Addressing Pay Discrepancies: A Growing Priority for Employers
Market Dynamics and Worker Expectations
A recent survey by Robert Half reveals that 56% of 376 C-suite executives observed pay discrepancies between new hires and tenured staff in the past year.
Immediate Action Required
62% of respondents are regularly reviewing compensation plans and increasing salaries to align with market rates, reflecting a shift away from a “wait-and-see” approach.
Employee Pressure Driving Change
In a separate survey, 62% of U.S. workers plan to ask for a raise in 2022, citing living costs. If denied, 31% would revisit the conversation, and 27% would seek new employment.
The Impact of Pay on Employee Retention
The Great Resignation and Pay
During the Great Resignation, low pay influenced 63% of U.S. workers’ decisions to quit in 2021, according to Pew Research. More than half of job switchers reported earning more in their new positions.
Attrition in the Pandemic
A Conference Board survey noted that nearly one-third of employees who left during the pandemic earned over 30% more in new roles, with 20% receiving increases of 10% to 20%.
Addressing Pay Discrepancies is Key
Robert Half survey respondents planning to address pay discrepancies may be on the right track. Glassdoor reports that 63% of female employees feel the talent market provides leverage for negotiating pay.
Strategies Beyond Pay Increases
Frequent Pay Increases
Employers are incorporating more frequent pay increases outside the traditional annual review process, offering short-term incentives throughout the year.
Benefits and Perks
Beyond pay, employers are exploring benefits and perks. A four-day workweek is gaining popularity, with 92% of employees expressing interest, citing improved work-life balance (88%) and increased productivity (82%).
In a competitive job market, understanding and addressing pay discrepancies are crucial for attracting and retaining top talent.
Source: HR Dive
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