Pay transparency’s unintended consequences become clear

Policies aiming to illuminate pay differences, like revealing salary bands in job posts, are well-intentioned tools for closing gender gaps. But new evidence suggests transparency is backfiring in many offices.

One study found UK firms narrowed gender gaps by suppressing male wages rather than raising females. Transparency may stiffen employer resistance in negotiations too.

More formal, rigid pay structures are likely as companies justify gaps. But categorizing jobs and measuring performance objectively won't be straightforward, especially in white-collar roles. Managers face tough talks with disgruntled employees.

The road to pay equity is bumpy. While transparency shines a light on gaps, closing them without collateral damage may prove complex.