Housing allowance (case study)
It was customary to pay a 20% housing allowance in addition to the salary. The programme manager decided however to simplify the payroll by incorporating the housing allowance into the new salary scales. He explained this to the staff and they appeared to accept it.
Staff soon started to complain that they should be paid a housing allowance in addition to the new higher salaries. They did not accept the argument that it was included in the salary. They insisted that everyone should be paid a housing allowance – it was the custom.
It would have been better to have continued to pay the salary and housing allowance separately. Far more time was spent in endless discussions than was ever saved by simplifying the payroll.
This page was last updated by Phil Wilks on 28 April 2010 at 12:14:45 (2 years ago).
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