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Or the employer shifts to a less flexible compensation system, and everyone loses. Some employers will outright refuse to negotiate pay for a given position bec
by pseudo0 3y ago
Or the employer shifts to a less flexible compensation system, and everyone loses. Some employers will outright refuse to negotiate pay for a given position because HR gives them a grid or a standard formula.
- Certhas 3y agoHow does everyone lose? It seems to me that people worse at negotiating are set to win in this case...
- pseudo0 3y agoPay transparency measures were touted to reduce the "negotiation gap" but ended up undermining the bargaining power of individual workers, so I would be wary of unintended consequences. > Our model predicts that transparency reduces the individual bargaining power of workers, leading to lower average wages. A key insight is that employers credibly refuse to pay high wages to any one worker to avoid costly renegotiations with others under transparency. https://www.nber.org/papers/w28903 https://www.nber.org/papers/w28903
- Certhas 3y agoIf only there was a way to address the structural power imbalance in the negotiations between employers and employees....