In order to develop a strong pay brand, you’ll want to have a clear compensation philosophy that outlines what you pay, how you pay and why you pay the way you do. It’s also about being strategic in how you communicate pay decisions with employees. When employees understand how pay decisions are made, they’re more likely to believe they’re fairly paid and stay engaged.
This year, we find that most organizations are still grappling with how to develop a strong pay brand. Forty percent of all organizations like the pay brand they have; a slightly larger group (41 percent) say their pay brand is neither good nor bad; 19 percent deem their pay brand to be bad or very bad among their own employees.
When we asked respondents to describe their pay brand, many answers reflected a desire for improvement. For example, some mentioned they don’t have a pay brand yet. Some emphasized a desire to improve pay transparency, others commented that their pay brand is inconsistent among different business units. Still, others talked about the difficulties of getting management buy-in to change their pay practices.
GET TIPS TO IMPROVE YOUR PAY BRAND