stepping-stones

Some employees think it is better to choose a different path at a new job rather than ask for a salary change

Nearly 50 percent of employees globally say their employers still do not share pay data internally, according to the Glassdoor’s Salary Transparency Survey.

Furthermore, the majority of employees in the UK (69 percent) wish they had a better understanding about what fair pay actually is for their position and skill set at their company and in their local market. More than half of employees in the UK (57 percent) believe they must switch companies in order to make a meaningful change in their compensation.

The Glassdoor survey polled 4,300 adults employed full-time/part-time in seven countries (the United Kingdom, United States, Canada, France, Germany, the Netherlands, and Switzerland).

Dawn Lyson, Glassdoor vice president of corporate affairs and chief equal pay advocate.

“Even in 2016, most employees—especially women—remain in the dark about what is fair pay for their particular role. The majority of employees report their companies 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 company. Our data shows by helping employees understand fair pay and providing clear pathways for advancement, employers can increase employee satisfaction, engagement and retention.”

Perception among employees may be that the grass is greener elsewhere, as many believe they could earn more at another company—an important message to employers. Older employees aged 55+ (43 percent) are less likely than their younger colleagues (65 percent of those aged 18-24 and 62 percent of those aged 25-34) to feel they must switch jobs for meaningful compensation changes.

Most employees report their companies do not share salaries internally

Times are changing, but sharing salary information among employees at a company is still not the norm. Less than half of employees in the UK say they know their company discloses salary information internally. This is higher than in France (33 percent), Germany (28 percent) and Switzerland (25 percent), although not as high as in the Netherlands (50 percent).

The majority of UK employed adults (74 percent) believe salary transparency is good for employee satisfaction and approximately the same percent (76 percent) believe it is good for business.

Lack of understanding persists around how pay is determined

Globally, employees have a lack of understanding about how their pay stacks up in the market: More than two-thirds of employed adults in the UK (69 percent) wish they had a better understanding of what fair pay is for their position and skill set at their company and in their local market. More than a quarter (28 percent) indicated they do not have a good understanding of how people are compensated at all levels within their company.

Clarity around compensation practices is divided along gender lines in the UK, where significantly more employed men than employed women believe they have a good understanding of how people are compensated at all levels in their company. In the UK, more men (64 percent) than women (55 percent) say they have a good understanding of how people are compensated at all levels in their company.

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Rebecca joined the HRreview editorial team in January 2016. After graduating from the University of Sheffield Hallam in 2013 with a BA in English Literature, Rebecca has spent five years working in print and online journalism in Manchester and London. In the past she has been part of the editorial teams at Sleeper and Dezeen and has founded her own arts collective.