Stories
Slash Boxes
Comments

SoylentNews is people

The More Pay Secrecy, The Worse Performance

posted by janrinok on Thursday March 06 2014, @09:08PM   Printer-friendly
from the I'll-show-you-mine-if-you-show-me-yours dept.

Detective_Thorn writes:

"In a recent study published by the Academy of Management Journal, Prof. Peter Bamberger of Tel Aviv University's Recanati School of Business and Dr. Elena Belogolovsky of Cornell University's School of Industrial and Labor Relations have published a study that explains why pay secrecy is likely to hurt an individual's work performance and prompt top talent to seek new employment. They conclude that pay secrecy weakens the perception by employees that a performance improvement will be accompanied by a pay increase. It also finds that high-performing workers are more sensitive than others when they perceive no link between performance and pay; suggesting that pay secrecy could limit a company's ability to retain top talent."

So who, if anybody, benefits from pay secrecy?

 
This discussion has been archived. No new comments can be posted.
The More Pay Secrecy, The Worse Performance | Log In/Create an Account | Top | 32 comments | Search Discussion
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.

  • (Score: 4, Informative) by Anonymous Coward on Thursday March 06 2014, @10:44PM

    by Anonymous Coward on Thursday March 06 2014, @10:44PM (#12276)
    In the 90's Disney went through a similar profit-seeking exercise in their parks. "Excess" staff were fired, and the remaining staff asked to work punishing hours for the same pay.

    The very first casualty was the happy atmosphere that was arguably the Disney parks' greatest asset. I personally don't enjoy the parks so much for the rides - better can be found elsewhere. Disney was selling me the experience of friendly happy faces greeting me in their confectionary wonderland.

    Unsurprisingly, the profit-seeking backfired big time. I suspect industries with customer-facing staff have had a simimlar experience. Starbucks' policy of generous benefits (generally) reflects itself in a genuinely good customer experience.
    Starting Score:    0  points
    Moderation   +4  
       Insightful=1, Interesting=1, Informative=2, Total=4
    Extra 'Informative' Modifier   0  
    Total Score:   4