Less than half (47%) of UK employees said they feel their employers are transparent on compensation, according to new research by SD Worx.
The European HR service provider surveyed 5,625 HR managers and 16,000 employees in 16 European countries. The same figure felt their organisation was transparent on reward policies, packages, pay gaps or pay increases, compared to 30% of their European counterparts.
Nearly two thirds (61%) of UK employers are invested in greater pay transparency, compared to 52% of European organisations.
Nearly half (47%) of UK employees believe their organisation is trying to close gender pay gaps, compared to 40% in Europe, while 41% of UK employers and 35% of European employers acknowledging that there is still a gender pay gap. In Europe, 29% have seen broader efforts to tackle inequality, compared to 41% in the UK.
Despite 64% of European employers believing they pay their employees fairly, 49% of employees believe they should earn more for the work they do. This feeling is strong in Slovenia (60%), Serbia (59%) and Croatia (58%), as well as the UK (42.8%).
Furthermore, 38% of European employees believe their pay is competitive and in line with their sector, compared to 48% of UK employees.
Laura Miller, UK people country lead at SD Worx, said: “From June next year, employers within the European Union will have to be transparent about their wages as per the Pay Transparency Directive. Reporting must be done both internally and externally and employers must also make clear the criteria they use for salary and career development. Our market is leading the way, perhaps due to our history of equal pay legislation, employee engagement and candidates and employees being able to access information on salary banding from job ads, forum reviews and LinkedIn.
“Transparency about the full remuneration package, including benefits, is important in the perception of a fair wage. A total reward statement can help with this. Employers would do well to have their entire wage policy reviewed in a pay equity audit, as the deadline for the directive approaches in Europe and scrutiny continues in the UK.”
