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Secretly freezing pay for some to give to others

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Given today's economic environment, some companies are secretly freezing pay raises or even cutting pay for some employees so they can offer substantial raises to people considered star performers.

1. As a motivational technique, does this practice seem like a good one to you?

2. Discuss pros/cons of this practice from various stakeholder perspectives e.g. employees, co-workers, management, tenure vs. non-tenure employees, etc.

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Solution Preview

1. Due to today's economic environment and the highly competitive nature of business, I believe that this is a necessary as well as effective practice for companies to take in order to motivate their employees to perform at higher levels. This is a good technique due to the fact that higher pay is one of the best motivators for employees, and when Star performers are compensated well for their performance, then these individuals tend to continue to perform at very high levels. When Star performers perform at ...

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