Question

Mary and Sue both work in the same department. Mary believes that Sue is being paid considerably more than she is. In fact, both employees are being paid about the same amount. Mary wants a pay raise and complains to her boss and the compensation manager. Mat should the compensation manager say, assuming the firm follows the policy of not revealing the pay of individual employees? Should Mary be told the amount of Sue's pay? Or, should Mary only be told that there is a "misunderstanding" and that her belief is incorrect? Or, should some other approach be taken?

Answer 1

The compensation manager should not reveal the pay of individual employees and should inform Mary that there is a misunderstanding about their pay. It is important to address Mary's concern and assure her of fair compensation practices.

Step-by-step explanation:

The compensation manager should explain to Mary that the firm follows a policy of not revealing the pay of individual employees. Therefore, the compensation manager should not disclose the amount of Sue's pay to Mary. Instead, the compensation manager can inform Mary that her belief is incorrect and there is a misunderstanding about their respective pay. It is important for the compensation manager to address Mary's concern and assure her that the firm is committed to fair compensation practices and equal pay for equal work.

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