Question

1. As businesspeople, I think we agree that there should be a difference in compensation between executives and rank and file employees, but to what degree should this occur? What are some best practices?

Answer 1

While it is true that differences in compensation must be there depending on ranks and positions, it must not be the reason for inequalities in the organisation. There must be parameters like qualification and experience and on the basis of these parameters compensation must be decided . But region or language or any other personal criteria must not be included in this calculation . Employees can be given ranks basing on their qualifications and their experience in the field on compensations can be set to those ranks and not to people. This will help in maintaining harmony in the organisation and is also ethical.We can also decide compensation based on experienced and every employee with certain experience can be given equal compensation so that inequality will not occur.