Employees tend to guess how much MORE management is making. And, in truth, it isn't THAT much more. It hasn't been since the early 70's. But, the guessing alone can make employees resentful. So, why not consider a transparent pay policy? I'm not alone with this thinking, either. According to a recent article in Inc.com, "Provide aggregated pay information (e.g., the range of pay or median for a given role in the firm). Employees who earn more than the median will feel appreciated. Those who earn less will want to know why--which is a good opportunity for you to explain how you view compensation, and more important, what those workers need to do to earn more."
So, you see- being transparent with baseline pay scales are a great thing! Money is tight everywhere. Business owners are often stressed, employees are always (and rightfully so) seeking pay increases, and customers want the best service possible for the least amount of money. Eliminate a single stress by creating a pay scale memo, sending it out, and discussing the issue at your next company meeting.
Have you ever been put on the spot when it came to your pay? How did you handle it? Let's continue this discussion on Twitter! DM me.