Pay Secrecy
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Transcript of Pay Secrecy
Pay Secrecy
OS352 HRMFisherApril 6, 2005
Agenda
Review case analysis in groups Discuss other examples
Small group discussion
Divide into groups based on your recommendation Sim Bakke Kay Tulgan Your own
What are the strengths and weaknesses of that recommendation? Why did you choose it over the others?
Why pay secrecy?
Why do companies often want to have pay secrecy?
Are there any downsides to pay secrecy for management?
Legal Issues and Pay Secrecy
National Labor Relations Board prohibits policies that forbid discussions of pay
Companies have found more support for policies that prohibit revealing the entire pay structure Confidentiality (trade secret argument) Similar to a product formula or
marketing strategy
Examples
Service Merchandise (retailer) Woman was fired in 1980’s for
discussing wages Was rehired, company had to rescind
policy Nursing home in Ohio
Woman was fired for helping co-workers discuss inequity problems with managers
Was rehired and paid back wages
Whole Foods
Philosophy of employee empowerment, “no secrets” management
Team members participate in hiring decisions
Profit-sharing rewards distributed monthly Salaries for all employees – including
executives – published in each store Strong financial performance over last
five years
Source: Fishman, C. (2004 July). The Anarchist’s Cookbook. Fast Company, 70-78.
For next class
Employee benefits Read chapter 13 Bring benefits information from
scavenger hunt. Will distribute final essay questions. SAP exercise 3 due on Friday at
3:00.