Wednesday, April 30, 2014
Business Insider, Here's Why Whole Foods Lets Employees Look Up Each Other's Salaries:
Have you ever wondered how much money your boss makes? If you worked at Whole Foods, you could look it up and find out.
Leaders of the supermarket chain believe in keeping employees as informed as possible, even when it comes to pay. Under the company's open policy, staff can easily look up anyone's salary or bonus from the previous year — all the way up to the CEO level.
The unusual Whole Foods policy is designed to both encourage conversations about salary among staff members and to promote competition within the company, according to The Decoded Company: Know Your Talent Better Than You Know Your Customers, a new book by entrepreneurs Leerom Segal, Aaron Goldstein, Jay Goldman, and Rahaf Harfoush on innovative management practices. Whole Foods co-CEO John Mackey introduced the policy in 1986, just six years after he co-founded the company. In the book, he explains that his initial goal was to help employees understand why some people were paid more than others. If workers understood what types of performance and achievement earned certain people more money, he figured, perhaps they would be more motivated and successful, too.
(Hat Tip: Greg McNeal.)