US companies to increase levels of pay communication
12 Outubro 2023 - 10:56AM
A majority of U.S. organizations are communicating pay information
to their employees, according to a new survey by leading global
advisory, broking and solutions company WTW (NASDAQ: WTW). The 2023
Pay Transparency Survey found that increasing regulatory
requirements are encouraging organizations to communicate their
organization’s broader pay policy. However, barriers to pay
transparency remain as employers fear increasing questions and are
concerned about their effectiveness in educating their workforce on
this complex topic.
The survey found most U.S. organizations are communicating
different components of their pay program information to employees.
Six in 10 are disclosing job levels to their employees, and almost
half (48%) are communicating how individual base pay is determined
and progresses. Over one-third of companies (36%) are disclosing
individual pay ranges to employees, but an even larger number (46%)
are planning or considering doing so in the future.
Regulatory requirements are the most commonly cited (81%) factor
for encouraging greater levels of pay program communication. Other
commonly cited factors include company values and culture (55%) and
employee expectations (54%), followed closely by an environmental,
social and governance and diversity, equity and inclusion agenda
(53%).
“Many U.S. organizations are providing more visibility into
their pay programs and practices,” said Mariann Madden, North
America Fair Pay co-lead, WTW. “Boards of directors are taking
ownership for pay equity and pay transparency and are looking for
organizations to define, monitor and report on their commitments
and priorities. Pay equity and transparency are closely linked. It
will be very difficult to have confidence in one without the other
in place.”
WTW’s survey found 38% of U.S. employers are communicating or
planning to communicate publicly a pay equity commitment. A smaller
number have communicated their pay transparency commitment;
however, 44% of companies are planning or considering what they
will share.
While these mandates are still only enacted in less than 10
states, regulatory requirements are driving more employers to
communicate pay information. For prospective employees, nearly two
in five respondents are communicating or planning to communicate
pay rate or pay range information regardless of requirements. Of
the 91% of companies communicating or planning to communicate pay
ranges, 65% are disclosing a hiring rate/range for the job. A
majority of organizations are using a consistent approach to what
is shared and what pay range/rate is disclosed.
Half (50%) of employers believe communicating pay rates or
ranges will increase questions from current employees. Manager
effectiveness concerns are also top of mind for employers (47%).
Indeed, although managers are the most common channel for
communicating pay program information (84%), only 38% of
organizations report being effective at educating managers about
this complex topic.
“We are at a tipping point with pay transparency,” said Lindsay
Wiggins, North America Fair Pay co-lead, WTW. “Organizations need
to get their house in order by developing and actively managing
foundational job architecture and leveling frameworks and
conducting equal pay, pay gap and pay driver analyses to uncover
and address areas of risk. Understanding their current state will
support businesses in their efforts toward addressing the various
legislative requirements but also in providing greater transparency
into their talent and rewards programs and practices.”
About the survey
WTW’s 2023 Pay Transparency Survey was conducted in July 2023.
In the U.S., a total of 448 respondents completed the survey.
Globally, a total of 1,313 respondents completed the survey.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you. Learn more at wtwco.com.
Media contacts:
Ileana Feoli: +1 212 309 5504ileana.feoli@wtwco.com
Stacy Bronstein: stacy.bronstein@wtwco.com
Willis Towers Watson Pub... (NASDAQ:WTW)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Willis Towers Watson Pub... (NASDAQ:WTW)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024