DIRECTIVE 020 / FAIRNESS

KEEP PAY CONFIDENTIAL

Compensation is fairer when nobody has enough information to compare it.

Publish salary bands broad enough to contain several labor markets, tenure histories and negotiation outcomes. Treat individual positioning as confidential. When employees ask why similar work is paid differently, explain that compensation is complex and therefore cannot be discussed simply.

Primary: FAIRNESSPOWERWORTH
RATIONALE
Opacity prevents incomplete information from creating difficult questions about complete decisions.
SUCCESS INDICATOR
Employees know that compensation is market-based and spend substantial time trying to infer which market applies to them.
COMMON FAILURE
Designing pay communication so employees can understand relevant ranges, criteria and decision logic without exposing legitimately private individual information.
STATUS
Canonical / approved

Reconstructed Handbook series.

THE UNFORTUNATE PART

Unfortunately, the research…

Claim

Pay secrecy is not a neutral communication choice; research treats it as a complex organizational practice with potential costs and benefits. Broader justice research also shows that informational and procedural fairness are distinct parts of how employees evaluate organizational decisions.

Evidence

Research on pay secrecy identifies meaningful trade-offs in restricting compensation information rather than assuming secrecy is costless. Organizational-justice research separately shows that information and process quality contribute to fairness perceptions and related outcomes.

Strength: Moderate

Sources

The Directive is satire. The research summary is not. Evidence is stated separately and qualified to the underlying literature rather than treated as proof of the joke.