Pressure is mounting for the corporate world to address pay equity, according to a new report. But getting leadership to support pay transparency within organisations is one of the biggest challenges in addressing pay equity report 35% of HR professionals, confirmed Salary.com.
Approximately 64% of US HR professionals surveyed reported facing more pressure to get pay right than just six months ago; with 20% calling the pressure “tremendous”. Current employees and job candidates are ranked as the top sources of pressure to get pay right; followed by organisation leadership and society at large.
More than half of the companies put HR Directors in charge of pay equity programmes; followed by compensation heads, according to the survey. Around 37% of HR professionals said their organisation is struggling to address pay equity. The vast majority (85%) indicated they know what to pay their employees to stay competitive; and 61% have a process in place to address internal pay equity. Yet only 35% have an established pay philosophy that supports pay transparency.
LACK OF PAY TRANSPARENCY PHILOSOPHY
This lack of transparency negatively impacts employees; with only 34% saying that any manager at their organisation could honestly and accurately answer “How is my pay determined?” when asked by an employee. Around 64% do not currently provide wage range disclosures in their job postings; and only 34% plan to do so in the next 12 months.
Other challenges stopping HR leaders from addressing pay equity include:
- Integrating pay equity philosophy into our culture/employee experience (17%).
- How to conduct a pay equity analysis (14%).
- Finding the right technology, data collection and analysis tools (14%).
- Finding someone within our HR organisation who can oversee pay equity on an ongoing basis (7%).
- Other, including budget and competing priorities (13%)
FAIR PAY ADVANTAGE IN WAR FOR TALENT
Around 81% of HR professionals credit the tight labour market for making it more difficult to hire new employees; and an overwhelming majority (95%) see pay equity as a competitive advantage in the war for talent.
“A tight labour market has given employees and job recruits the upper-hand in salary negotiations; and many are rightfully exercising that power to demand an internally equitable and externally competitive salary,” stated Garry Straker, Senior Compensation Consultant at Salary.com. “This survey makes it clear that HR professionals appreciate the value of fair pay when it comes to recruiting and retaining talent. However, it remains to be seen how quickly companies will execute on new pay strategies to meet heightened employee expectations.”
Click here to download the full results of the report. Compensation transparency, fair pay and pay equality remain key factors in employee retention, according to a recent study. Click here read more.
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