Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPay & benefitsPay settlementsTeam rewardTotal reward

Less than a third think pay is fair

by Jo Faragher 28 Nov 2022
by Jo Faragher 28 Nov 2022 Employees who feel their pay is fair are more likely to be engaged with their employer
Shutterstock
Employees who feel their pay is fair are more likely to be engaged with their employer
Shutterstock

Less than a third of employees feel that their pay is fair, according to a survey by analyst company Gartner, while almost two-thirds think their pay is unequitable and are at higher risk of leaving.

Gartner’s survey of around 3,500 employees found that staff who consider their pay unjust have a 15% lower intent to stay with their current employer, and are 13% less engaged than those who think their pay is fair.

Last year, a Gartner survey found that 84% of reward leaders are conducting pay equity audits annually in a bid to close pay gaps.

“Employee perceptions of pay equity aren’t rooted in compensation,” said Tony Guadagni, senior principal in Gartner’s HR practice.

“Instead, the main driver of perception is organisational trust – when employees don’t trust their employers, they don’t believe their pay is fair or equitable.”

Gartner found that the key factor in whether employees felt they were being paid fairly was trust in their employer. Accordingly, businesses need to rebuild trust where employees’ perceptions of their pay are negative.

Pay equity

Women less likely than men to get a bonus 

Working class employees earn almost £7,000 less than peers

Pay transparency: How organisations can break the taboo

Its survey revealed that only 38% of employees understand how their pay is determined. When organisations communicate and educate employees about pay decisions, their trust increases by 10% and perception of pay equity by 11%.

Colleagues are likely to be sharing salary details already – in a survey conducted by the analyst firm earlier this year, 43% of employees discuss pay with colleagues in the same role, and 45% consult third-party salary sites.

Guadagni said many of the reasons for pay inequity stem from manager decisions around hiring, promotion and performance assessment, meaning it’s crucial to broaden accountability around pay decisions.

“HR leaders need to equip managers with tools that will enable them to make equitable pay decisions while remaining responsive to the other demands on the business,” he added.

“Managers should have access to dashboards that compare pay across their teams and be trained on the critical factors that should differentiate employees’ pay.”
He advises organisations to develop a pay equity team that “has broad insight into the factors that cause pay equity gaps and the authority to correct them”.

“An ideal pay equity team consists of leaders and employees across levels, business units and functions with insight into the practices and processes that create pay equity gaps and a visible commitment to pay equity within the organisation,” he said.

‘Inflation’ is word of the year

Separately, research published today by Glassdoor reveals that “inflation” is its word of 2022 after a 232% spike in mentions on the review site compared with 2021.

Discussion of “layoffs” and being made “redundant” surged by 101% this year as well, suggesting employees’ fears around job security and the cost of living are influencing their choice of employer.

Lauren Thomas, Glassdoor’s UK economist, said: “Besides the economy, employees have been talking about how the great resignation and hiring difficulties of 2022 have led to burnout and created high pressure, fast-paced workplaces with frequent turnover.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“However, while the economy and tight labour market are difficult for employers to change, there are initiatives which are appreciated by staff. Glassdoor’s research shows that employees value flexibility, hybrid working and opportunities to make in-person connections with their colleagues. These trends give employers a guide as to what is important to workers heading into the New Year.”

Compensation and benefits opportunities on Personnel Today


Browse more compensation and benefits jobs

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Thousands of apprentices failing to complete courses
next post
Warnings over patients unable to afford sick leave or eye tests

You may also like

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Ofgem workers ballot for strike action

2 May 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Post-pandemic starters seek more pay for on-site working

10 Apr 2025

Maisie Adam to host Employee Benefits Awards 2025

3 Apr 2025

Most businesses will need to adjust wages in...

28 Mar 2025

‘British people too polite to talk about salary?...

28 Mar 2025

Senior HR pay rising faster than junior roles

28 Mar 2025

Employee Benefits Awards 2025 shortlist revealed

24 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+