I work for a state government with open salaries to the public. It causes lots of friction due to a couple of factors: 1) De-facto lifetime employment 2) No raises without a new position 3) Vastly differing levels of compensation

I make something like 50% more than the guy sitting next to me, but I manage an interdepartmental project and have a different employment category. It's hard for people to honestly evaluate themselves so it becomes a pride issue.