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Report: More than half of workers believe they’re underpaid. Here’s why

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It’s a crazy labor market. Wages are increasing, job openings are exceeding candidate applications, and employees everywhere are quitting. Organizations are scrambling to figure out retention strategies that will actually work. PayScale recently released a fair pay impact report analyzing whether employees know if they are fairly paid and the impact their perception has on job-seeking behavior.

The results don’t look good for employers. In fact, the analysis shows that most employees have no idea whether or not they are fairly paid. In the current hot job market, employees who assume the worst about their pay are shown to be 50 percent more likely to seek a new job. However, PayScale’s research does signal something employers can do to increase employee retention in a volatile market: pay communications. Pay communications are a cost-free tactic open to all employers and have been demonstrated to deter job-seeking behavior, with a high degree of pay transparency being the most effective at building trust and increasing retention.

More than half of employees (51 percent) believe they are underpaid when they are actually paid at market or above market rates according to analysis of PayScale’s crowdsourced salary data.

Specifically, PayScale’s fair pay impact report shows that employees really have no idea if they are paid fairly. A whopping 86 percent of employees surveyed believe they are paid at........

© Fast Company

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