Manage HR Magazine | Friday, October 21, 2022
European companies are becoming more attuned to the needs of their employees, with 86 per cent of organisations having increased communication around pay programmes drivenby more inclusive company values and cultures.
FREMONT, CA: European businesses are becoming more receptive to the requirements of their workforces; 86 per cent of organisations now communicate with employees more frequently about pay policies as a result of more inclusive company cultures and values.
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Other considerations, such as employee expectations (77 per cent), confidence in pay programmes (79 per cent), and change, push businesses to be more transparent about compensation.
Companies also become more transparent about compensation due to rising legal obligations and ESG initiatives, with 72 per cent of businesses attributing this development to legislation and 51 per cent to ESG. Yet many organisations are reluctant to disclose additional information regarding pay because 59 per cent of businesses worry about potential employee reactions.
Nearly a quarter of businesses refrain from sharing salary information due to administrative complexity, while more than a third have legal reservations about doing so.
However, organisations that have made the decision to reveal pay rates see less pay-related bargaining and inquiries from potential employees. But more than half of businesses have found that it leads to additional queries from current workers.
Pay Transparency
The majority of European businesses already discuss job levels, chances for variable compensation, and how base pay is set, or they plan to do so in the near future. While 64 per cent of businesses use webinars for HR portals, 56 per cent disseminate this information, and management primarily communicates this.
In addition, 31 per cent of European organisations presently reveal the localised adjusted pay gap, and a similar number of companies plan to do so in the future. However, 68 per cent of businesses only provide data mandated by regional laws. Additionally, 95 per cent of international organisations want to give a story about their strategy for addressing pay equity.
New Regulations
“It's likely that openness around pay will only increase,” said Eva Jesmiatka, Europe Lead on Pay and Career Equity at WTW. Openness around matters like salary and career parity is becoming increasingly crucial because employees' expectations are expanding. They demand transparency and actions that are in line with the ideals being articulated.
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