How does maintaining salary secrecy historically benefit employers in managing internal equity?
Answer
Organizations maintain a significant advantage in internal equity management
When compensation structures remain opaque, organizations maintain a significant advantage in negotiation and internal equity management because employees lack the necessary data to challenge internal pay gaps.
Related Questions
To what common forms of sensitive information is the quiet agreement to keep earnings confidential often compared?What deep-seated personal anxiety is mentioned as a driver for salary secrecy?How does maintaining salary secrecy historically benefit employers in managing internal equity?What is a potential negative relational consequence if a coworker discovers a pay disparity tied to factors other than pure merit?What specific piece of US federal legislation protects the right of employees to discuss wages with each other?What is identified as a significant, hidden cost of salary secrecy for the individual worker?Which groups are mentioned as being disproportionately affected when pay figures are guarded, preventing them from challenging unfairness?What constructive approach is suggested for coworkers navigating compensation discussions to mitigate tension?If an employee earns significantly more than a peer, what is one fear associated with disclosing that higher salary?What do some organizations actively enforce policies against regarding compensation discussions?