If it were 2 that was driving it, companies would be equally quiet about grades. If you're annoyed that Jeff in sales is earning so much, you'll probably be equally annoyed that he's two levels higher than you.
However, in my experience most companies like to make a big deal about your grade. I know the level of pretty much every person in my office, and whenever anyone gets promoted, they get announced in front of the entire company.
The real driver is around option 1. The company doesn't really care whether you know that there's people in other departments or at more senior grades getting better paid than you. They'll just tell you that those people are doing more valuable jobs for the company.
What they don't want you to find out is how much that they are prepared to pay other people for doing your job. If you find out that the person they've just hired to do the same job as you is on £10K more because that's what the market is paying now, the company has suddenly got a pretty annoyed member of staff with a pretty good bargaining position.
However, in my experience most companies like to make a big deal about your grade. I know the level of pretty much every person in my office, and whenever anyone gets promoted, they get announced in front of the entire company.
The real driver is around option 1. The company doesn't really care whether you know that there's people in other departments or at more senior grades getting better paid than you. They'll just tell you that those people are doing more valuable jobs for the company.
What they don't want you to find out is how much that they are prepared to pay other people for doing your job. If you find out that the person they've just hired to do the same job as you is on £10K more because that's what the market is paying now, the company has suddenly got a pretty annoyed member of staff with a pretty good bargaining position.