I work for a smaller software company (~25 employees) and basically manage all things IT (internal business IT and software development). I'm responsible for th

I work for a smaller software company (~25 employees) and basically manage all things IT (internal business IT and software development). I'm responsible for the IT budget, our software developer salaries are the single largest company "expense". When I started several years ago it came to my attention that the existing developers and IT staff were drastically underpaid (there was one other internal developer, an internal IT guy, myself, and a few outside contractors). I brought it to the attention of my bosses (managing partners) and have made it my goal to bring other developers salaries up to par. When I was hired I was making almost double what the other two were. I realized one of the biggest risks to the company was if either one of them decided to look across the street and find they could probably get a 40% raise on the spot. If they left a lot of knowledge and investment would walk out the door. Over that past few years we've weened ourselves off the contractors/consultants and have hired internally. We are now at ~8 developers. In order to hire the more recent developers we've had to offer market rate salaries. During reviews and hiring I've always told employees not to discuss their salary, mostly for psychological reasons. No matter what someone will feel bad. "What if you make more than them? They might not think you're worth more than them. Causing tension and friction. What if they make more that you? Same thing." I know that some have discussed it salary with others. At times it ticks me off.. makes me want to ensure they aren't lying by reducing their or withholding their next raise. (Please note that's a immediate gut reaction and I throw it out the window) quickly. I'm happy to report, after much effort, I've been able to show the managing partners again this year that some developers still need larger than COLA raises (some should get 20%, 15%, 10% and most 5%). They are weary but I think they finally understand the importance of this. We do reviews and raises in a few months, and when I sit down with them I will still insist on not talking about salary or raise (amount/percent) and use the same explanation as before. Yes, no one wants to be taken advantage of and the easiest way we think about doing that is salary transparency. That would work great in a world were psychology and subjectiveness didn't exist. I tend to be a very logical, analytical, rational personal. And as much as I hate office politics, emotions getting in the way, and having to hack psychology, they exist and as the logical, analytical, and rational person I think I am those things must be factored into going about things.