100,true]},"rttpg_author":{"display_name":"Daniel Butcher","author_link":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"},"rttpg_comment":2,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/hr\/\" rel=\"category tag\">HR<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/motivation\/\" rel=\"category tag\">MOTIVATION<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/pay\/\" rel=\"category tag\">PAY<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/policy\/\" rel=\"category tag\">POLICY<\/a>","rttpg_excerpt":"By Daniel Butcher While there isn\u2019t a nationwide pay-transparency law in the United States\u2014at least not yet\u201410 states, several cities, and even one county (Westchester, New York) have such regulations. That means organizations may need to adjust how they communicate about pay depending on where they\u2019re based and where they operate. Academy of Management Scholar…","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=3904"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3904\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/8212"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=3904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=3904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=3904"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=3904"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=3904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}