Gartner conducted a survey in 2022 and this was one of the findings. Another was that employees who perceive their pay as unequitable have a 15% lower intent to stay with their employer. They are also 13% less engaged at work than employees who perceive their pay as equitable.

So, the perception of unfair pay impacts retention and engagement.

Are you communicating to your employees about how you make pay decisions?

Are you consistent, objective, fair, and equitable? (Thank you @Syndio for the COFE acronym.)

Is your pay decision making process centralized? Managers may be making pay decisions that cause higher labor costs later because there are inequities that must be fixed.

Can you defend your assignment of performance ratings? Does you compensation philosophy mention “pay for performance?”

Have you looked at the pay decisions you make for new hires? This has a significant impact on your pay equity over the long-term.

How do you assess employee potential? Does this factor into your pay decisions?

Some employers are discussing these questions and creating a strategic communications plan to meet and exceed the legally required pay transparency requirements. Some employers are not.

Don’t wait. Your employee retention and engagement are at risk.

If you don’t communicate proactively, your employees will fill the silence with stories. Some of the stories will be fiction. Wouldn’t it be better to communicate the facts?

#paytransparency #payequity #fairpay #humanresources #rewards #compensation