If you knew 50% of your employees didn’t feel like they were being paid fairly, would you make adjustments to ensure you’re employees felt fairly compensated? Would you want to ensure your employees felt like if they were doing a good job, they were getting paid for it? According to the 2014 towers Watson Global Workforce study only 40% of employees think their employer links performance and pay scale. These numbers are pretty staggering. It’s time employers listen to employees regarding employee compensation before their is irreparable harm done to the employee employer relationship.
Employers, on the other hand know that they are only doing a mediocre job communicating pay scale. Only 35% of employers think their employees understand how base pay is communicated. So, employers have a few options at their disposal to improve employee compensation issues:
- Communicate base pay strategy and bonus structure better. By setting appropriate expectations employees will be more satisfied when the expectations are met.
- Supplement typical salary and bonuses with spot rewards. Using small gifts, given out on no specific schedule to recognize employees for a job well done is a great way to supplement employee income. Small denomination gift cards allow employees to treat themselves at popular retailers like Crutchfield and The Cheesecake Factory.
- Solicit feedback. If you’re not meeting industry standard, your employees are going to walk out the door. Make sure you meet standard market value and that your employees are satisfied with your plans.
For more information on fixing a rocky (in some cases broken) employee compensation program, check out MarketWatch and the full Towers Watson study.