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I agree. When salaries are not public, there is just one factor that influences them, that is, the value that the company puts on that employee and the fear of
by Udik 12y ago
I agree. When salaries are not public, there is just one factor that influences them, that is, the value that the company puts on that employee and the fear of losing him/ her to a better offer. On the other hand, it's much easier for the company to reject a request for a pay rise because it might upset other employees. Note, this mechanism only works downwards: the company will never give a pay rise to nine employees on the grounds that the tenth already has a higher salary.
- tbrownaw 12y agoNote, this mechanism only works downwards: the company will never give a pay rise to nine employees on the grounds that the tenth already has a higher salary. You assume the outlier will always be at the high end. What happens when instead of one person being paid much more than everyone else, it's one person that's paid much less than everyone else?