COMP NEWS – Employers are committed to pursuing salary transparency in 2024, and many are also planning to raise wages.
Compensation continues to be one of the most important aspects of any successful workplace, and emerging trends around pay transparency and salary increases are shedding light on what the future holds for employees.
Half of companies rated their overall compensation package as above average, according to exclusive research from EBN’s 2024 compensation research report, which sought to explore current compensation trends and highlight best practices for adapting to market shifts. This is significantly higher than satisfaction around other competitive offerings, such as healthcare benefits and paid vacation.
As for how companies are determining the makeup of their compensation packages, 82% cited external benchmarking, 79% took into account an employee’s experience, 76% listed budget constraints and 60% said salary bands determined their pay and benefits strategy.
Around one-third of employers have said that moving towards salary transparency is altering the way they discuss compensation with current employees.
Employers were also conscious of being transparent around how they make these decisions. As one respondent shared with EBN, “Transparency has been part of our organization since I joined over 10 years ago. Today, it is part of the culture and continues to keep our employees engaged and with a far better retention than others.”
As salary transparency continues to be highly prioritized, and often legally mandated, 70% of employers already post salaries on their job listings, even when it’s not required by law, and of employers who post salaries on job listings, three-quarters say there’s room for negotiation beyond what’s listed.
Eighty percent say pay at their company is mostly or totally equitable and another 80% of employers have reviewed pay across the organization for equity within the past 24 months. It’s paying off: One-third of employers said a move towards salary transparency has changed their compensation discussions with current employees.
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