What aspect of older compensation structures can lead to pay differences even for employees with the same job title?
Answer
One employee being hired when the headquarters was in a higher cost-of-living area years ago.
Disparities can arise because an older structure might include historical factors like location differentials, meaning an employee hired years ago under different policies may have a different rate than a recent hire under a new, location-agnostic policy.
Related Questions
What is a fundamental justification for maintaining salary confidentiality based on personal grounds?What negative impact on team morale can widely known salary structures cause?In scenarios where a newer employee earns less than a long-tenured colleague, what may justify the older employee's higher rate?What operational flexibility does maintaining salary confidentiality grant the employer in the hiring market?If a competitor raises the rate for a specific role, what does a confidential system allow a company to avoid immediately?What is the frequent result when transparency is implemented without overhauling complex, legacy compensation structures?What is cited as a frequently unacknowledged reason organizations hesitate to abandon confidentiality norms?In a confidential system, what is suggested as a more effective negotiation focus than internal comparisons?What aspect of older compensation structures can lead to pay differences even for employees with the same job title?What two organizational goals are represented by the tension in the debate over salary confidentiality?