Photo by João Victor da Silva Ribeiro on Unsplash
HR professionals are missing how fair pay perception is affecting trust in the workplace, according to a new report, which warned employers of its potential consequences for the workforce.
The latest research from Salary.com revealed the strong association between fair pay perception and workplace trust.
It found that 36.4% of employees who rate their pay as unfair reported declining trust in their employer over the past year.
This is more than five times the 6.6% of employees who feel they are fairly paid at work, according to the report.
Amy Dwyer, CHRO at Salary.com, said their findings show that pay fairness and trust are not two separate, unrelated programs.
"Our latest research shows they are part of the same conversation," Dwyer said.
The report further noted that the findings reflect an association rather than a causal claim, pointing out that of all the respondents who feel unfairly paid, 48.1% are in the negative trust territory while just 19.1% reported positive trust.
On the other hand, among employees who feel fairly paid, 77.5% reported positive trust, including 30.1% who trusted their employers more.
Dwyer, however, noted that employers are easily missing the connection between fair pay perception and workplace trust amid a quiet labour market.
"That connection is easy to miss right now," she said.
According to the report, 44% of HR professionals cannot tell whether their organisation improved trust with its workforce over the past year.
Compensation management professionals, in particular, are more likely to be unsure (59%).
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