An open compensation plan (or system or policy) is one with a defined pay scale and no rules about keeping employee pay confidential. Open compensation plans are noted for reducing employee turnover. One example of an organization with an open compensation system is the U.S. military.
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Last revised Jun 13, 2026
Open compensation plan
An open compensation plan is one with a defined pay scale and no rules about keeping employee pay confidential. Open compensation plans are noted for reducing employee turnover. One example of an organization with an open compensation system is the U.S. military.