Laurence Clement is the CEO of a Canadian child clothing retail store. He is considering implementing a merit pay plan in the hopes of increasing sale's people and store manager's motivation and satisfaction, while maintaining pay secrecy. You have arranged to meet with management to discuss this with them.

a. What will you tell them about the impact of pay secrecy in the effectiveness of the merit pay plan? What would you recommend (secrecy or disclosure) and why?

b. Provide suggested strategies of how a merit pay plan can be calculated for both sales people and store managers.

Answer rating: 100% (QA)

a Impact of Pay Secrecy Pay secrecy may create a lack of transparency and trust among employees potentially leading to feelings of unfairness and demo... View the full answer