The case for equitable compensation

Results from our latest exclusive Page Pulse survey are out. This survey taps into the pulse of the UK workforce by polling 2,000 UK workers to gauge their sentiments and experiences firsthand. So, what’s on their mind?

In brief:

The disparity between effort and reward
The power of equitable compensation and motivating beyond monetary gain
A growing need for effective recognition practices, resources and support from employers

Unveiling the gap between effort and reward

Statistics reveal the average UK employee works an additional three weeks annually, uncompensated, due to expanded remits and increased workloads. Our recent survey revealed a concerning trend: despite shouldering these heavier workloads and investing extra time, a staggering 69% of workers haven't seen a corresponding increase in their pay packets.

In a market where demands are constantly evolving and expectations are soaring higher, one question reigns supreme: how can businesses ensure their employees are motivated to give their all? The answer lies in equitable compensation practices that recognise and reward exceptional effort. The power of equitable compensation.

It is evident that the correlation between effort and reward is not as strong as it should be in many workplaces.

Our research indicates that 50% of workers are primarily motivated by money, underscoring the importance of fair rewards in driving employee performance. But, it's not just about compensation. Employees crave skill development and career advancement too. Half are ready to take on extra responsibilities for learning, while 38% enjoy the opportunity to demonstrate leadership. Organisations must recognise this hunger for growth and reward it accordingly—with both financial incentives and opportunities for advancement in balance.

The impact of equitable compensation extends far beyond financial gain. When employees feel valued and fairly compensated for their contributions, they are more inclined to invest their time and energy in achieving exceptional results.

With almost half (49%) of workers doing more than expected without getting any recognition, like a bonus or extra time off (51%), it’s no surprise that more employees (32%) are actively choosing to turn down additional responsibilities.

Equitable compensation acts as a powerful motivator, fuelling a sense of purpose and commitment among employees.

Five tips for aligning compensation practices

So, what can organisations do to ensure their compensation practices align with employee effort and motivation?

Design transparent and fair compensation structures: Ensure your compensation practices are clear and equitable, reflecting the individual contributions of each employee.
Conduct regular performance evaluations: Regularly assess employee performance to accurately gauge their contributions and adjust rewards accordingly.
Adjust rewards to match extra effort: Ensure that compensation reflects the level of dedication and performance exhibited by employees. Remember, recognition holds significant weight alongside rewards; according to Gallup, 28% of the most memorable recognition comes from an employee's manager. Integrating meaningful recognition alongside appropriate rewards is essential for fostering a culture of appreciation and motivation.
Prioritise communication and transparency: Data from our previous survey revealed a quarter (25%) of workers need clearer expectations of what is needed to get to the next level. Clearly explain pay policies and decision-making to employees, so they understand how their performance affects their rewards.
Provide avenues for feedback: Encourage open communication and feedback channels for employees to express their concerns or suggestions regarding compensation-related matters.

Unlock the full potential of your workforce

By aligning rewards with extra effort, businesses can foster a culture of excellence and drive performance to new heights.

Ready to take the first step towards fair and motivating compensation practices? Download the latest Michael Page salary guides for the latest salary data to help guide your benchmarking for the year ahead and unlock the key to inspiring extraordinary effort in your organisation.