Companies must attempt to pay their people as fairly as possible. You might think a company should try to pay people as little as possible, but companies who subscribe to that philosophy must be prepared to steadily lose all their good employees to competitors willing to pay people what they’re worth. A company must attempt to pay each employee a fair salary, i.e. one that matches the employee’s skills, the market average and other employees inside the company. In other words, the company itself has a vested interest in keeping salaries fair, and keeping salaries secret makes that nearly impossible. Making salaries public (inside the company of course) has some major advantages:

1. Salaries will become fairer. The system gets a chance to adjust itself.

2. It will be easier to retain the best employees because they’re more likely to feel they’re getting a fair salary.

3. The pressure is on the people with the high salaries to earn their keep. Everybody has to pull their weight. The higher the salary, the larger the weight.

Secrecy is very important in the world of business. Sometimes there is some information which are confidential because if it is known by the company’s competitors they will use it to beat the company in the battle in the market field. Launching new products or introducing new inventions must remain confidential till the last minute to retain the competitive advantage. There is big misunderstanding in the business world regarding payroll systems. Payroll is a big headache for the top management because money is the main factor that employees take care about. Every person in this life work to get paid a fair salary in order to have a comfortable life. The problem is this case regarding salaries is that there is not a clear standardized payroll system. Marketing people are getting paid better than other employees although all of them are working under the same conditions.

This problem can be solved in one single way. He must invite all employees in the company for a meeting and cool down the atmosphere and try to explain the variance in salaries between the employees in a certain way not to solve the problem but to cool it down and promise that the top management will review the whole payroll system in the company and everybody will get his fair salary and all salaries will be posted on a big billboard so that it will be public. They must immediately start to work on a new payroll system and put standards for every single position and follow this procedure with every new recruitment.For example: All Junior accountant must get $700-Senior Accountant $1,000 and if a new junior accountant get recruited he will get $700 in a way the new accountant will get the same salary as the old accountant at the moment of recruitment.

Some of the Lebanese companies can give us a clear example at the problem that this company is facing. You can find an executive secretary getting paid much more than Internal Auditor in the company That is why the management try its best to keep salaries confidential because they know that if this auditor knows the truth he will be upset about this matter.Standardizing salaries in the key to avoid problems and fighting inside any organization and will make people work hard to jump from one position to another because it is the only way to get salary adjustment.