While the jury is still out on pay as a motivator, there is little question that dis-satisfaction with pay is a serious de-motivator. So when a survey by a professional body such as the CIPD reports that nearly half of all employees are dis-satisfied with their pay then employers need to take note.
There is evidence that quiet, accepting employees earn less than confident, fractious ones even when those latter qualities are not pertinent to the job role.
The problem is exacerbated because employees frequently do not know what others in their position earn. Their prime source of data is often advertised jobs.
Moving career jobs especially across organisations, even without re-location, is a risk. Indeed the CIPD survey reveals that most people like to remain where they already are. Consider it yourself, changing your job is likely to determine the course of the rest of your life. So it is not untaken lightly. Recruitment professionals know this and advertised jobs invariably carry a premium to tempt those (already performing where they are) to move somewhere new. That is without the vested interest such agencies have in you appointing their candidate.
Above all, employees want to feel that they are paid fairly for the work that they do. Small wonder then, that if their main source of data is advertised jobs, many feel dis-satisfied.
Employers face similar dilemmas. What is “fair” is both difficult to determine and, without share-able data, can be hard to justify. They too may be led by the recruitment agencies – or more worryingly, by strong confident personalities. The latter can create further discontent among other employees.
The answer, we suggest, is market data about what people actually earn rather than what employees mistakenly think others earn. When you can demonstrate real information to employees then their feelings of unfairness (if you are being fair) will dissipate. Having the confidence to explain pay decisions to employees helps both employer and employee.
The data is there. 41 million people have shared their remuneration packages and some will be near you. Employer Solutions has access to the data and we would like to share it.