"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?
Maybe not to the penny - but close enough for government work. Time in service is a big factor in military pay, but there are other factors you need to know. Sea pay is calculated on the number of years served at sea. So, an E-5 over 12 who has served 9 years aboard a sea going command probably makes significantly more than an E-5 over 12 who has never been to sea. (He makes significantly more while he is at sea - if he gets orders to Pensacola to drive a desk, he won't draw sea pay while in Pensacola.)
Okay, I was Army and then Air Force, so I didn't know about the sea pay thing. Interesting, thanks.