Keeping salary levels secret leads to staff dissatisfaction

Less than half of employers keep staff informed about their pensions
arrangements on an on-going basis, according to the annual reward survey by the

Results showed that while the vast majority of employers (88 per cent)
notify staff about pensions during their induction process, only 46 per cent
continue to keep their workforce updated on a regular basis.

Other findings from the research, which surveyed 572 organisations in
November 2003, revealed that a third of employers ask staff not to talk about
their pay and conditions with co-workers, while a quarter of them ask employees
not to talk about pay with anyone outside of the organisation.

Charles Cotton, CIPD adviser on reward and employment conditions, said that
employers’ secrecy on pay might cause problems in the workplace.

"It could lead to ill-founded rumours flying around the office leading
to dissatisfaction and falling commitment," he said.

"We believe that employers should be open about how salary levels are
determined and how pay progression is managed."

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