secret pay.docx

Justin Prahl MGMT 340.801 Secret Pay Takes the emphasis off of ?what someone?s salary is?. Example, you feel you are going the extra mile on every aspect of your job. You see yourself as a model employee. On the other end of things, there is the average employee, who does what is required of him, but doesn?t put in any extra effort. He also happens to get paid more than you. As of result you could feel discouraged and like your company doesn?t respect your work. A company with this policy will not have to worry about an employee going to an competitor, using pay as leverage to get a raise or a higher salary from another job. An employee could go the extra mile and do a good job, but they have no idea of knowing if their efforts are being rewarded relative to less committed employee. If an employee doesn?t have an idea if their efforts are truly being rewarded or not, then their motivation will go down. Decrease in motivation will likely lead to decrease in job performance. Being unable to disclose current salary can make it harder for an employee to get a raise (via leverage by going to competitor) or getting a higher salary from a competing company. I would prefer to work with a company with a secret pay plan. Aside from the belief that someone?s pay is their own private business, I believe it has good benefits. I don?t either the cons I have listed as being something that would affect me. Wherever you go in business, there will most likely be someone getting paid more than you, even if you don?t feel that they deserve it.