Impact of Uniform Compensation on Employee Satisfaction and Behavior
When all employees are paid fundamentally the same amount of compensation in an organization, it can have various impacts on satisfaction and behavior.
Effect of Secrecy-of-Pay Policy
What effect would a secrecy-of-pay policy have upon the situation?
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From India, Delhi
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When all employees are paid fundamentally the same amount of compensation in an organization, it can have various impacts on satisfaction and behavior.
Effect of Secrecy-of-Pay Policy
What effect would a secrecy-of-pay policy have upon the situation?
Regards
From India, Delhi
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I believe this kind of approach is not ideal. People should be paid based on qualification and performance
From Nigeria
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5From Nigeria
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I think it is an ideal way for a big organization. It helps you in maintaining a good and clean payroll. However, it is not advisable for flat or small organizations. It would be more appropriate for an organization with a long list of hierarchy and with 2-3 designations within each hierarchy, i.e., Jr. Officer, Officer, Sr. Officer, Asst Manager, Dy Manager, Manager.
In the above scenario, you would be able to give the same salary to all the employees in a given designation and can promote a higher-performing employee to the next designation. This is possible even without changing his profile as the profile of Jr. and Sr. Officer would be similar. An annual performance bonus can be added for encouraging high-performing employees. This is how most of the banks (including the private sector) and most of the marketing companies manage their payroll.
From India, Ahmadabad
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In the above scenario, you would be able to give the same salary to all the employees in a given designation and can promote a higher-performing employee to the next designation. This is possible even without changing his profile as the profile of Jr. and Sr. Officer would be similar. An annual performance bonus can be added for encouraging high-performing employees. This is how most of the banks (including the private sector) and most of the marketing companies manage their payroll.
From India, Ahmadabad
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Dear Ajmal,
I am happy to see you. We have missed you all these days. I remember your reviews on the documents uploaded. I used to read all your posts. Very happy to see you back!
Dr. Mahanta is back with the round of discussions that we have all been a fan of. Please do connect with him.
Regards, (Cite Contribution)
From India, Mumbai
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I am happy to see you. We have missed you all these days. I remember your reviews on the documents uploaded. I used to read all your posts. Very happy to see you back!
Dr. Mahanta is back with the round of discussions that we have all been a fan of. Please do connect with him.
Regards, (Cite Contribution)
From India, Mumbai
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You have posted two queries.
When all employees are paid fundamentally the same amount of compensation in an organization, what is the impact on satisfaction and behavior?
If an organization is compensating their employees in line with their performance and qualifications, it will definitely help the organization to meet its objectives supported and driven by its employees.
Behavior is unpredictable and will vary from individual to individual, proportional to circumstances/situation. But it can be controlled if necessary measures are adopted in favor of employees.
What effect would a secrecy-of-pay policy have on the situation?
As Mr. Ajmal said, it is ideal for a large organization having a huge number of employees with a few designations within the same hierarchy. Down the line, I am sure there will be disparity among employees when facts are revealed.
But how can you ensure that you can retain the secrecy of pay policy? Every policy (post-implementation) has pros and cons.
Unless there are no employee compensation issues, this policy will work just fine.
With profound regards
From India, Chennai
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When all employees are paid fundamentally the same amount of compensation in an organization, what is the impact on satisfaction and behavior?
If an organization is compensating their employees in line with their performance and qualifications, it will definitely help the organization to meet its objectives supported and driven by its employees.
Behavior is unpredictable and will vary from individual to individual, proportional to circumstances/situation. But it can be controlled if necessary measures are adopted in favor of employees.
What effect would a secrecy-of-pay policy have on the situation?
As Mr. Ajmal said, it is ideal for a large organization having a huge number of employees with a few designations within the same hierarchy. Down the line, I am sure there will be disparity among employees when facts are revealed.
But how can you ensure that you can retain the secrecy of pay policy? Every policy (post-implementation) has pros and cons.
Unless there are no employee compensation issues, this policy will work just fine.
With profound regards
From India, Chennai
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