European bank. Salaries were confidential and discretionary. Then they adopted a salary grid based on title and business area mostly to reduce the bonus component (a disproportionate amount of the comp was in bonus). Employees were happy, first because it meant a large base pay uplift for pretty much everyone, and because transparency means base pay ceases to be something to discuss about, everyone feels like he is being treated fairly.
Then I believe it triggered all sorts of problems. Front office base salaries is higher than middle office, no one will take a pay cut so it prevented front to middle office moves which is is an undesirable effect. It is also expensive, they liked having the ability to hire more cheaply. They dropped the grid after a couple of years.
But all the time the numbers were confidential (but when there is a grid it’s a matter of minutes before an accurate table circulates).
Then I believe it triggered all sorts of problems. Front office base salaries is higher than middle office, no one will take a pay cut so it prevented front to middle office moves which is is an undesirable effect. It is also expensive, they liked having the ability to hire more cheaply. They dropped the grid after a couple of years.
But all the time the numbers were confidential (but when there is a grid it’s a matter of minutes before an accurate table circulates).