Salary.com leads the market in total compensation management software and data solutions. The company announced the results of its flagship 2024 Pay Practices Survey, where 77% of organizations say they pay employees fairly. Employees do not agree.
“Imagine a store where you can’t see the prices,” says David Turetsky, chief human resources officer and vice president of consulting at Salary.com. “That’s what almost 70% of employees feel like. Their companies do not clearly communicate pay structure. Our survey shows a widespread disconnect. Employers see it one way. Employers see another. This spells trouble for engagement and retention. Active employee communication is the fix.”
Salary.com’s mission is to enable pay transparency. Sharing information about pay promotes fairness and helps reduce wage gaps. Discussions about pay enhance trust and accountability. Getting pay right improves engagement and productivity.
Pay transparency begins with communication. Barely half of organizations discuss compensation with their people at all. Only 26% communicate it in writing. Only 36% teach managers how to have pay conversations.
“Lots of studies show employees are unhappy with their pay,” says Turetsky. “Gartner has shown only 32% of employees feel compensation is fair. This misalignment causes friction within organizations. It limits productivity. The time for pay transparency is now. It is the key to future-proofed organizations.”
Salary.com’s survey offers these key takeaways.
- Turnover is still an issue, increasing from 16% in 2022 to 17% in 2023.
- At 25%, healthcare has the worst problem, while business services and manufacturing see over 20% attrition.
- The percentage of companies paying bonuses for hot skills went from 35% in 2022 to 42% in 2023.
