Most People Have No Idea Whether They’re Paid Fairly
Most People Have No Idea Whether They’re Paid Fairly (downloadable pdf) by Dave Smith for Harvard Business Review. An analysis of compensation trends and how they are understood by employees.
PayScale, the compensation software company where I work, surveyed 71,000 employees to study the relationship between pay and employee engagement. The study results revealed that one of the top predictors of employee sentiment, including “satisfaction” and “intent to leave,” was a company’s ability to communicate clearly about compensation. In fact, open and honest discussion around pay was found to be more important than typical measures of employee engagement, such as career advancement opportunities, employer appreciation and future enthusiasm for the company.