1. Pay Secrecy
OS352 HRM
Fisher
April 6, 2005

2. Agenda
Review case analysis in groups
Discuss other examples

3. Small group discussion
Divide into groups based on your recommendation
Sim
Bakke
Kay
Tulgan
Your own
What are the strengths and weaknesses of that recommendation? Why did you choose it over the others?

4. Why pay secrecy? Why do companies often want to have pay secrecy?
Are there any downsides to pay secrecy for management?

5. Legal Issues and Pay Secrecy
National Labor Relations Board prohibits policies that forbid discussions of pay
Companies have found more support for policies that prohibit revealing the entire pay structure
Confidentiality (trade secret argument)
Similar to a product formula or marketing strategy

6. Examples Service Merchandise (retailer) Nursing home in Ohio
Woman was fired in 1980’s for discussing wages
Was rehired, company had to rescind policy
Nursing home in Ohio
Woman was fired for helping co-workers discuss inequity problems with managers
Was rehired and paid back wages

7. Whole Foods
Philosophy of employee empowerment, “no secrets” management
Team members participate in hiring decisions
Profit-sharing rewards distributed monthly
Salaries for all employees – including executives – published in each store
Strong financial performance over last five years
Source: Fishman, C. (2004 July). The Anarchist’s Cookbook.
Fast Company,

8. For next class Employee benefits
Read chapter 13
Bring benefits information from scavenger hunt.
Will distribute final essay questions.
SAP exercise 3 due on Friday at 3:00.