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Should businesses pay people on a structured and distinct scale or allow employees to negotiate salaries?
It is easier for a company to structure outgoings and budget for the future; therefore, it means they are better placed to make fiscal deductions and plan for the future.
Having fixed salaries helps
, it is more convenient for companies to plan, making budgets easier to manage.
Companies generally have a
for budgets and anticipate changes within the numbers. Therefore fluctuations in salaries is not a shock to the system, but actually part of the system.