
Compensation 11th Edition by George Milkovich,Jerry Newman,Barry Gerhart
Edition 11ISBN: 978-0078029493
Compensation 11th Edition by George Milkovich,Jerry Newman,Barry Gerhart
Edition 11ISBN: 978-0078029493 Exercise 7
Deb Allen's life-altering discovery at work really "communicated" her company's pay practices. Swamped with work at an asset-management firm, she went into the office over the weekend and found a document abandoned on the copy machine. The document contained the base compensation, raises, performance ratings, and bonus information for 80 of her colleagues.
Ms. Allen was outraged that a noted screw-up was making $65,000 a year more than more competent colleagues, while some new hires were earning almost $200,000 more than their counterparts with more experience. The discovery led her to question why she was working weekends for less pay than others were getting. "I just couldn't stand the inequity of it," she says. Three months later she quit.
But Ms. Allen couldn't bring herself to share the information with her colleagues. "I would have been better off not knowing any of that," she explains. "I couldn't give it to people who were still working there because it would make them depressed, like it made me depressed."
As the compensation director, what would you do if Ms. Allen had brought you this document, and asked for your help in understanding what was going on. (Firing the person who left it on the copier is not an option. It may have been you.)
Ms. Allen was outraged that a noted screw-up was making $65,000 a year more than more competent colleagues, while some new hires were earning almost $200,000 more than their counterparts with more experience. The discovery led her to question why she was working weekends for less pay than others were getting. "I just couldn't stand the inequity of it," she says. Three months later she quit.
But Ms. Allen couldn't bring herself to share the information with her colleagues. "I would have been better off not knowing any of that," she explains. "I couldn't give it to people who were still working there because it would make them depressed, like it made me depressed."
As the compensation director, what would you do if Ms. Allen had brought you this document, and asked for your help in understanding what was going on. (Firing the person who left it on the copier is not an option. It may have been you.)
Explanation
Equity Theory highlights on the equal an...
Compensation 11th Edition by George Milkovich,Jerry Newman,Barry Gerhart
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