Asked by Robert Ortziz on Sep 23, 2024

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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.

Pay Secrecy

Policies or practices that prohibit or discourage employees from discussing their salaries with each other.

Compensation Professionals

Specialists who design, oversee, and manage the salary, benefits, and rewards programs for employees within an organization.

  • Elucidate the principle and consequences of maintaining confidentiality and openness regarding salaries within enterprises.
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RE
Rafael Emilio Dirocie Castillo6 days ago
Final Answer :
B
Explanation :
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.