During a tennis game with her friend Fiona Tai on a Saturday morning, Rebecca Lee learned that her department had just hired a recent university graduate as a systems analyst at a salary just 20 percent lower than hers. Though Rebecca was good-natured, she was

puzzled and upset. It took her five years to become a senior systems analyst and attain the current salary level at her employing bank. In general, she had been satisfied with her employer and enjoyed very much her job.Rebecca confronted Henry Lee, the human resource director, the following Monday morning in his office. She asked Henry whether what she had heard was true. Henry admitted and tried to explain the company's situation. "The labour market for systems analyst is very tight. We have to offer a higher starting salary in order to attract qualified candidates. We desperately needed another analyst, and this was the only way we could get one." Henry said.Rebecca asked Henry if her salary would be adjusted upward accordingly. Henry answered, "Your salary would be re-evaluated at the regular time. You've been doing very well and I'm sure that your immediate supervisor would recommend a salary increase for you." Rebecca thanked Henry for spending his time, but left his office shaking her head and wondering about her future.

1. Do you think Henry's explanation was satisfactory? Relate your answer to concepts in compensation management.

2. Identify some possible reactions of Rebecca as a result of this incident.

3. What actions do you think the company should have taken with regard to Rebecca?

4. Do you think a company should keep employee pay secret and require all employees not to disclose their pay to their co-workers? Why or why not?

Textbook: Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2018). Fundamentals of human resource management