Hi laksmi,
I am surprised that you do not, in the first place, have a Private & Confidentiality Policy covering the single most important thing why people work for someone - salary.
Contrary to what you or others might easily brush off as simple as having a P&C policy, there are a host of others underlying issues connected to when people protest over unfair treatment in salary movement. The main principle argument that is usually invoked is the question of equity. What this means is how is the value of team member contribution within a team determined. This is one the pressing issues for leadership when you discriminate the rewards, according to certain subjective criteria. There are no right or wrong way to go about deciding what works best in designing a good reward system, but the basis of it must take into account elements such as objectivity, fairness, quantifiable, measurable and acceptable to the larger majority. When you have crafted this, then you need to communicate it - how the game will be played and rewarded.
Now, coming back to your case, to what extent was this person aware on of the game. Was it made known that increments will be based solely on individual performance contribution. Was the person misled to think otherwise - in the context and spirit of teamwork, "One for all, All for One". This is at the heart of all controversies when you discriminate individuals in a team, when they carry the same workload effort in producing the desired results. Believe me, as a performance management expert, many people do not give sufficient thought to safeguard this aspect of damage on the team-spirit when they discriminate rewards by individuals.
There is not enough space for me to present my case, but I would seriously advise you to the one place that can help you turn around this potential demotivator, if not disaster. Talk to the team and seek their views how to move forward so that you do not get another member with the same issue, come next year.
Remember, the P&C policy is there to tell them its a non- disclosure subject and they could get into trouble if reported. But, that is not going to stop if collaborators too have a secret P&C agreement to cross share. Then you are left with the same signs of dysfunctional team behaviour and low morale. The worst part is its a catch 22, since you really can't put your finger on what is really bugging the person because revealing the reason will land the person in trouble!. What then... How do you address a problem without knowing the root cause. Do you now see my point. My advice is look towards a long term solution in designing a well thought out and comprehensive performance mgt system - it can be KPI results or Competency/behaviour based, so long as every team player agrees to what and how rules will influence the points/ratings. If can, incorprate a 360 degree evaluation component into it and factor the appropriate weightage so that people know how important it can influence their performance. Once done, then what is left is merely members earning what they already acknowledge and accept. This is what the spirit of performance based reward system is meant to be. It should be dynamic in its multiple role and purpose, such as reflecting the spirit of meritocracy culture of excellence at work, spirit of performance, recognition of STAR Individuals, devlopment of talent, etc This is how companies are suppose to engage and motivate people.
I would strongly advice you to coach the person and motivate her back to her original psychological level of enthusiasm. Tell her, missing out on a few dollars, does not have to alter our reason to prove she only worked for the money, not the team. Enquire how the financial loss has affected her perpspective to work, colleaques, company, profession, family, etc. Empathise and help her through her low moments and demonstrate your genuine care and concern for all members of the TEAM.
I conclude with an oxymoron. We encourage and reward a behaviour to reinforce more of it, right. Why do we then do the opposite when it comes to teamspirit, even if it is done in P&C. Where is the spirit, strength and allegiance to the integrity of the team.
I hope the above helps.
Rgds
Yuva
Malaysia