Talking pay could be helpful

1:21pm Monday 9th June 2008

Most workers would be happy to reveal their salaries to colleagues, believing the move would help tackle the gender pay gap, according to new research.

A survey of 1,000 employees by recruitment consultancy Hudson showed that almost two out of three would be comfortable talking about their pay.

A similar number believed that senior managers should be forced to disclose their salary, adding that transparency over pay would help reduce the gender wage gap.

Workers in Scotland were most likely to believe that pay transparency would help women, while those in the West Midlands were the most relaxed about revealing their earnings.

Londoners were the least prepared to talk to colleagues about how much money they earned.

Andy Rogerson, chief executive of Hudson UK, said: "British employees are ready to break one of the biggest taboos in the workplace - revealing salaries - in order to ensure true equality of pay.

"The gender pay gap persists, and businesses that neglect to address it are risking alienating half their workforce.

"Those that promote equality and back this up with visible action will prosper - particularly in an economic climate where retention of the right talent will become more business-critical.

"A policy of salary disclosure at all levels is not likely to be appropriate at many organisations, clearly, but the underlying principle, of ensuring fairness and transparency in the process of setting and reviewing salaries, is a good one."

Being open about pay rates could help retain staff because it would promote a culture openness and fairness, said the report.

Unions have been campaigning for years for mandatory pay audits in firms to make sure women are now being paid less than men.

Karen Cole, an official of the Unite union, said in some organisations it could be a disciplinary offence to discuss pay which was a totally unacceptable' way to treat workers.

"It is vital that we close the gender pay gap which is the cause of poverty for women in this country.

"Employers are getting away with discriminating against women at work because of secrecy and lack of transparency over pay."

And TUC general secretary Brendan Barber said: "The secrecy surrounding pay is a key cause of the gender pay gap, particularly in the private sector.

"Despite the enthusiasm of employers in this survey, the vast majority still refuse to disclose their pay scales. The only way to stamp this out is through mandatory pay audits."