Almost three-quarters (70%) of employee respondents believe that salary transparency has a positive impact on employee satisfaction, according to research by Glassdoor.
Its Global salary transparency survey, which surveyed 8,254 employees in Canada, Switzerland, Germany, France, the Netherlands, the UK, and US, also found that 69% of respondents would like to have a better understanding of what fair pay is for their position and skill set at their organisation and in their local market.
The research also found:
- 59% of male respondents believe they have a good understanding of how pay is determined at their organisation, compared to 51% of female respondents.
- More than a third (36%) of respondents say their employer discloses salaries internally.
- More than half (56%) of respondents feel they need to move to another organisation to gain a meaningful change in compensation.
- 61% of UK respondents believe they have a good understanding of how employees are compensated at all levels in their organisation. This compares to 71% of Canadian respondents, 60% of US respondents, 52% of French respondents, 49% of Swiss respondents, and 43% of respondents in Germany.
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Dawn Lyon, vice president of corporate affairs and chief equal pay advocate at Glassdoor, said: “The majority of employees report that their [organisations] do not share pay data internally even as most employees believe salary transparency is good for business and employee satisfaction.
“Employers need to understand that perpetuating salary sharing taboos can ultimately impact retention. More than half of employees around the world feel that in order to get a significant raise they need to jump to a new [organisation].
“Our data shows by helping employees understand fair pay and providing clear pathways for advancement, employers can increase employee satisfaction, engagement and retention.”