Do you think it's good or bad for startups to publicize employee salaries?

TL;DR; Yes it's bad, without understanding context.

Doing this, or any other organization rule needs to be considered based on the culture of the company and the goals. It's dangerous to take this one action out of context as to Buffer's purpose in building their organization.

Is it good? For some, that haven't been doing it from day 1 - I'm going to say no. My experience shows that most companies don't have a strict pay scale, and many would get upset by this.

Also, it's a personal thing - maybe your team don't want this. We do this internally at Clarity (everyone on the team knows what everyone else makes) but we don't publish this to the world.

I do agree that transparency helps teams focus on whats important, and can get ride of political issues, but it can also introduce other issues if it's not part of a bigger vision.

It's like assuming if you wear black turtle necks, blue jeans and new balance shoes like Steve Jobs, that you'll be a better designer. That's not how it works.

my2cents

I don't think it matters either way.

Put a number out there and it will attract some and repel others.

Some people will be comfortable working for a startup; others will be afraid of it. More than salary, that will limit who applies.

I have managed startups as well as mature companies. I personally have never been part of a business that has publicized salaries, except as required by law in the context of securities regulation. Publicizing salaries might serve the personal interests of certain kinds of founders-those who want to appear benign and generous in the case of high salaries, or those who want to appear mean and all-powerful in the case of low salaries. There does not appear to be any legitimate business purpose served or advantage gained by doing so however.

The salary part is for HR department but there must be a clear mission on why you are making the salaries public.
Many tech workers, especially engineers, find salary negotiations stressful. In past start-ups, he had sometimes been desperate to get an app finished and paid way too much to get workers on board quickly. Salary transparency is the single best protection against gender bias, racial bias, or orientation bias». That is why some states now require that government contractors report gender gaps in how they pay their employees. Although many governments make workers’ salary information available, fully transparent private-sector companies still are rare enough to garner headlines. A big challenge of implementing pay transparency is having to explain differences among salaries to head off perceptions of unfairness. As much as every company might want to be a model of consistency and equality, the reality is that people’s salaries can vary widely, and for reasons that may be difficult to explain. In addition, pay transparency does not always give the whole story.
You can read more here: https://www.shrm.org/hr-today/news/hr-magazine/pages/0914-salary-transparency.aspx
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath

Publishing employee salaries, as Buffer did, can have both positive and negative impacts on a startup. Here are some considerations:

### Pros

1. **Transparency and Trust**
- Builds trust within the organization by fostering a culture of openness.
- Helps ensure fairness in compensation and can reduce perceptions of favoritism or bias.

2. **Employee Satisfaction**
- Employees may feel more valued and respected, leading to higher morale and job satisfaction.
- Promotes a sense of equality and fairness among employees.

3. **Attracting Talent**
- Can attract candidates who value transparency and a fair workplace.
- Demonstrates the company’s commitment to ethical practices, which can be appealing to top talent.

4. **Market Positioning**
- Can differentiate the startup in a competitive market, showing it as a progressive and forward-thinking company.

### Cons

1. **Privacy Concerns**
- Some employees may feel uncomfortable with their salaries being public.
- Can lead to privacy issues and potential backlash from employees who value confidentiality.

2. **Internal Tension**
- May create tension or dissatisfaction if disparities in pay are revealed, even if they are justified.
- Could lead to demands for pay adjustments, which may not be financially feasible for the startup.

3. **Competitive Disadvantages**
- Competitors could use this information to poach employees by offering slightly higher salaries.
- Can reveal strategic information about the company’s financial priorities and constraints.

4. **Administrative Burden**
- Managing and justifying salary transparency can be time-consuming and require additional resources.

### Conclusion

Whether it is good or bad for a startup to publicize employee salaries depends on the company's culture, values, and specific circumstances. For startups that prioritize transparency and have a strong rationale for their compensation structure, publishing salaries can reinforce their brand and attract like-minded talent. However, for others, the potential drawbacks in terms of privacy, internal tension, and competitive risks might outweigh the benefits.

Ultimately, it is a strategic decision that requires careful consideration of the company's goals, culture, and the potential impact on employees and operations.