I've been working for 7 years now and I've never worked in something that required secrecy. Confidentiality to protect our clients, but not secrecy. I think that is the exception and not the norm. Think about a state employee. Does it matter if everyone knows why they hired a policeman? No, of course not. How many policemen work undercover - pretty few. How many staff are involved in R&D vs day to day tasks - again quite few.
I've been working for 16 years, and everywhere I've worked has required extreme secrecy. It really depends on how competitive the environment is - if you're not competing with IP or clever business processes, then fair enough (although in the cases you list, and the cases this is likely to apply, the salary bands often already fixed and public, or at least well known). I think that you are making a mistake if you think that these are exceptional cases though. Even if only some of the company is privy to confidential information or trade secrets, it makes it hard to go public with just "some" salaries.
Most large companies publish profit numbers for their larger divisions. AMD, for instance, will tell you how much it made on CPUs last year. So I don't see that as an issue.
AMD is a perfect example of the coarse resolution reporting I mentioned (private companies are even worse) - even here in a public company like AMD the information is extremely scarce. They're not giving any information about the individual CPU segments, or stats on the margins for these segments. The bits that they're giving are things that are either obligatory or already public - there is a huge wealth to knowing exactly how each CPU/GPU/APU model did, and in which segments (desktop, professional, server, mobile, etc.).
Wealth is important, agreed. I'm not saying that everybody should be paid minimum wage, I'm saying it should not matter what you are paid. If salary discussions were less taboo, then perhaps people would get over it and stop judging each other on salary. Envy sets in because people think they are inferior to those that earn more than them, and I think that goes hand in hand with all of the secrecy regarding salary. Its also why people buy things they can't afford, to appear rich.
I think that you are conflating people with insecurities, with people who want to benefit from wealth. It always matters what you are paid.
No, the company does not care whether he thinks he is paid fairly or not. The company is interested in getting the resource for the lowest price possible. If the resource will work for $1 per year, then great. The human elements of the company, say the manager, might feel some loyalty to the guy and want to reward him for his efforts. But the manager is not there to only look out for his employees, he is there to look out for the interests of the company in general, which means he needs to balance how much he spends on salaries with ensuring that the company has the resources it needs to function. Remember that the manager and the employee will have different ideas of what constitutes fair payment, and if they can't agree, then the employee will most likely reason.
Of course the company cares whether he thinks he is paid fairly or not. If they want to retain him, they need to make sure that he thinks he is paid fairly. How much they want to retain him is something that companies will put a number to. A well run company will set the right number, and a poorly run company won't. The right number doesn't mean he will stay.
To say that a well run company will mean that the manager and employee have the same idea of what is fair is wrong. A well run company profitably fulfils its objectives with the resources at its disposal. Lets face it - sometimes you will get employees with realistic ideas of what their salary should be, and in those instances, nothing can be done.
Who's saying things like that? I said the opposite.
But even in the more common case that the employee is actually being realistic, his salary at his old company will still lag behind what he is worth. I could find you 100 posts on this forum about exactly that, about guys getting 50% raises at new companies. If you claim that this only happens to badly run companies, then at least 80% of companies are badly run. And remember what I said about what the goal of the company is - to get the resource for the lowest price. Why pay more? So it is natural that these gaps in salary expectations and reality should appear, which is why employees generally get a raise when they move. How many people do not get raises when they move? Do you know of anyone? I don't. I've never met a single person who did not get a raise when they moved. If this only happens to badly run companies, then every single person I have ever known who has ever changed jobs, was working for a badly run company at the time. If they were not, then they would already be paid at the market rate for their skills, and a raise would be impossible.
Dude. More reading, and less writing... I never made any such claims. I claimed that good companies pay people what they are worth
to them, factoring in how much they want to retain the employee and pitting that against the market demand. People are initially paid more when they move companies because A) they're compensated for the risk and effort of moving. B) they need a higher expected income in order to justify the move, and C) the hiring company may need their particular skill set badly. There is also D) when your company is taking liberties.
If a good company (no (D)) wants to retain an employee, it has to counter the market pressure, such that the employee is priced out of the market ( (A)+(B)+(C) is to high for another company to pay) - it's simple market mechanics. The more the company pays, the more surety they have.
Also, the fact that another company is willing to give you more money to move isn't necessarily a sign that you are currently underpaid: A small increase (like the 20% you mentioned in your first post that you thought was unfair) is simply compensation for risk, and motivation to move. If the person was equally qualified and at another company, then all things being equal, that person would be earning the same salary as you, and would need to be paid more just to move, so a 20% increase is a perfectly sane thing for the company to do - otherwise they would only be able to hire people from below average paying companies. If you complain that the company is paying equally qualified new hires more, and should raise your salary to match, then you are effectively arguing for your company to pay its employees 20% above the average - clearly not something mathematically sustainable across the industry.
As for people talking about 50+% increases, these are more likely either people who were at poorly managed companies, or they were simply doing the wrong job. There is huge selection bias in those "100 posts" - these people are the most vocal about their situation - not too many people are bragging how they moved companies for 5%.
So no, I do not propose salary transparency to fix only the bad companies. Salary transparency would simply even the playing field for employees.
Yes, it would even the playing field for employees. It would also distract the hell out of everybody as they bicker for consensus and keenly watch one another to see if they can make a case for a earning more, make management a total nightmare, push salaries to unsustainable levels or cause some salaries to be reduced (that always goes well), and require that confidential information be shared in order to justify higher than expected salaries.
Tragedy of the commons.