Aarhus company has broken with tradition and introduced full salary transparency

Adam Feil
February 13, 2024

Adam Feil

@Adam

This post is also available in: Danish

Most of us can probably recognize the pressure that hits you before you have to talk to your employer about salary. The taboo is alive and well, which can cause you to argue with yourself about whether you should be paid more, wondering what others with the same experience earn. It can be hard to place yourself, which makes sense when we’re not very good at talking about it.

In Aarhus, they have tried to overcome this because the hypothesis is that it will ultimately increase employee satisfaction and attract the best talent.

Avoid the feeling of being taken for a ride

Refyne partner Jens Lystlund Madsen is open about his own salary. The reason for this can be found in his previous job in particular.

He says that he earned 20,000 kroner less per month than his former colleague, even though they had the same position. It made him feel like he was being played for a fool, which is why Refyne focuses on transparency and trust; despite the fact that it can cost the business money.

“Just because you have the same title, it’s not always the same contribution, and that’s of course debatable. But I don’t think he should get 20,000 kroner more than me,” Jens Lystlund Madsen tells Tv2 Østjylland.

Refyne’s approach may help break down the taboo of talking openly about how much you earn, and it may prove to be a good strategy if you want to attract young talent. It’s the youngest people in the labor market, those between the ages of 18 and 34, who are the most vocal about pay.

Fact box: Population survey on salary

Analysis Denmark’s survey from 2023 is based on 980 working Danes:

45 percent don’t talk about salary at all.
54% talk to their colleagues about salary to some extent.
It’s the youngest workers between the ages of 18 and 34 who are the most talkative when it comes to salary.
For 18-34 year olds, around 7 out of 10 share their salary information with colleagues.
For 50-70 year olds, 41% share their salary with colleagues.
7 percent work in a workplace where there are even rules that prohibit employees from talking about salary, which is in violation of the Equal Pay Act.

Source: Population survey conducted by Analyse Danmark for IDA (Ingeniør-Sammenslutningen og Dansk Ingeniørforening)