You do realize for markets to be efficient (including labor markets), it is a prerequisite that all parties have equal information. If your employer is the only one that knows what everyone is making, and you aren't allowed to discuss salary (which is at best taboo, and at worst a fireable offense at some companies), than you are at a disadvantage when you go to negotiate with them.
If the organization makes it clear to potential hires before they are hired that the company has an open salary policy then the potential hire can choose to maintain their privacy and work elsewhere that does not have an open policy. In this case it probably is not an intrusion into employee privacy.
If an organization were to do this after the fact (i.e. when there are already employees on board) then I think you are right.
Re:Why transparent salaries make sense
by aaronholbrook on Friday December 20, 2013 @07:41AM
(#6941112)
I would think that the employee would have an idea that their salary would be publicly known before taking the job.
Edit
To those "but if they tell you before". I reply: it still is. Google/Facebook tell you before that they will use your data for advertisement, some still think that's an intrusion of people's privacy anyway. However, Google/Facebook give me something in return, so I play along, but what's in it for me when a company makes my paycheck public? I just don't see the point of it. Also, once you grow over a certain size, I don't believe you can make up salaries with such rigid rules.