MGMT project 3 - 1 Secret Pay Plan Pros or benefits of...

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1) Secret Pay Plan Pros or benefits of using secret pay plan. - It benefits the company of saving cost by which, if new recruits of employees’ do not request for a higher starting pay without knowing what other new recruits are getting saves the company a lot of money and it is not the company’s fault. - Moreover, employees of the company cannot create disputes over workers who get lower pay than their referent because it will all remain confidential and the company human resource team has less issues to worry about. - Employees are less likely to feel undervalued in the company that they are working for. - The likely hood of employees having high absenteeism is reduced because they do not know what other employees are getting for the same exact job they are doing. The “cons” or problems associated with using a secret pay plan. - It cost more money in using a secret pay plan because company has to spend a lot of effort in keeping it a secret such as legal documents and extra human resource workers to monitor this situation. - It is bad for the company because sometimes it does not motivate employees to work harder for a promotion or a raise. - Moreover, it creates more politics in the work place. Whereby groups of employees will be gossiping about how much everyone else are making and would judge the company as being unfair. - Finally, it is harder for employees to judge on their individual performance because without knowing the general pay it is hard to gauge whether someone is under rewarded or over rewarded.
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