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Why Salary Secrecy Exists: Exploring Factors and Impact on Employee Motivation and Market Conditions

Jakarta

Salary is one of the important things that people consider when looking for work. The salary that each person gets, even from the same company, is different, according to their position, workload and responsibilities.

There are companies that believe employee salaries should be kept secret. In fact, there are also companies that write regulations that employees must keep their salaries confidential in their work contracts.

So, why do salaries have to be kept secret?

There are differences in salaries for the same position

Quoted from People Matters, Tuesday (19/9/2023), the reason employee salaries are kept secret by the company is that there are differences in salaries for employees with the same workload, qualifications and responsibilities.

The difference in salaries for the same position is influenced by many factors according to the company’s qualifications, for example seniority or work performance.

Market conditions

Market conditions can affect employee salaries. Market conditions can make salaries very high or very low. If the salary earned by a certain level of employee is very high, then the company needs to re-evaluate the salary range for that position.

If an employee’s salary is too low, the company also needs to evaluate the salary, such as whether there was an error in determining the salary for that level or whether the salary is just a temporary phase and the salary will be improved when market conditions improve.

Motivation-demotivation

According to QM Financial, one of the reasons salaries are kept secret is that there are salary differences which have an impact on employee motivation or demotivation.

If an employee knows the salaries of other employees, especially those related to incentives, motivation will grow to work harder. However, these employees can also experience demotivation which leads to a crisis of self-confidence.

Also watch the video: Ganjar wants to increase teacher salaries so that they are qualified and prosperous

(fdl/fdl)

2023-09-19 07:05:57
#Reasons #Salaries #Secret #Important

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