Today we release the eighth annual installment of PayScale’s Compensation Best Practices Report.
A strong theme emerged this year showcasing the connection between compensation and organizational culture. There is evidence that some organizations have discovered this connection, linked compensation with culture and – as a result – are thriving. But, for most, there’s pretty big disconnect between how employers think their employees feel about pay and how employees actually feel.
We’ve called this disconnect “the Corporate Chasm.” Results from PayScale’s 2017 Compensation Best Practices Report support this disconnect: 44 percent of employers believe their employees are paid fairly, but only 20 percent of employees agree.
So what can employers do about it?
- Get the C-suite to care about comp. We learned that 57 percent of organizations agree that compensation is becoming more important to executives. As executives begin to understand the value of culture more, helping them connect the dots between compensation, talent strategy, culture and business results will help your organization succeed.
- Give them cash. If your employees matter to you, consider giving them substantive raises to base pay. While companies have been talking about the 3 percent raise year after year, we found that only 26 percent of companies gave an average raise of 3 percent.
- Use fresh data. Data is the backbone of good compensation. If you want to retain, engage and attract top talent in your critical roles, you need good, current data. We found that while 54 percent have done a full market study within the past year, 46 percent have referenced market data for individual jobs more frequently than annually.
These suggestions are just scratching the surface. We are hosting a webinar on February 22nd to share these and other findings and insights from the 2017 Compensation Best Practices Report. We hope you’ll join us.
Can’t wait? Download the report today!