Demystifying Open Salary Policies: Weighing the Benefits and Challenges

At the recent GDC, Matt Schembari, CEO of Lightforge Games, discussed the studio's approach to salary transparency, highlighting its benefits and offering a blueprint for implementation. Schembari, a veteran of Blizzard and Epic Games, emphasized that the goal is not to convince everyone to adopt an open salary policy immediately but to plant a seed for consideration. Having implemented salary transparency at Lightforge, Schembari shared the studio's experiences, noting that it has been a significant success, with benefits including increased trust, a more diverse hiring pool, and clearer career progression paths. He also addressed the challenges, such as the need for more open conversations about compensation and the potential for awkward comparative discussions. Schembari emphasized that salary transparency is essential for equity building and can help combat structural inequalities. He cited research showing a clear correlation between pay transparency and pay equity, highlighting the importance of using this effective tool to create a fair and equitable workplace. The talk also covered the implementation of an open salary policy, including the use of a standardized pay structure and job level system, which helps to ensure clarity and fairness in salary calculations. Schembari encouraged attendees to consider adopting an open salary policy, suggesting that it can lead to a more trusting and diverse work environment, and invited them to take the first steps on this journey by educating themselves and starting conversations about salary transparency.