Employee salaries and the process of giving pay raises remains a secret and few are privy to the closely guarded process, sadly it remains archaic even in the modern day age. Disconnect between compensation and performance is one of the biggest contributors of employee angst and subsequent employee disengagement.

Due to lack of transparency, most of the employees fail to understand the compensation program and generally have a perception that it is inconsistent and unfair.Disengaged employees may have reduced productivity and increased chances of attrition...

Sometimes the only thing worse than having an HR department is not having one.

When LRN Corp., which helps companies develop ethics and compliance programs, restructured a few years ago, the 250-employee business abolished most job titles and department names. It also did away with its human-resources department, which had dealt with recruiting and compensation issues, among other things.