For most companies we worked with, we were always told that salaries and remunerations are confidential information and should not be shared with other employees in the company. The main reason for this is probably to refrain colleagues from comparing and resenting another's employees salary, especially if one's productivity is lower but receives a higher pay.

One recent Social Entrepreneur start-up company based in San-Fransisco - "Buffer" - has surprised everyone by being a company that publishes a transparent formula for all of its employees. But just how much measurable and effective is it?

If you see from the formula, the only subjective element is probably the "Experience" factor, which to me is probably the most important factor but surprisingly has one of the least multiplier. So take for instance, a fresh-grad who has a "Junior" level of experience earning a 1x multiplier versus a mid-level candidate with an "Intermediate" (Read more...)