Having a transparent formula for salary limits or removes the effects of negotiation, which likely benefits engineers (typically bad at negotiating compared to e.g. sales people) and women/minorities (worried about increasing "otherness" further and sometimes lower leverage, at least in tech).
There are potential downsides such as increased politics or income inequality pressures, but it seems like a viable policy at least. I'm curious how someone like Google's Laszlo Bock would respond to this approach in comparison to their "pay unfairly"[1] mentality.
There are potential downsides such as increased politics or income inequality pressures, but it seems like a viable policy at least. I'm curious how someone like Google's Laszlo Bock would respond to this approach in comparison to their "pay unfairly"[1] mentality.
[1] http://www.businessinsider.com/google-policy-to-pay-unfairly...