Why People Keep Salary Secret?

It is one of the golden rules of almost all organizations that they keep the salaries of their employees secret. A lot of official rules changed with the time, like people dress up casually in office, call their boss with names, keep flexible schedule for work etc. but the rule that remained unchanged and firm is not sharing the salary secret.

It is point to consider why people keep their salaries secret?


There may be a lot of things attached with the salary secrets which your employer will never want to make you reveal. There may be several of the following reasons:

  • For the employer, people matter not the salary packages offered to them. A person as an accountant may not be of much worth for an employer with less salary, but the same person with some other position may of greater value to the other employer. So the salaries may vary people to people which depend upon the worth of that employee.
  • Sometimes the long-time worker would be getting less than a new worker. Employers want to keep the salaries secret as they don’t want to disappoint the old experienced employees but also don’t ant to discourage the fresh talented workers. It keeps the environment smooth among them.
  • Salaries do not always depend upon your technical skills and capabilities, but it includes much more than that. An impressive personality with effective communication and listening habit, excellent moral standards and characteristics, and a professional and business attitude also make place of an employee with higher salary.
  • Employers don’t always offer the fair salary to the new employee and keep inspiring them to work harder. This is the secret trick to get more productive response from the new workers which the employer never want you them to reveal.

Though the employers keep this strategy to maintain the balance among their workers but it does not always remain secret. People know it by talking to each other. There are some drawbacks of this strategy.


It reduces the transparency and in some cases it discourages the new workers to make progressive efforts. When they know that their performance is not deciding their salary, it makes their spirits down.

Secrecy is not the bad policy but if the employers provide the transparent salary strategy within organization, it will be of more worth in making the environment of competition. People getting higher salaries will be pressurized to make efforts to retain their earning and the people getting lower salaries will make more struggles to reach the targets to get more. If the salaries are made transparent, it will make the salaries fair and the organization will get chances to adjust it to significant levels. It will also reduce the frequency of changing careers which is becoming common due to less salary reasons.

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