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Workers unhappy with opaque salary structures

MOST workers feel that salary structures within their companies are not transparent with the majority also unhappy with the pay grades within their organisations and stand ready to leave their employer should there be a better offer, a survey has revealed.

By Kudzai Kuwaza

According to the findings of a survey by Industrial Psychology Consultants (IPC) titled Salary Transparency Report, 84% of the respondents perceive their organisations’ salary structures as not transparent. This means that about 8 in 10 employees believe there is lack of transparency in their organisations regarding salary structures.

The report revealed that the majority of the participants (70%) is not happy with their job grades. In other words, this means that 7 in 10 employees are not satisfied with their job grades. Only 7% are happy with their pay grades, the survey reveals.

According to findings in the survey, 59% of the respondents do not know their salary range, which is approximately 6 in 10 employees who do not know their salary ranges.

The report pointed out that 86% of the respondents are prepared to leave their current organisations should another company offer a better remuneration package.

“In other words, 9 in 10 employees have the intention to leave their organisations should another organisation offer better remuneration,” IPC notes in the survey.

According to the report, 63% of the participants believe that the differences in salaries between management and other staff members are not reasonable or equitable. In other words, 6 in 10 employees argue that the salary gap between management and other staff members is not fair.

Most of the employees (69 %), the survey found, agree with keeping individual salaries confidential. In other words, 7 in 10 employees believe individual salaries should be confidential. This highlights that the majority of employees are not prepared to disclose their salaries.

Another observation made by the survey is that most of the participants (93%) believe they are not overpaid in their current roles. Only 4% percent of the participants believe they are overpaid in their current roles.

More than 330 employees with an average work experience of 14 years were interviewed in the survey.

“Recent studies have shown that employees’ negative perception to the pay structure of their respective companies may prove to be harmful to their performance and motivation. Thus salary transparency, to a certain extent, tends to affect employee engagement,” IPC said in the report. “It has also been argued that companies who have transparent salaries tend to be considered to be the employers of choice by the public. Companies with less transparent salaries and pay structures more often have problems with employee retention.”

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