Thesis / Dissertation

Understanding How and Why Organisations Implement Pay Secrecy

Leanne Griffin, Michelle Brown (ed.)

Published : 2020

Abstract

Pay secrecy is an established organisational practice. However, little is known about why or how organisations implement this policy as the focus of research has been on employee reactions to pay secrecy. The widespread use of pay secrecy is puzzling since it blocks pay signals that can stimulate employee performance. To investigate this issue, two qualitative studies (an interview study and two cases studies) were conducted based on signalling theory. The research found that organisational decisions to implement pay secrecy were based on perceptions held by management about employees’ likely responses to pay information. Factors identified to be important included: employees’ emotions, obj..

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University of Melbourne Researchers