HRM Supplemental Exercises
Click on the following links. Please note these will open in a new window.
First, read “How Facebook Decides an Employee’s Salary” by Aine Cain in Business Insider at https://www.inc.com/business-insider/how-facebook-decides-employee-salary-earnings-how-much-money-pays-formula.html
Second, watch Why you should know how much your coworkers get paid on TED https://www.ted.com/talks/david_burkus_why_you_should_know_how_much_your_coworkers_get_paid#t-373744 (8 minutes).
After reading Chapter 11 and the materials above, please address the following questions:
- Do you think using a set formula to determine compensation is a good idea? Why or why not?
- If you were to create a formula for compensation, what factors would be included?
- Is it reasonable to assume most organizations disproportionately reward shrewd negotiators with their compensation structures?
- Why does salary transparency make for a better workplace for the employee and for the organization?
- Would you be open to sharing salary information with your coworkers? Why or why not?