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Update: The Salary Leak

February 1st, 2008 @ 1:11 pm

5 Comments

Categories: Ethics, Office Life, Personal Conduct, Polls, Workplace

Tags: Salary, Benefits, Human Resources, William Baker

Our poll on how to handle a Salary Leak has generated a big response, with the majority choosing to hold a staff meeting where they explain how salaries are determined and what employees can do to improve their future pay.

But what’s really going to happen at such a meeting? Isn’t there already an obvious explanation to to how salaries are determined? Companies pay people as little as they can, yet just enough to keep them. “If a company has the opportunity to save a few bucks by not paying an employee as much as another,” reader “Toodor” wrote in the comments section, “they will take it.”

To keep the debate going, I’m going to play devil’s advocate here and say that calling a meeting is wrong because it acknowledges that this salary discrepancy is a problem that needs to be fixed. Isn’t the company doing what’s right for its bottom line if, in the salary negotiation process for new hires, they can get some people cheaper than others? Isn’t that the employee’s fault for not knowing their own worth? As reader “jim_moroney” wrote: “Assuming that some people are truly underpaid, why are they still there? Since anyone can look up what they may be worth on salary.com, why aren’t they looking?”

If you’re one of the underpaid employees, would this salary leak really have you screaming for gender equality, or feeling like an idiot for not demanding more from the beginning? Some people are getting paid more than others. Wouldn’t you be asking yourself what it is about those people that forced the company to give them more money for similar work? Are they better workers than me? Or are they just better than me when it comes to negotiating starting salaries and raises? Isn’t the only thing that’s going to be corrected in this situation your own reality of how money works in the business world? Isn’t it time to dust off the resume and go play the game elsewhere, since you’ve finally woken up to how the game works?

 
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  •  
    1

    thensley@...

    02/04/08 | Report as spam

    Face the Music

    1. A loyal staff member would not sabatoge the company, he would discuss the finding with the CEO - Staff member gone immediately.

    2. Meet with the remaining staff to determine:
    -where each is with this issue
    -gain a commitment from each to focus on finances
    -correct yourself since you are not doing your job

    3. Meet with the entire company to announce that salaries will be brought into alignment over the next 18 months.

    4. MAKE IT HAPPEN

  •  
    2

    rafa1702

    02/04/08 | Report as spam

    RE: Update: The Salary Leak

    Still missing the point. This is NOT about salary discrepancies among employees. It is about blatant GENDER discrepancies. Well, that??s what the original post said. So if that??s the case, the company/CEO hs some explaining to do.

    If it was "just" about discrepancies across the board, no, you don??t need to call a meeting. Thise discrepancies will always exist for many reasons (yes, one of them being looking after the company bottom line)

  •  
    3

    CleanNovaScotiaCY

    02/05/08 | Report as spam

    RE: Update: The Salary Leak

    I think that this kind of thinking is what has led to the labour shortage so many companies in certain fields are now experiencing. Is valuing employees and recognizing that treating them fairly only a reasonable response for the Dot Com companies that offer playrooms and Segways? I would argue no. How much of your time and money do you WASTE losing capacity and retraining staff when good people keep leaving? Unfair salaries -- especially with a blatant gender bias as in the original case--is a good way to lose people. Even some of the people earning more won't be comfortable with this situation for long, and what's more they've learned that you don't respect your staff, so you don't deserve respect. This is asking for your key players to sneak their resumes out and dump you with two weeks warning or less. It's a shoddy way to do business. The only reasonable way out--without handing a union carte blanche to come in and MAKE it fair--is to be very upfront and honest. Have the meeting, set up an inter-level staff and management committee to review salaries based on actual duties and market demand for skills, and be fair about it. That is the damage control that is required.

  •  
    4

    deniselinda.williams@...

    02/11/08 | Report as spam

    RE: Update: The Salary Leak

    This really happens. Google "Goodyear" and you will understand why the employees need to know about the disparate salaries.
    My experience with non-union jobs has been that the highest paid employees that received the best treatment were the slick people that were good at socializing. Ability and job performance bore no relation to job rewards.

  •  
    5

    wdmoloney

    04/04/08 | Report as spam

    RE: Update: The Salary Leak

    Sure, try to cool down the situation with discussions and meetings. But the distribution of the proprietary information requires disciplinary action. Legitimate PI must be protected regardless of an employee's personal opinions about it. Change the story to another type of proprietary information and the requirement for disciplinary actions may be more obvious. For example: employee health information, customer lists, vendor lists, collected racial information (as required by many government contracts) new product development plans. I???ve even seen product obsolescence information disseminated, which resulted in employee retention problems. Disciplinary action is needed to prevent possible bigger problems in the future.

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