As calls for pay transparency rise, 54 percent of people leaders report pay bands are known only to HR and finance, according to Lattice’s annual report.
It is also revealed that 25 percent of employees know the pay band for their job level, while only 9 percent have access to the pay band for the next level up.
There will be increasing pressure on companies to change this, and quickly: Previous research from Lattice revealed that 67 percent of US employees and 64 percent of UK-based employees want more transparency from their companies about pay practices, while over half of employees across the US and the UK said that they want to know what everyone as their organisation is paid.
Hybrid work is here to stay – and going better than we think
While headlines might highlight the continued push and pull between employees and organizations around returning to offices, the research underscored that hybrid and remote working policies will continue to dominate into 2023.
Half of respondents expect to maintain a remote workforce of 50 percent or more over the next 12 months.
Also, nearly one in four expect to maintain a 90-100 percent remote workforce.
And there is evidence that hybrid work is working: companies with a 90 percent remote workforce reported being just as happy with manager-employee facetime as those with a 10 percent remote workforce. Of those with facetime concerns, engagement and culture, not productivity, emerged as the primary challenge.
Connecting compensation & performance
With pay transparency on the rise and financial security top-of-mind for employees, clearly linking employee performance to their compensation has never been more important. HR leaders agree, but admit they aren’t doing enough.
It was found that 83 percent of HR professionals believe compensation should be linked to performance;
Yet, 72 percent acknowledge they could improve efforts to link the two in employee evaluations, and 27 percent admit they need to do a lot more.
Putting in work here is worth it: two-thirds of companies who reported a good or great connection between performance and compensation had more engaged workforces, while only 11 percent of companies with a weak or no comp-performance connection said the same.
DEIB is a top priority, with bias in performance reviews taking center stage
DEIB surged in priority after a dip in 2021, rising from #6 to #4 on the priority list for People teams – with addressing bias in performance reviews emerging as a top concern.
Employee sentiment validates the urgency here: 51 percent of US employees felt there was bias in performance/compensation reviews, and nearly a third said their organizations weren’t taking adequate steps to address it.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
