Survey: Workers want more comp transparency in uncertain economy

Dive Brief:

Employees want more transparency about their companies’ compensation plans, according to Lattice survey results released June 21. Notably, 51% of employees surveyed said their companies should share how much everyone at the organization is paid.
On an individual level, employees are unsure how their compensation is decided, the survey showed; over 30% of all employees surveyed said they “did not have a clear understanding of how their own pay was adjusted around promotions and raises.”
Employee expectations around comp are also high going into “a difficult year” of economic volatility and high costs of living, Lattice said. Fifty-eight percent of workers surveyed said they are seeking potential compensation increases more than once a year and, assuming performance is high, 32% of employees said they expected comp increases of 4%-5% to feel appreciated — beyond the below-4% average increase most employers plan for.

Dive Insight:

The survey data comes as more states and localities pass laws requiring employers to disclose pay, sometimes upfront in a job posting, reflecting the ongoing push toward pay transparency overall.

Transparency could especially be key for employers that can’t outright boost pay for all workers in one fell swoop, as Microsoft did earlier this year, experts previously told HR Dive. If base raises aren’t on the table, but other variable raises or noncompounding comp increases are, employers should be willing to explain that to their employees, one expert said. Employers can also take a look at pay discrepancies, a Robert Half survey from April noted, including ongoing pay compression between new employees and tenured workers, where new employees may come in at higher rates than employees who have worked at the company for a long time.

Inflation has pushed employers to reconsider their plans outright, driving spot bonuses and “off-cycle” changes aimed at keeping employees from jumping ship to find better pay elsewhere, especially high performers, Mercer leaders said during a webinar in May. But it has also given employers an opportunity to push other benefits, experts said, including more transparency regarding career progression and learning opportunities; employee value proposition in general may need another look, and can include aspects such as remote work and flexible hours.