We all complain about our level of pay. Or at least a lot of us have the complaint. It’s hard to imagine Warren Buffett complaining but it’s pretty easy to understand that about ourselves or for the person in the next office or cubicle.
PayScale is a compensation analysis firm and it did a survey of U.S. workers and found 90% think they’re underpaid. That conclusion comes from collecting the salary data of 500,000 people and then asking 7,700 of that number to rate their employers on pay transparency and fairness. Those who find their employers to be fair and transparent in determining pay are happier at work than those who are just paid the going rate for their job.
PayScale’s Chris Martin said the satisfaction of the former group is 5.4-times higher than the latter. “Companies are determining pay in this kind of behind-the-curtain way. Employees are forming opinions and think they are getting a raw deal,” he said.
Martin said employers use a variety of factors to determine pay and a lot of those factors are highly subjective. Complaints by women and non-white races say transparency will force employers to be more transparent and face the inequities that exist in their pay structures.
Many groups representing women and minorities want:
• Laws against asking candidates for jobs what they were paid at previous jobs
• Workers to be informed about what other workers in similar or the same jobs earn
When this happens — Martin said — companies find and correct pay gaps. It is — however — an uphill battle. PayScale said just 6% of the 7,700 employers surveyed say they make all salaries public. Half say they will only tell an employee what they make and will not give them information on the salaries of others.
What the PayScale survey did find to be true is that most of us are not underpaid for what we do.
Source link: Insurance Business America