WiredGov Newswire (news from other organisations)
Keeping staff in the dark about pay feeds perception of unfairness, new research from the CIPD finds
Only half of employees think the are paid fairly and even fewer think that everyone in their organisation is paid fairly
Only half of permanent employees (51%) think they are paid fairly and even fewer (34%) think that everyone in their organisation is paid fairly, a new report from the CIPD, the professional body for HR and people development, reveals.
The report finds the perception of unfair pay is being driven by employers’ lack of communication around pay. The CIPD are therefore calling on employers to be more transparent about both their pay processes and outcomes.
When people don’t think they’re paid fairly, organisations reduce their chances of attracting and retaining the best talent. Employers also miss the opportunity to improve employee performance and well-being.
Charles Cotton, senior reward and performance adviser at the CIPD, said:
“Failure to be transparent about pay can make staff feel that they are being kept in the dark and feed a perception of unfairness.
“There’s a real opportunity for organisations to do a lot more around communicating their pay policies to staff, and encouraging line managers to talk to their teams about it, so staff understand how and why such decisions are made.
“But communication is only part of the story and won’t ensure people are paid fairly in the first place. Continued scrutiny over executive pay and gender pay gap reporting shows this is still an issue which many organisations are wrestling with, so businesses need to be on the front foot when it comes to understanding and assessing pay.”
The CIPD wants to see all organisations have a clear definition of fairness which covers both pay processes and outcomes. This should be developed with input from staff on what fair pay means to them.
Medium and large employers must carry out an equal pay audit on a regular basis to ensure that they are complying with the law, as well as putting in place a narrative which explains to staff and other stakeholders what skills, behaviours, performance and values it wants from employees and how in return it will reward and recognise these.
The CIPD’s Reward Management 2019 report, which surveyed 2,031 employees and 465 HR professionals, also found:
- One in five workers (20%) think the pay of their CEO is ‘about right’.
- Three in five people (60%) report that their line manager has never explained to them why they get paid what they do.
- Less than a fifth (18%) of employers have a formal process to assess and manage pay risk.
- Only 39% of employers have carried out an equal pay audit in the past three years to ensure they are complying with the law.
- Only a third (30%) of employers have a definition of what fair pay means within their organisation.
These findings show that too few organisations have appropriate checks and balances in place to ensure that pay is fair. It could result in unfair and inconsistent pay decisions slipping through the net more easily and organisations may be slower to spot them.
Latest News from
WiredGov Newswire (news from other organisations)
UK Space Agency: First Solar Orbiter instrument sends measurements17/02/2020 14:05:00
First measurements by a Solar Orbiter science instrument reached the ground on Thursday, providing a confirmation to the international science teams that the magnetometer on board is in a good shape following a successful deployment of the spacecraft’s instrument boom.
UK Space Agency - UK’s first industrial contribution to International Space Station ready for take off14/02/2020 14:25:00
UK-built technology that will revolutionise the science astronauts carry out on the International Space Station is due to launch today (14 February).
FRC: Audit, Accounting and Corporate Reporting during the Transition Period14/02/2020 11:25:00
The FRC and Department for Business, Energy and Industrial Strategy (BEIS) have published joint letters for accountants and auditors with information regarding auditing, accounting and corporate reporting standards during the transition period following the UK’s exit from the EU.
LGA responds to NAO report on local authority commercial investments13/02/2020 13:40:00
Cllr Richard Watts, Chair of the Local Government Association’s Resources Board, responded to a report by the National Audit Office on local authority commercial investments
New automatic payments for delays in switching “should give people more confidence to shop around”, says Citizens Advice13/02/2020 12:40:00
Citizens Advice, in its role as the official consumer watchdog for energy, has responded to Ofgem’s announcement of new automatic compensation for customers who have problems switching their energy supplier.
RoSPA - Free workshop will help to make new-build houses safer by design13/02/2020 11:40:00
With about 6,000 accidental deaths occurring in British homes every year, a new free workshop from the Royal Society for the Prevention of Accidents (RoSPA) aims to help house builders and architects ensure their projects are safer for all residents.
NHS Confederation - NHS Wales doing all it can to address the challenges of loneliness and social isolation13/02/2020 10:40:00
Nesta Lloyd – Jones, Assistant Director of the Welsh NHS Confederation responded to the launch of “Connected Communities: A strategy for tackling loneliness and social isolation and building stronger social connections’
LGA responds to government consultation on unregulated children's homes13/02/2020 09:40:00
Cllr Judith Blake, Chair of the Local Government Association’s Children and Young People Board, responded to the launch of a government consultation on unregulated children's homes, which proposes a potential ban of children under 16 being placed in these homes
HS2 is a vital upgrade and can create thousands of good jobs, says TUC12/02/2020 15:33:00
TUC General Secretary Frances O’Grady yesterday commented on the announcement to approve continuation of HS2.
The Wildlife Trusts: HS2 decision will destroy precious wild places12/02/2020 12:15:00
Today the Government gave the green light to the High Speed 2 rail project, without acknowledging the devastating impact on the hundreds of precious wild places and the wildlife that depends on them – that lie in the path of the route.