When Salaries Aren’t Secret Debrief
Hank Adamson, CEO of RightNow!, is facing a sensitive situation. Someone got a hold of the entire company’s salaries and emailed it to all employees. Charlie, VP of Human Resources, believe it was Treece McDavitt, a mischievous employee, who sense pay unfairness and who was leaving the company. Now the company is in turmoil and Hank must addressed angry employees at a staff meeting. Hank has a meeting with Harriet, Chief Financial Officer, and Charlie to talk out the problem. Charlie suggested to state that from now on everyone’s salaries would be public for visibility purposes. Harriet opposed this suggestion arguing that it would cause more problems. Instead she suggested to review their compensation …show more content…
Everyone knows everyone’s salaries and this will cause tension between employees. However, Hank and his team have the opportunity of turning the situation around without the need of overreacting. It is evidently that Right Now! has a problem with its current compensation system. A gender pay gap exists, as Charlie pointed out, recent male marketers hires are earning way more than females marketers who have been there a very long time. Charlie said that the reason they have a higher salary is because in the tight market it is very difficult to find experienced marketer. According to the article Gender Pay Gap, in the 1979, a substantial portion of the gender gay could be accounted for by the combined effect of traditional measures of human capital – education and labor market experienced – today none of it can”(). It seems like discrimination might be an added reason of why males are getting a higher pay. Therefore, Hank and his team should review the gender pay gap that exists to avoid possible lawsuits. They should also keep in mind what factors they are using to make the pay distinctions for any future …show more content…
Yes, everyone knows each other’s salaries, however, this should not happen again. A company should strive to be transparent, but posting salaries will create more problems and dissatisfied employees. Employees will not feel comfortable that their coworkers know their salary. It will create a hostile environment and like Harriet said. “All those differences in pay – they reflect a hundred judgement calls that every manager makes about every employee”(). Some of the judgement calls are not fair, however, that is why the reward system will be
Hank Adamson, CEO of RightNow!, is facing a sensitive situation. Someone got a hold of the entire company’s salaries and emailed it to all employees. Charlie, VP of Human Resources, believe it was Treece McDavitt, a mischievous employee, who sense pay unfairness and who was leaving the company. Now the company is in turmoil and Hank must addressed angry employees at a staff meeting. Hank has a meeting with Harriet, Chief Financial Officer, and Charlie to talk out the problem. Charlie suggested to state that from now on everyone’s salaries would be public for visibility purposes. Harriet opposed this suggestion arguing that it would cause more problems. Instead she suggested to review their compensation …show more content…
Everyone knows everyone’s salaries and this will cause tension between employees. However, Hank and his team have the opportunity of turning the situation around without the need of overreacting. It is evidently that Right Now! has a problem with its current compensation system. A gender pay gap exists, as Charlie pointed out, recent male marketers hires are earning way more than females marketers who have been there a very long time. Charlie said that the reason they have a higher salary is because in the tight market it is very difficult to find experienced marketer. According to the article Gender Pay Gap, in the 1979, a substantial portion of the gender gay could be accounted for by the combined effect of traditional measures of human capital – education and labor market experienced – today none of it can”(). It seems like discrimination might be an added reason of why males are getting a higher pay. Therefore, Hank and his team should review the gender pay gap that exists to avoid possible lawsuits. They should also keep in mind what factors they are using to make the pay distinctions for any future …show more content…
Yes, everyone knows each other’s salaries, however, this should not happen again. A company should strive to be transparent, but posting salaries will create more problems and dissatisfied employees. Employees will not feel comfortable that their coworkers know their salary. It will create a hostile environment and like Harriet said. “All those differences in pay – they reflect a hundred judgement calls that every manager makes about every employee”(). Some of the judgement calls are not fair, however, that is why the reward system will be