In companies making a good profit, salaries may go up in cases like this. But some companies may not be able to pay everyone the same they pay the best performers.
If such transparency is mandated throughout a region, the best talent can react in a number of ways:
1) They can leave the region.
2) They can all work in the same few companies, either those requireing top talent or consulting companies. (Or go solo.)
3) Employers can find alternative ways to compensate them. (Generous benefits, plenty of approved overtime, generes travel refunds or any other compensation that does not require reporting)
4) Top employees can scale back their effort, and either have more free time or do side hustles. Employers may even encourage this, as it may be preferrable to those people leaving.
Most of the above will make it harder to run highly innovative companies (presumably those that require top talent), and in the end, I suppose this will drag the economy of the entire region down.
If such transparency is mandated throughout a region, the best talent can react in a number of ways: 1) They can leave the region. 2) They can all work in the same few companies, either those requireing top talent or consulting companies. (Or go solo.) 3) Employers can find alternative ways to compensate them. (Generous benefits, plenty of approved overtime, generes travel refunds or any other compensation that does not require reporting) 4) Top employees can scale back their effort, and either have more free time or do side hustles. Employers may even encourage this, as it may be preferrable to those people leaving.
Most of the above will make it harder to run highly innovative companies (presumably those that require top talent), and in the end, I suppose this will drag the economy of the entire region down.