What’s the reasoning behind HR strict control of pay decisions?
- Managers can’t be trusted to spend the company’s money effectively or efficiently
- Managers tend to make emotional vs. business decisions, therefore increasing company costs
- Tight budget control is necessary to ensure that inappropriate decisions don’t overplay available funds.
Over time, such a restrictive environment will have negative repercussions - for the manager, the candidates and ultimately for the business itself.
Managers aren’t allowed to manage pay for their employees. They do what they’re told. This is where the finger pointing starts.
- Decisions about the worth of a candidate are made by “bean counters,” outsiders, and not those better able to assess the impact of a candidate’s background and experience.
- Internal equity can become distorted as policy over principle restricts managers from taking corrective action to balance pay between employee experience / performance levels.
- Managers aren’t allowed to develop professionally when missing a key element of their responsibilities. The next generation of leaders is not being prepared.
- Managers lose faith in Human Resources. HR becomes an adversary.