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.