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Some companies have “open compensation” plans where everyone can find out what anyone else in the company is making. What are the advantages to this?

Human Resource Management

Human Resource Management

Some companies have “open compensation” plans where everyone can find out what anyone else in the company is making. What are the advantages to this?

PLEASE ANSWER THE FOLLOWING QUESTION… Some companies have “open compensation” plans where everyone can find out what anyone else in the company is making. What are the advantages to this? Would you want to work for a company with an open compensation plan?

AN EXAMPLE…

Open Compensation plans are important aspects of an employee’s satisfaction in the workplace, as this could directly impact the employee’s performance and motivation at work. There are big benefits for workers and employees to know their salaries and pay, as this will bring a decrease in pay disparities. The transparency of the salary structure ensures the employees that their performance will increase, which should give confidence towards equal treatment and as a result to see that they receive equal pay for similar jobs. In an open compensation plan, there shouldn’t be any conflict among the employees within the company when they both work for the same position as the result being they will be able to view each other’s salaries and determine the fairness based on their own experience and performance. Those who are in high performance would enjoy the open compensation plans more, as this will show their results on a pay-for-performance level and based on seniority if the company chooses to view their employees like that. I would like to work for a company with an open compensation plan as the pay would increase my motivation to work, as I would be able to view my co-worker’s salary.

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NB

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