Which of the following statements about pay secrecy is true?
A) The free open discussion of salaries and wages is the norm in U.S. business.
B) Perceived inequities may arise due to poor implementation of a well-designed compensation plan.
C) Pay secrecy makes life difficult for managers.
D) Compensation professionals and managers are the only ones who should have responsibility for designing the compensation system.
E) Managers typically abhor pay secrecy.

Question

Quizplus · Accepted Answer

Perceived inequities can arise due to poor implementation of a well-designed compensation plan, which may lead to employees feeling underpaid and undervalued. Pay secrecy can exacerbate these feelings, leading to negative consequences such as low morale and high turnover rates. Therefore, it is important to have transparency in compensation to ensure employees feel that they are being fairly compensated for their work.

Which of the Following Statements About Pay Secrecy Is True