Report shows employees want their employers to be more transparent about pay
While the economy continues to create thousands of jobs on a monthly basis in both Canada and the U.S., new research shows money matters are top-of-mind among employees across North America.
“Not only will these initiatives help attract and retain top talent in today’s competitive job market, it’s simply the right thing to do.”
The inaugural Pay Experience Report, released by global human capital management (HCM) company Ceridian HCM Holding Inc. and conducted by Hanover Research, reveals North American workers are challenged by financial matters that impact life at work and outside of work, including:
- Prevalence of stress: 80 percent of North American workers are stressed to some capacity about pay and money issues on a regular basis.
- Pay transparency: Only 30 percent of workers are completely satisfied when it comes to transparency of information about their pay.
- Pay Equity: Not making a good salary is the leading factor for female workers not being satisfied with their employer (51 percent of women listed pay, versus 35 percent of men).
- Communication: While a big part of creating a positive compensation experience comes down to communication, more than one-in-three (37 percent) surveyed do not feel comfortable discussing their pay with their manager.
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“The demands and expectations of employees in today’s workforce are significantly different than two or three decades ago when most company leaders began their careers,” said Lisa Sterling, Chief People and Culture Officer, Ceridian. “It’s unacceptable that the gender-pay gap remains a persistent issue, with only 53 percent of women believing they are paid equal to their male counterparts. Solving this requires employers to prioritize transparency and lean into new technologies that will help them embrace an equal value approach to pay.”
Sterling added Ceridian offers a Compensation Management solution within Dayforce that brings conscious and unconscious biases to the forefront so they can be addressed, including a gender pay equity graph which compares salaries by role and other influencing factors.
Despite daily anxiety, financial wellness is not a priority among employers
Much has been said about the burden that comes with the rising cost of living and the surge in consumer debt. With the majority of workers carrying personal financial stress into the workplace, payday can be a source of anxiety when compensation doesn’t meet their lifestyle and financial needs.
Respondents said for any large, unexpected expenses, they would have to resort to their credit card (31 percent) or borrow money from family and friends (11 percent), compounding their worries.
The survey shows some employers could probably do more to support their people, with nearly one-third of employees (27 percent) believing their employers do not care about their financial wellbeing, and only a quarter believing they care “very much” (24 percent).
“Companies need to walk the talk and implement employee-centric programs prioritizing financial wellness,” said Sterling. “Not only will these initiatives help attract and retain top talent in today’s competitive job market, it’s simply the right thing to do.”
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Rethinking the traditional pay cycle with on-demand wages
Today’s workforce is heavily comprised of individuals accustomed to meeting their needs with the click of a button. And according to the report, these expectations are also impacting how they want to be paid.
- 59 percent of full-time and part-time employees are currently paid every two weeks.
- However, when asked how they would like to be paid, 37 percent would prefer to be paid weekly, signalling a need for more frequent, regular access to their earned wages.
Solutions such as on-demand pay where employees can request and receive a payout based on all or part of their earned wages are creative and modern payroll options. The research found younger people, those between the ages of 18-34, were more likely to agree to participate (51 percent) in an offering like Dayforce On-Demand Pay.