Should Salaries Be Based Solely on Position?

Merit is no longer a factor for some employers

6 August 2015

According to a TechCrunch article, some technology startups are setting the same pay for all employees with equivalent positions. Jet, a recently launched e-commerce startup, uses such a salary structure to bring transparency about compensation to the workplace and as a response to the pay gap between men and women. The model also eliminates raises based on an employee’s negotiating skills.

Forbes contributor Simon Constable calls lockstep salaries a mistake. “It is absurd to believe that all workers with the same title and the same experience will make the same contribution to the workplace,” Constable says. A Dice article points out that it also could give competitors leverage to poach an employee with the promise of a higher salary.

Where do you stand on lockstep salaries? Should pay be based solely on job title, or is salary negotiation good for a business?

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