Salary Steps

Paper Summary:

In order to avoid the sensitive issues surrounding salaries, some organizations have taken a proactive approach and set forth specific salary "steps" within job classifications which are predetermined. This approach enables managers simply to move employees from one step to the next. This is commonly done in public sector jobs where salary information is published and public information (although not the salaries of individual employees). This paper examines the problem which arose in a private sector institution, Pierce University library, where the library supervisor had misperceptions regarding salary increases. The paper identifies the problem, analyzes it and offers alternatives to the present salary system. It also recommends that the university adopt both the strategy of implementing a diversity program and develop guidelines to help managers and supervisors determine merit increases and who is eligible for them.

From the Paper:

"Another advantage to this strategy is that by giving greater authority to those lower in the organization (the supervisors), the institution can expect to retain these employees in critical jobs for longer periods. The supervisors have day-to-day knowledge about how the various tasks are performed, and even if they do not actually prepare performance evaluations or determine merit increases, they should nonetheless be included in the discussions regarding both of these in order that the institution have the best information available to it as it makes these decisions (Weiss, 1998, p. 10)."

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