Whole Foods: Salaries Exposed

MSN Money reports Whole Foods has been exposing its employees’ salaries since 1986, when co-CEO John Mackey introduced the open policy. Once a month, Whole Foods collects financial data from each of the chain’s locations. Leaders in this industry believe it is important for its employees to see how much money others in the company are making, to motivate them on what it takes to reach a certain dollar amount. There have been some disputes within the company about certain parties making more money, but Mackey explains how people are paid based on their performance and level of value. He believes this approach creates a high trust organization and causes employees to become increasingly invested in the company.

When transparency increases in a company, it reduces the amount of decision-making and bias required to fill positions and salaries. It results in alignment of expertise. The right people are placed in a position that they are capable of and are compensated accurately based on their performance. Like Whole Foods, when companies use alignment instead of management, direction, and control, people are self-motivated and productivity increases.

Source

http://money.msn.com/top-stocks/whole-foods-lets-workers-see-everyones-salaries

Comments (5)

David Brown

February 21, 2015

In this article we learn that Whole Foods has implemented transparency in regards to the salaries of its employees and also that the chain has deviated from Management, Direction, and Control as a means of motivating its workers.
Transparency, an IMT concept, in this case allowed the workers to see the salaries of those that provide a greater value, motivating them to seek to also provide greater value to the company. It also allowed for the alignment of expertise into positions were the workers can earn more.
The IMT concept of eliminating Management, Direction, and Control from the work place caused an increase in production because the workers then became self-motivated.
Camille Armendariz

April 23, 2014

This kind of transparency in a company is essential for success. I believe that it creates a more open, honest, and efficient environment. People are more likely to work harder to achieve a certain salary and obtain a certain position and are more likely to have respect for the higher-ups in the business because they are being honest with them. This system is removing decision making from the equation which increases the productivity of the company because the employees are not blind to what is going on around them.
Haitham

April 11, 2014

In my opinion I think the way they do of exposing the employees salary can motivate the new employees to work hard and smarter to get to the position they want to get the salary that was exposed. This way is going to grow the company in the future.
Hossein Vashani

April 7, 2014

The company is moving in a true way because they are removing decision making, control, and direction. The system would be more transparent and there would be more honesty in the environment. Workers will perceive more information. They will not be blind any more because they know work conditions. In this new system, as the workers know more dominant information so they will not be lazy anymore. When the salary is based on workers’ performance, they will try to earn as much as money they can. Now, they are self-motivated to work better and no one is required for motivating them to not escape from working.
Teja Reddy

March 30, 2014

That’s very true when transparency increases in a organisation, then there will be less decision making, managing, direction and control. This step by whole foods really creates transparency in its system, so workers will know the reasons behind the pay to each person, which in turn motivates them to work harder. Also paying salary based on performance is a good move by Whole Foods.

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