HR CASE STUDY: When

salaries arent a secret

By:
B5: Amit Singh Parmar
B15: Kunal Gujar
B25: Pooja Kaushik
B35: Ridhima Batra
B45: Siddhant Shukla
B56: Aditya Singh Bisht
EXECUTIVE SUMMARY

Case study revolves around a fashion retail store- RightNow!
Hired young personnel for higher salaries
Salary of employees made public by former employee
Feeling of disparity between employees
Confusion in the top brass
CHARACTER DESCRIPTION
HANK ADAMSON: Chief Executive Officer
CHARLIE HERALD: Vice President of Human Resources
TREECE McDAVITT: A young high technical expert hired for creating a
website
HARRIET DUVAL: Chief Financial Officer
TAMMY: Charlie Heralds Assistant
EDITH: Controller, who is been here for more than 20 years but earns
1/3
rd
of what Harriet earns
Other characters: ALLAN, MAX, ARKADY, JOSH
ISSUES
Employees are angry regarding the differences in salaries
Policies of HR are not strict
Few members hired on relationship basis rather than qualification
Fall in the Employee satisfaction level
Unsecure network security system
No common solution to the problem

Solution A : Create open system with
transparency

Create salary ranges for all jobs
Create variation within each range to absorb individual performance
differences and efficiency based pay scale
Pros:
This system would help to determine everyones performance
Would also keep the system transparent
Would bring more trust among the employees
no fear of leak cases
Cons:
Competitors will easily know our pattern of salary
Employees might feel they are underpaid



Solution B: Review the salary and keep it
confidential
Let everyone know that the salaries are under a review
Bring the whole situation back to the same position
Pros:
No person would feel inferior/superior as pay is not disclosed
Less fear of competitors pitching particular individuals for higher pay
Cons:
Employees may doubt the company and its fairness in pay
They would always be in doubt about the leak and it may happen again

Best Solution: Closed System of the
salaries
Company must follow the Closed System of the salaries
HR department must be recruited once again and the salaries should
be revised
More secure IT department should be devised
The revised salaries will be based upon the formula Basic salary +
%increase in the Basic salary
Incentives will be based upon achievement of targets
Will enhance the working efficiency of the employees


Salary Grading System:






System may be more rigid
HR department must maintain personal interaction

Grade % increase in salary
A 75%
B 50%
C 25%
D 12.5%
E 5%
PROBLEMS SOLVED BY THIS SYSTEM
There will no feeling of inferiority or superiority on the basis of the
salary
Outside companies wont barge in the internal working of the
company
Better working environment in the company
More efficiency level of the employees
Decorum will be maintained
THANK YOU