Improving pay transparency is a major employer challenge
15 April 2015
More than half of employees believe they are not paid fairly for the work they do and just 37 per cent feel that there is a clear connection between their performance and pay, according to a recent study.
Pay & Benefits has reported that the research for Hay Group identified improving transparency around pay and other areas as one of five major challenges facing business across all sectors, concluding that organisations need to be more open and honest about how they reward, manage and develop their people.
Martin Palimeris, Senior Consultant at the consultancy, said that firms rated highest for engaging and enabling their staff achieved more than four times the revenue growth of the lowest scoring companies and were far more successful at retaining staff.
“People are the lynchpin to sustaining performance in this rapidly changing world, and organisations need to wake up to this,” he added.
The other factors identified through the research, based on 500,000 responses from 100 organisations, were optimising productivity, greater innovation, fostering collaboration between teams and improving business agility in areas such as decision making.
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