More Firms Take Measures to Improve Pay Equity For Fair Pay

Many more companies are taking measures to increase pay equity among workers, confirmed research from talent solutions and business consulting firm Robert Half.

More than half of C-suite executives (56%) said they have observed salary discrepancies between new hires and more tenured staff in the past year. Of those, 62% are regularly reviewing compensation plans and increasing salaries for existing employees; when appropriate, to align with current market rates.

“Market conditions have shifted dramatically, and savvy employers are stepping up to address salary gaps and ensure all employees are being paid fairly,” said Robert Half’s Senior Executive Director Paul McDonald. “They know that taking a cautious ‘wait-and-see’ approach on compensation is risky; and can lead to the loss of great talent.”

STAFF EXPECT PAY RISE

There are several factors at play when it comes to wage growth, and employees’ expectations are among them. In a separate survey of more than 1,000 US workers, one-third of respondents (34%) said they have not had a raise in 12 months; and another 16% received one but were disappointed with the amount. In addition, nearly two-thirds (62%) plan to ask for a raise this year, with the top reasons being to:

1. Adjust for the higher cost of living (30%).
2. Reflect current market rates (23%).
3. Account for additional job responsibilities (22%).

If workers don’t get a raise:

• 31% will ask to revisit the salary conversation in a few months.
• 27% will look for a new job with higher pay.
• 23% will ask for more perks.

“In addition to setting competitive salaries, companies must consider the entire employee experience; and deliver programmes that satisfy their professional and personal needs. Career advancement and remote options are two big priorities for workers today,” added McDonald.

Click here for the latest information on salary and employment trends in the US.

Interestingly, around 42% of staff don’t think their employer is dedicated to closing pay gaps, according to another recent study. Click here to read more.