Nanci Meadows, the People Champion at Hubb, has a powerful litmus test for compensation:
“If a copy of everyone’s compensation was left on the printer and anyone in the company found it, how would you react?”
Or put another way:
What if everyone’s salary was accidentally emailed to the entire organization?
- Would you freeze?
- Blurt out a few choice words?
- Feel a sudden need to “explain” or “contextualize” the inequities?
If so—your compensation structure doesn’t pass the test.
We get it. Compensation for roles and individuals can be set as companies grow, and that means they can be inconsistent even if everyone's intentions are good.
If you're there, you're not alone. And there's more at risk than you might think.
Why compensation transparency matters
Compensation transparency isn’t about broadcasting numbers. It’s about trust.
When your team believes that pay is hidden or inconsistent, it becomes a breeding ground for confusion, resentment, and disengagement. It's easy to do—even the word "fair" can get complicated quickly. (More on that here.)
But true compensation transparency supports:
- A culture of fairness and accountability
- Clear communication of values
- Retention of high performers
- Alignment between contribution and reward
- Increased team confidence in leadership
In short, it’s one of the most tangible ways you build (or break) organizational trust.
So if you’re not ready to go public—yet
Good news: No one has sent out that email or left the document on the printer. You have time to take a closer look.
Start here:
- Who is paid significantly more (or less) than their colleagues?
Maybe you hired a rock star—but their performance and results haven't been any better than their colleagues'. Or maybe someone joined the team early, when the budget was smaller, and their base never got bumped up to match. - How have you given out increases?
Can you point to clear contributions, or did they go to the loudest voice? Are they on a schedule, or do you deal with them ad hoc and by demand? - Are you consistent across departments and levels (individual contributors, managers, etc.)?
If there are differences, do you have current market data (on demand, geographic location, etc.) that justify them?
It's not uncommon for compensation to be more reactive than intentional. A strong compensation structure doesn’t happen by accident. It’s designed—with intention, consistency, and character in mind.
Leadership requires pay clarity
If you're in a leadership role, your ability to confidently and clearly speak to why someone is paid is part of your credibility. (And if you lead other leaders, so is their ability to pass the compensation transparency test.)
Because at the end of the day, this isn’t just about compensation transparency—it’s about leadership alignment and organizational trust.
Want some help?
Or check out chapter 14 of Culture Works – “Crack the Compensation Code.” It walks you through how to:
- Build a structure rooted in both character and contribution
- Create consistency across roles and managers
- Avoid entitlement and raise roulette
- Sleep well knowing you’ve built a culture of clarity and fairness
