[ukigumo]

Is there a direct correlation between higher qualifications and better performance and output? If having two equally qualified employees, is their salary requirement the only decisive distinction?

I think this experiment will have quite a few positive net outcomes (publicity, reduction of cost with recruitment and retention, etc) but on the longer run employees making 70k will automatically know that they are on the lowest pay scale so I'm unsure how that will work out.

[cookiecaper]

It can definitely foment discontent when, say, a low-mid-level software engineer pulls the same as clerical workers. I wonder if that will have any effect on the company's ability to hire professionals. Maybe they'll expect a commensurate salary bump; if you're paying 1.8x the normal salary for a clerical or support worker, shouldn't you pay 1.8x the normal salary for a professional? What kind of message does that send about how much the company values professionals, and will pros be more comfortable at companies with more conventional pay structures (even though I doubt any would admit that publicly)?

[ukigumo]

That could be one way of doing things (all salaries raise in proportion to the minimum). It would make the company highly attractive for prospective employees and raise the stakes for current staff so would be an interesting "experiment".

[ryandrake]

Imagine if you were paid $500K/yr, but you knew it was the lowest salary paid to anyone in your company. How would that affect your morale? I know, personally, I would go home from work every night, absolutely thrilled at being the lowest paid person in my company :)

[ukigumo]

As an employee, your compensation is always tied to your notion of self-worth, or so I believe. Granted that the 70k seems like a very good salary for most entry level and some of the mid-level positions at any company but I think that the perception would change over time.

Let's say you are a developer making 70k and you know the receptionist makes at least the same. Or imagine you were paid 5K/yr and you knew you were paid the same as the CEO. Would you be happy with that too?

[emodendroket]

I think that if you're looking at the entire field and see that, in terms of the entire market, you're being well-compensated, you probably wouldn't spend a lot of time being resentful of other people in your company. I guess I could be wrong.

[ukigumo]

That would be definitely the case if your salary is way above market standards, but if ~70k is around what you would be making anywhere else, then it would like be a stress factor.

I mean, this is just a supposition I'm making. Maybe all salaries raise in line with the minimum.