Your manager tells you that the best way of ensuring fairness in reward distribution is to keep the pay a secret. How would you respond to this assertion?

Answer:

There are at least two problems with pay secrecy. First, it does not always work. People often find out each other’s pay due to security problems in the organization’s HR system, employees sharing this information with their confidants, or some employees making the assumption that their pay is common knowledge. Second, when pay is secret, employees often assume that they must be underpaid. Regardless of pay is secret or not, the organization will need to review the pay scale and examine whether pay is correlated with the amount of inputs (such as skills and performance level) people are bringing to work.