With U.S. inflation at an all-time high 📈, HR leaders must be prepared to address pay fairness and inflation with their organizations. Learn more from Gartner_HR: GartnerHR CHRO
Moving forward, not all organizations can or will choose to adjust pay based on inflation. Still, HR leaders can minimize the impact on turnover by addressing employees’ pay concerns clearly and frequently. We recommend organizations take three actions to address issues of pay fairness at this time:Whether employees are being paid fairly or not, their perception of the matter influences their decision to stay or go.
One leading organization implemented a pay transparency pilot that shared how individual employees’ pay compared with those at other organizations in advance of compensation conversations. The company plotted employees’ base pay, total cash compensation and total direct compensation against a competitive range for their position. This approach helps employees understand how their compensation compares to the market and nullifies assumptions propagated by external sources.
According to the 2021 Gartner Employee Perception of Pay Decisions Survey, nearly half of employees want to receive communications about pay at least once a month, but only a third actually do. For the short term and after initial communication about pay and inflation, collect FAQs and update pay resources accordingly. You can source these questions yourself or lean on individual managers.
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