Recent research shows that of those who feel they are underpaid more than half are paid at or above their market rate.
While compensation is the number one reason people leave companies, data shows two-thirds of people who are being paid the market rate believe they’re actually underpaid, representing a huge discrepancy. Source: Harvard Business Review.
What is important is that employees feel their pay is fair and that can only be established with objective data. Moreover, what about those who are truly underpaid – are you are at real risk of losing them?
Getting pay right is about market value. Paying more than you need, by only a few percent, will hit your bottom line. 2% of a £1M payroll is £20K. Under-paying may hit it even more seriously; in recruitment, vacant post and training costs. The median cost of recruiting employees (£2,000) or Senior managers (£7,250) takes no account of vacancy, training, or lack of continuity costs. Source: CIPD / Hays 2015.
You need data you have obtained yourself so you can talk about pay sensibly and informatively to employees. To get that vital data in a dependable form, talk to Employer Solutions.