Error In Compensation
I just found out that we have over compensated one of our people by almost $8000.00. Here is the story in brief. This employee was promoted to a position that had a 10% increase. He is a stickler for gaining any and all advantage so he would have know prior to the promotion what that would have meant in actual dollars. I do not handle compensation but none-the-less when the 10% was keyed into our system it was done at a rate higher than what would have been his current rate resulting in a 33% raise. Our mistake. Now here are the issues and questions.
No doubt he knew that his difference in pay was significantly greater than 10%, yet he said nothing. It has been 3 -4 months. The position is one that requires high integrity and honesty as an officer in our organization. It has raised serious ethical issues on his ability to remain in this position. Thoughts?
Since we have found the mistake what can we do? Can we adjust his salary to what it should have been? Can we mandate that he repay the over-pay? Can we deduct this from his check?
Actually I am more disturbed about his ethics because of his position. But I still have to seek advice on behalf of payroll. HELP!!!