If you've ever wondered how much your boss or co-workers make, you would know if you worked at Whole Foods. While most companies keep salary information confidential, the Austin, Texas–based grocery chain has an open-salary policy whereby employees are actually encouraged to look up salaries and bonuses of coworkers as well as the CEO's compensation. For this grocer well known for its high-end organic selections, the benefits of an opensalary policy far outweigh keeping salaries a secret.

Whole Foods Co-CEO John Mackey is a firm believer in an opensalary policy as part of the company's “we're all in this together” culture of full transparency and no secrets. Mackey wants any and all information about Whole Foods accessible and available to company employees. In addition to sharing salary data, managers are required to post detailed financial, sales, and profitability reports by individual store locations as part of the shared culture.

One effect of the open-salary policy at Whole Foods is a highly motivated workforce that places value on productivity and community, which outweighs any benefit of keeping salaries and profit margins confidential. Whole Foods believes that sharing salary data can motivate employees to excel and work harder to get to the next earnings level.

Mackey admits that he is constantly challenged with questions about salary levels and fairness and believes that sharing information about salaries provides each employee a road map to success. Mackey uses salary information to bring to light the type of performance and achievement necessary to reach each level within the organization.

With this information, employees can be inspired, knowing that they too can reach the next level. Mackey believes that there should be no secrets when creating a high-trust organization where people are all-for-one and one-for-all—which includes openness about salaries to reduce gender pay inequities.

Questions for Critical Thinking 

1. Mackey believes that, if employees have a clear understanding of the path required to be as successful as the “next person,” they will be inspired in part to become that “next person.” Do you agree? Why or why not?

2. What are some disadvantages of a company sharing salary and profitability data with all of its employees?