[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.18,0:00:02.59,Default,,0000,0000,0000,,How much do you get paid?
Dialogue: 0,0:00:03.16,0:00:05.04,Default,,0000,0000,0000,,Don't answer that out loud.
Dialogue: 0,0:00:05.67,0:00:07.45,Default,,0000,0000,0000,,But put a number in your head.
Dialogue: 0,0:00:08.02,0:00:12.66,Default,,0000,0000,0000,,Now: How much do you think the person\Nsitting next to you gets paid?
Dialogue: 0,0:00:13.18,0:00:15.34,Default,,0000,0000,0000,,Again, don't answer out loud.
Dialogue: 0,0:00:15.36,0:00:16.46,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:17.14,0:00:19.50,Default,,0000,0000,0000,,At work, how much do you think
Dialogue: 0,0:00:19.53,0:00:23.46,Default,,0000,0000,0000,,the person sitting in the cubicle\Nor the desk next to you gets paid?
Dialogue: 0,0:00:23.49,0:00:24.64,Default,,0000,0000,0000,,Do you know?
Dialogue: 0,0:00:24.98,0:00:26.34,Default,,0000,0000,0000,,Should you know?
Dialogue: 0,0:00:26.96,0:00:30.94,Default,,0000,0000,0000,,Notice, it's a little uncomfortable for me\Nto even ask you those questions.
Dialogue: 0,0:00:30.96,0:00:34.11,Default,,0000,0000,0000,,But admit it -- you kind of want to know.
Dialogue: 0,0:00:34.99,0:00:38.52,Default,,0000,0000,0000,,Most of us are uncomfortable with the idea\Nof broadcasting our salary.
Dialogue: 0,0:00:38.54,0:00:40.69,Default,,0000,0000,0000,,We're not supposed to tell our neighbors,
Dialogue: 0,0:00:40.72,0:00:43.91,Default,,0000,0000,0000,,and we're definitely not supposed\Nto tell our office neighbors.
Dialogue: 0,0:00:43.93,0:00:47.44,Default,,0000,0000,0000,,The assumed reason is that if everybody\Nknew what everybody got paid,
Dialogue: 0,0:00:47.47,0:00:49.26,Default,,0000,0000,0000,,then all hell would break loose.
Dialogue: 0,0:00:49.28,0:00:51.38,Default,,0000,0000,0000,,There'd be arguments, there'd be fights,
Dialogue: 0,0:00:51.41,0:00:53.60,Default,,0000,0000,0000,,there might even be a few people who quit.
Dialogue: 0,0:00:53.62,0:00:57.40,Default,,0000,0000,0000,,But what if secrecy is actually\Nthe reason for all that strife?
Dialogue: 0,0:00:57.42,0:01:00.04,Default,,0000,0000,0000,,And what would happen\Nif we removed that secrecy?
Dialogue: 0,0:01:00.60,0:01:04.59,Default,,0000,0000,0000,,What if openness actually increased\Nthe sense of fairness and collaboration
Dialogue: 0,0:01:04.61,0:01:05.84,Default,,0000,0000,0000,,inside a company?
Dialogue: 0,0:01:05.86,0:01:09.45,Default,,0000,0000,0000,,What would happen if we had\Ntotal pay transparency?
Dialogue: 0,0:01:10.25,0:01:11.57,Default,,0000,0000,0000,,For the past several years,
Dialogue: 0,0:01:11.60,0:01:14.51,Default,,0000,0000,0000,,I've been studying the corporate\Nand entrepreneurial leaders
Dialogue: 0,0:01:14.53,0:01:18.08,Default,,0000,0000,0000,,who question the conventional wisdom\Nabout how to run a company.
Dialogue: 0,0:01:18.10,0:01:20.56,Default,,0000,0000,0000,,And the question of pay keeps coming up.
Dialogue: 0,0:01:21.10,0:01:23.56,Default,,0000,0000,0000,,And the answers keep surprising.
Dialogue: 0,0:01:24.46,0:01:26.26,Default,,0000,0000,0000,,It turns out that pay transparency --
Dialogue: 0,0:01:26.29,0:01:28.40,Default,,0000,0000,0000,,sharing salaries openly\Nacross a company --
Dialogue: 0,0:01:28.42,0:01:31.07,Default,,0000,0000,0000,,makes for a better workplace\Nfor both the employee
Dialogue: 0,0:01:31.10,0:01:32.68,Default,,0000,0000,0000,,and for the organization.
Dialogue: 0,0:01:33.36,0:01:36.46,Default,,0000,0000,0000,,When people don't know how their pay\Ncompares to their peers',
Dialogue: 0,0:01:36.48,0:01:38.30,Default,,0000,0000,0000,,they're more likely to feel underpaid
Dialogue: 0,0:01:38.32,0:01:40.26,Default,,0000,0000,0000,,and maybe even discriminated against.
Dialogue: 0,0:01:40.65,0:01:43.22,Default,,0000,0000,0000,,Do you want to work at a place\Nthat tolerates the idea
Dialogue: 0,0:01:43.24,0:01:46.05,Default,,0000,0000,0000,,that you feel underpaid\Nor discriminated against?
Dialogue: 0,0:01:46.70,0:01:49.21,Default,,0000,0000,0000,,But keeping salaries secret\Ndoes exactly that,
Dialogue: 0,0:01:49.23,0:01:52.11,Default,,0000,0000,0000,,and it's a practice\Nas old as it is common,
Dialogue: 0,0:01:52.67,0:01:54.77,Default,,0000,0000,0000,,despite the fact\Nthat in the United States,
Dialogue: 0,0:01:54.79,0:01:58.24,Default,,0000,0000,0000,,the law protects an employee's right\Nto discuss their pay.
Dialogue: 0,0:01:59.42,0:02:01.98,Default,,0000,0000,0000,,In one famous example from decades ago,
Dialogue: 0,0:02:01.100,0:02:04.10,Default,,0000,0000,0000,,the management of Vanity Fair magazine
Dialogue: 0,0:02:04.13,0:02:06.25,Default,,0000,0000,0000,,actually circulated a memo entitled:
Dialogue: 0,0:02:06.27,0:02:09.48,Default,,0000,0000,0000,,"Forbidding Discussion Among\NEmployees of Salary Received."
Dialogue: 0,0:02:09.50,0:02:12.82,Default,,0000,0000,0000,,"Forbidding" discussion among\Nemployees of salary received.
Dialogue: 0,0:02:13.48,0:02:15.63,Default,,0000,0000,0000,,Now that memo didn't sit well\Nwith everybody.
Dialogue: 0,0:02:15.65,0:02:17.70,Default,,0000,0000,0000,,New York literary figures\NDorothy Parker,
Dialogue: 0,0:02:17.72,0:02:19.48,Default,,0000,0000,0000,,Robert Benchley and Robert Sherwood,
Dialogue: 0,0:02:19.51,0:02:21.95,Default,,0000,0000,0000,,all writers in the Algonquin Round Table,
Dialogue: 0,0:02:21.97,0:02:23.76,Default,,0000,0000,0000,,decided to stand up for transparency
Dialogue: 0,0:02:23.78,0:02:25.51,Default,,0000,0000,0000,,and showed up for work the next day
Dialogue: 0,0:02:25.54,0:02:28.75,Default,,0000,0000,0000,,with their salary written on signs\Nhanging from their neck.
Dialogue: 0,0:02:28.77,0:02:30.32,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:30.72,0:02:32.29,Default,,0000,0000,0000,,Imagine showing up for work
Dialogue: 0,0:02:32.32,0:02:35.80,Default,,0000,0000,0000,,with your salary just written\Nacross your chest for all to see.
Dialogue: 0,0:02:37.57,0:02:40.84,Default,,0000,0000,0000,,But why would a company even want\Nto discourage salary discussions?
Dialogue: 0,0:02:40.87,0:02:44.20,Default,,0000,0000,0000,,Why do some people go along with it,\Nwhile others revolt against it?
Dialogue: 0,0:02:45.91,0:02:48.95,Default,,0000,0000,0000,,It turns out that in addition\Nto the assumed reasons,
Dialogue: 0,0:02:48.97,0:02:52.28,Default,,0000,0000,0000,,pay secrecy is actually a way\Nto save a lot of money.
Dialogue: 0,0:02:52.30,0:02:54.21,Default,,0000,0000,0000,,You see, keeping salaries secret
Dialogue: 0,0:02:54.24,0:02:57.19,Default,,0000,0000,0000,,leads to what economists call\N"information asymmetry."
Dialogue: 0,0:02:57.21,0:02:59.48,Default,,0000,0000,0000,,This is a situation where,\Nin a negotiation,
Dialogue: 0,0:02:59.51,0:03:02.50,Default,,0000,0000,0000,,one party has loads more\Ninformation than the other.
Dialogue: 0,0:03:02.89,0:03:06.30,Default,,0000,0000,0000,,And in hiring or promotion\Nor annual raise discussions,
Dialogue: 0,0:03:06.32,0:03:09.98,Default,,0000,0000,0000,,an employer can use that secrecy\Nto save a lot of money.
Dialogue: 0,0:03:10.52,0:03:13.14,Default,,0000,0000,0000,,Imagine how much better\Nyou could negotiate for a raise
Dialogue: 0,0:03:13.17,0:03:14.97,Default,,0000,0000,0000,,if you knew everybody's salary.
Dialogue: 0,0:03:17.61,0:03:20.05,Default,,0000,0000,0000,,Economists warn that information asymmetry
Dialogue: 0,0:03:20.08,0:03:21.72,Default,,0000,0000,0000,,can cause markets to go awry.
Dialogue: 0,0:03:21.75,0:03:23.65,Default,,0000,0000,0000,,Someone leaves a pay stub on the copier,
Dialogue: 0,0:03:23.68,0:03:26.10,Default,,0000,0000,0000,,and suddenly everybody\Nis shouting at each other.
Dialogue: 0,0:03:26.87,0:03:28.57,Default,,0000,0000,0000,,In fact, they even warn
Dialogue: 0,0:03:28.60,0:03:33.41,Default,,0000,0000,0000,,that information asymmetry\Ncan lead to a total market failure.
Dialogue: 0,0:03:34.10,0:03:36.11,Default,,0000,0000,0000,,And I think we're almost there.
Dialogue: 0,0:03:36.13,0:03:37.30,Default,,0000,0000,0000,,Here's why:
Dialogue: 0,0:03:37.32,0:03:42.25,Default,,0000,0000,0000,,first, most employees have no idea\Nhow their pay compares to their peers'.
Dialogue: 0,0:03:42.83,0:03:46.68,Default,,0000,0000,0000,,In a 2015 survey of 70,000 employees,
Dialogue: 0,0:03:46.71,0:03:50.09,Default,,0000,0000,0000,,two-thirds of everyone who is paid\Nat the market rate
Dialogue: 0,0:03:50.11,0:03:52.34,Default,,0000,0000,0000,,said that they felt they were underpaid.
Dialogue: 0,0:03:53.04,0:03:55.92,Default,,0000,0000,0000,,And of everybody who felt\Nthat they were underpaid,
Dialogue: 0,0:03:55.94,0:03:58.89,Default,,0000,0000,0000,,60 percent said\Nthat they intended to quit,
Dialogue: 0,0:03:58.92,0:04:01.80,Default,,0000,0000,0000,,regardless of where they were --\Nunderpaid, overpaid
Dialogue: 0,0:04:01.83,0:04:03.41,Default,,0000,0000,0000,,or right at the market rate.
Dialogue: 0,0:04:04.20,0:04:06.66,Default,,0000,0000,0000,,If you were part of this survey,\Nwhat would you say?
Dialogue: 0,0:04:06.68,0:04:07.96,Default,,0000,0000,0000,,Are you underpaid?
Dialogue: 0,0:04:07.98,0:04:10.31,Default,,0000,0000,0000,,Well, wait -- how do you even know,
Dialogue: 0,0:04:10.33,0:04:12.47,Default,,0000,0000,0000,,because you're not allowed\Nto talk about it?
Dialogue: 0,0:04:12.91,0:04:16.51,Default,,0000,0000,0000,,Next, information asymmetry, pay secrecy,
Dialogue: 0,0:04:16.53,0:04:19.31,Default,,0000,0000,0000,,makes it easier to ignore\Nthe discrimination
Dialogue: 0,0:04:19.34,0:04:21.80,Default,,0000,0000,0000,,that's already present\Nin the market today.
Dialogue: 0,0:04:22.22,0:04:25.91,Default,,0000,0000,0000,,In a 2011 report from the Institute\Nfor Women's Policy Research,
Dialogue: 0,0:04:25.94,0:04:28.06,Default,,0000,0000,0000,,the gender wage gap\Nbetween men and women
Dialogue: 0,0:04:28.09,0:04:29.82,Default,,0000,0000,0000,,was 23 percent.
Dialogue: 0,0:04:30.45,0:04:33.07,Default,,0000,0000,0000,,This is where that 77 cents\Non the dollar comes from.
Dialogue: 0,0:04:33.64,0:04:35.10,Default,,0000,0000,0000,,But in the Federal Government,
Dialogue: 0,0:04:35.13,0:04:37.19,Default,,0000,0000,0000,,where salaries are pinned\Nto certain levels
Dialogue: 0,0:04:37.22,0:04:39.26,Default,,0000,0000,0000,,and everybody knows\Nwhat those levels are,
Dialogue: 0,0:04:39.28,0:04:41.36,Default,,0000,0000,0000,,the gender wage gap\Nshrinks to 11 percent --
Dialogue: 0,0:04:41.39,0:04:43.96,Default,,0000,0000,0000,,and this is before controlling\Nfor any of the factors
Dialogue: 0,0:04:43.99,0:04:46.88,Default,,0000,0000,0000,,that economists argue over\Nwhether or not to control for.
Dialogue: 0,0:04:47.26,0:04:49.94,Default,,0000,0000,0000,,If we really want to close\Nthe gender wage gap,
Dialogue: 0,0:04:49.96,0:04:52.45,Default,,0000,0000,0000,,maybe we should start\Nby opening up the payroll.
Dialogue: 0,0:04:52.86,0:04:56.09,Default,,0000,0000,0000,,If this is what total\Nmarket failure looks like,
Dialogue: 0,0:04:56.11,0:04:59.38,Default,,0000,0000,0000,,then openness remains\Nthe only way to ensure fairness.
Dialogue: 0,0:05:00.27,0:05:02.78,Default,,0000,0000,0000,,Now, I realize that letting people\Nknow what you make
Dialogue: 0,0:05:02.80,0:05:04.44,Default,,0000,0000,0000,,might feel uncomfortable,
Dialogue: 0,0:05:04.47,0:05:05.98,Default,,0000,0000,0000,,but isn't it less uncomfortable
Dialogue: 0,0:05:06.01,0:05:08.89,Default,,0000,0000,0000,,than always wondering\Nif you're being discriminated against,
Dialogue: 0,0:05:08.91,0:05:12.67,Default,,0000,0000,0000,,or if your wife or your daughter\Nor your sister is being paid unfairly?
Dialogue: 0,0:05:13.35,0:05:17.29,Default,,0000,0000,0000,,Openness remains the best way\Nto ensure fairness,
Dialogue: 0,0:05:17.32,0:05:19.23,Default,,0000,0000,0000,,and pay transparency does that.
Dialogue: 0,0:05:19.99,0:05:22.67,Default,,0000,0000,0000,,That's why entrepreneurial leaders\Nand corporate leaders
Dialogue: 0,0:05:22.70,0:05:25.49,Default,,0000,0000,0000,,have been experimenting\Nwith sharing salaries for years.
Dialogue: 0,0:05:25.51,0:05:26.92,Default,,0000,0000,0000,,Like Dane Atkinson.
Dialogue: 0,0:05:26.95,0:05:30.83,Default,,0000,0000,0000,,Dane is a serial entrepreneur\Nwho started many companies
Dialogue: 0,0:05:30.85,0:05:32.43,Default,,0000,0000,0000,,in a pay secrecy condition
Dialogue: 0,0:05:32.46,0:05:35.81,Default,,0000,0000,0000,,and even used that condition\Nto pay two equally qualified people
Dialogue: 0,0:05:35.84,0:05:37.53,Default,,0000,0000,0000,,dramatically different salaries,
Dialogue: 0,0:05:37.56,0:05:39.72,Default,,0000,0000,0000,,depending on how well\Nthey could negotiate.
Dialogue: 0,0:05:40.09,0:05:43.42,Default,,0000,0000,0000,,And Dane saw the strife\Nthat happened as a result of this.
Dialogue: 0,0:05:43.89,0:05:46.12,Default,,0000,0000,0000,,So when he started\Nhis newest company, SumAll,
Dialogue: 0,0:05:46.14,0:05:49.25,Default,,0000,0000,0000,,he committed to salary transparency\Nfrom the beginning.
Dialogue: 0,0:05:49.82,0:05:51.56,Default,,0000,0000,0000,,And the results have been amazing.
Dialogue: 0,0:05:52.42,0:05:54.05,Default,,0000,0000,0000,,And in study after study,
Dialogue: 0,0:05:54.07,0:05:55.95,Default,,0000,0000,0000,,when people know\Nhow they're being paid
Dialogue: 0,0:05:55.97,0:05:57.100,Default,,0000,0000,0000,,and how that pay compares to their peers',
Dialogue: 0,0:05:58.02,0:06:00.96,Default,,0000,0000,0000,,they're more likely to work hard\Nto improve their performance,
Dialogue: 0,0:06:00.98,0:06:03.83,Default,,0000,0000,0000,,more likely to be engaged,\Nand they're less likely to quit.
Dialogue: 0,0:06:03.85,0:06:05.26,Default,,0000,0000,0000,,That's why Dane's not alone.
Dialogue: 0,0:06:05.28,0:06:07.45,Default,,0000,0000,0000,,From technology start-ups like Buffer,
Dialogue: 0,0:06:07.92,0:06:11.26,Default,,0000,0000,0000,,to the tens of thousands\Nof employees at Whole Foods,
Dialogue: 0,0:06:11.28,0:06:14.45,Default,,0000,0000,0000,,where not only is your salary\Navailable for everyone to see,
Dialogue: 0,0:06:14.48,0:06:17.48,Default,,0000,0000,0000,,but the performance data\Nfor the store and for your department
Dialogue: 0,0:06:17.50,0:06:19.42,Default,,0000,0000,0000,,is available on the company intranet
Dialogue: 0,0:06:19.44,0:06:20.66,Default,,0000,0000,0000,,for all to see.
Dialogue: 0,0:06:21.98,0:06:24.45,Default,,0000,0000,0000,,Now, pay transparency\Ntakes a lot of forms.
Dialogue: 0,0:06:24.47,0:06:26.07,Default,,0000,0000,0000,,It's not one size fits all.
Dialogue: 0,0:06:26.09,0:06:28.59,Default,,0000,0000,0000,,Some post their salaries for all to see.
Dialogue: 0,0:06:28.61,0:06:30.91,Default,,0000,0000,0000,,Some only keep it inside the company.
Dialogue: 0,0:06:30.94,0:06:33.52,Default,,0000,0000,0000,,Some post the formula for calculating pay,
Dialogue: 0,0:06:33.55,0:06:35.32,Default,,0000,0000,0000,,and others post the pay levels
Dialogue: 0,0:06:35.34,0:06:37.12,Default,,0000,0000,0000,,and affix everybody to that level.
Dialogue: 0,0:06:37.15,0:06:39.20,Default,,0000,0000,0000,,So you don't have to make signs
Dialogue: 0,0:06:39.22,0:06:41.74,Default,,0000,0000,0000,,for all of your employees\Nto wear around the office.
Dialogue: 0,0:06:41.77,0:06:44.68,Default,,0000,0000,0000,,And you don't have to be\Nthe only one wearing a sign
Dialogue: 0,0:06:44.71,0:06:45.93,Default,,0000,0000,0000,,that you made at home.
Dialogue: 0,0:06:46.49,0:06:49.70,Default,,0000,0000,0000,,But we can all take greater steps\Ntowards pay transparency.
Dialogue: 0,0:06:50.23,0:06:52.26,Default,,0000,0000,0000,,For those of you that have the authority
Dialogue: 0,0:06:52.28,0:06:54.08,Default,,0000,0000,0000,,to move forward towards transparency:
Dialogue: 0,0:06:54.10,0:06:55.58,Default,,0000,0000,0000,,it's time to move forward.
Dialogue: 0,0:06:55.94,0:06:58.41,Default,,0000,0000,0000,,And for those of you\Nthat don't have that authority:
Dialogue: 0,0:06:58.44,0:07:00.41,Default,,0000,0000,0000,,it's time to stand up for your right to.
Dialogue: 0,0:07:01.26,0:07:02.99,Default,,0000,0000,0000,,So how much do you get paid?
Dialogue: 0,0:07:04.19,0:07:06.81,Default,,0000,0000,0000,,And how does that compare\Nto the people you work with?
Dialogue: 0,0:07:07.19,0:07:08.50,Default,,0000,0000,0000,,You should know.
Dialogue: 0,0:07:09.31,0:07:10.59,Default,,0000,0000,0000,,And so should they.
Dialogue: 0,0:07:11.94,0:07:13.10,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:07:13.13,0:07:16.31,Default,,0000,0000,0000,,(Applause)