Salary.com® leads the market in total compensation management software and data solutions. The company today announced the results of its flagship 2024 Pay Practices Survey. 77% of organizations say they pay employees fairly.
Employees do not agree.
“Imagine a store where you can’t see the prices. That’s what almost 70% of employees feel like. Their companies do not clearly communicate pay structure,” said David Turetsky, Chief Human Resources Officer and Vice President of Consulting at Salary.com. “Our Pay Practices Survey shows a widespread disconnect. Employers see it one way. Employees 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,” continued 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 flagship 2024 Pay Practices Survey offers more 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.
The 2024 Pay Practices Survey studies the state of compensation. We surveyed 1,108 organizations during September 2023 across 21 industries. If you wish to purchase a copy of the Survey, please click here or contact Annmarie Seldon on annmarie.seldon@salary.com.
Salary.com offers analysis on emerging pay trends and provides working solutions for compensation, hiring and retention. Salary.com offers the market’s most comprehensive and exact global compensation information. The company uses only HR-reported data. Ironclad data integrity is our mandate. We never use crowd-sourced data.