"Employers will also have to address the growing need for more pay transparency, given the increasing expectation of openness regarding pay and pay equity. It's becoming much easier for employees to gather salary information from online sources and learn what people with jobs similar to theirs are earning," observed Sejen. "But before they can be more transparent about pay, employers will have to make sure their programs are designed, administered and delivered effectively."Employers seem to recognize that the design of their pay programs is part of the problem. More than four in 10 employers (43%) have already taken steps, or are either planning or considering initiatives to change the criteria for base pay increases. But survey results found companies tend to hold managers at least partly responsible as well. Less than four in 10 (39%) said their managers execute their base pay programs well and about a quarter (26%) disagreed with the statement that managers are effective at fairly reflecting performance in pay decisions. "The importance of effective employee communication around pay has never been greater. Some states have adopted pay equity laws, and the CEO pay ratio disclosure requirements are likely to add fuel to growing concerns over pay equity and employee understanding. Employers should take this opportunity to conduct analyses of both external market competitiveness and internal fairness, and develop an action plan to address pay equity issues. This includes training managers on communication and ensuring they have the tools and resources to effectively communicate with employees about the basis for their pay opportunity and pay decisions," said Kate Van Hulzen, global practice leader, Communication and Change Management, Willis Towers Watson. About the surveys The Willis Towers Watson Global Talent Management and Rewards Survey was conducted from April to June 2016 and includes responses from 2,004 companies worldwide, including 441 companies from the U.S. The participants represent a wide range of industries and geographic regions. The Willis Towers Watson Global Workforce Study covers more than 31,000 employees selected from research panels that represent the populations of full-time employees working in large and midsize organizations across a range of industries in 29 markets around the world. It was fielded online during April and May 2016. The U.S. sample includes 3,105 employees and has a margin of error of ±1%.
About Willis Towers Watson Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
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