Pay still drives employee attraction and retention, but current pay programs fall short
According to WTW's 2024 Pay Effectiveness and Design Survey, only about half of global employers effectively deliver on core pay program objectives, despite pay being the primary factor in employee attraction and retention. The survey reveals that 48% of employees cite pay as the main driver for attraction and retention, and 56% would consider another job offer for better pay.
The study highlights that fewer than one in four employers effectively communicate how employee pay is determined, while 58% report salary compression as an issue. Among companies updating their compensation philosophy, 69% cite enhanced attraction/retention as the primary reason, followed by improved employee experience at 51%.
Secondo l'Indagine sulla Efficacia e Progettazione dei Compensi 2024 di WTW, solo circa metà dei datori di lavoro globali riesce a raggiungere efficacemente gli obiettivi principali dei programmi retributivi, nonostante il salario sia il fattore principale nell'attrazione e nella retention dei dipendenti. Il sondaggio rivela che il 48% dei dipendenti cita il salario come il principale fattore per l'attrazione e la retention, e che il 56% prenderebbe in considerazione un'altra offerta di lavoro per un compenso migliore.
Lo studio evidenzia che meno di uno su quattro datori di lavoro comunica efficacemente come viene determinato il salario dei dipendenti, mentre il 58% riporta la compressione salariale come un problema. Tra le aziende che aggiornano la loro filosofia di compenso, il 69% cita il miglioramento dell'attrazione/retenzione come motivo principale, seguito dal miglioramento dell'esperienza dei dipendenti con il 51%.
Según la Encuesta sobre Eficacia y Diseño de Compensaciones 2024 de WTW, solo aproximadamente la mitad de los empleadores globales logra cumplir efectivamente con los objetivos del programa de salarios, a pesar de que la compensación sea el factor principal en la atracción y retención de empleados. La encuesta revela que el 48% de los empleados citan el salario como el principal motivo para la atracción y retención, y el 56% consideraría otra oferta de trabajo por un mejor salario.
El estudio destaca que menos de uno de cada cuatro empleadores comunica efectivamente cómo se determina la compensación de los empleados, mientras que el 58% reporta la compresión salarial como un problema. Entre las empresas que están actualizando su filosofía de compensación, el 69% cita la mejora en la atracción/retención como la razón principal, seguido por la mejora de la experiencia del empleado con el 51%.
WTW의 2024 연봉 효과성과 설계 설문 조사에 따르면, 전세계 고용주의 약 절반 정도만이 근본적인 보상 프로그램 목표를 효과적으로 달성하고 있으며, 보상은 직원의 유치 및 유지의 주요 요소입니다. 설문 조사에 따르면 48%의 직원이 보상을 유치 및 유지의 주요 요인으로 꼽으며, 56%는 더 나은 보상을 위해 다른 일자리를 고려할 것입니다.
이 연구는 4명 중 1명 미만의 고용주만이 직원 보상 결정 방식을 효과적으로 전달하고 있으며, 58%는 급여 압축을 문제로 보고하고 있음을 강조합니다. 보상 철학을 업데이트하는 기업 중 69%가 매력/유지 향상을 주요 이유로 꼽았고, 51%는 직원 경험 개선을 뒤따랐습니다.
Selon l'enquête sur l'efficacité et la conception des salaires 2024 de WTW, seul environ la moitié des employeurs mondiaux atteint efficacement les objectifs des programmes de rémunération de base, bien que la rémunération soit le principal facteur d'attraction et de rétention des employés. L'enquête révèle que 48% des employés citent la rémunération comme le principal moteur de l'attraction et de la rétention, et que 56% envisageraient une autre offre d'emploi pour un meilleur salaire.
Cette étude souligne que moins de un employeur sur quatre communique efficacement sur la façon dont la rémunération des employés est déterminée, tandis que 58% signalent la compression salariale comme un problème. Parmi les entreprises qui mettent à jour leur philosophie de rémunération, 69% citent l'amélioration de l'attraction/la rétention comme le principal motif, suivi par l'amélioration de l'expérience des employés à 51%.
Laut der WTW-Umfrage zur Pay Effectiveness and Design 2024 erreichen nur etwa die Hälfte der globalen Arbeitgeber die Ziele der Kernvergütungsprogramme effektiv, obwohl das Gehalt der Hauptfaktor bei der Anwerbung und Bindung von Mitarbeitern ist. Die Umfrage zeigt, dass 48% der Mitarbeiter das Gehalt als den Hauptgrund für die Anwerbung und Bindung angeben, und 56% würden ein anderes Jobangebot für ein besseres Gehalt in Betracht ziehen.
Die Studie hebt hervor, dass weniger als einer von vier Arbeitgebern effektiv kommuniziert, wie das Gehalt der Mitarbeiter bestimmt wird, während 58% von Gehaltskompression als Problem berichten. Unter den Unternehmen, die ihre Vergütungspolitik aktualisieren, geben 69% an, dass die Verbesserung der Anwerbung/Bindung der Hauptgrund ist, gefolgt von einer verbesserten Mitarbeitererfahrung bei 51%.
- Survey confirms pay remains the primary factor for employee attraction and retention
- 69% of companies updating compensation philosophy focus on enhancing attraction/retention
- Only half of employers effectively deliver on core pay program objectives
- Less than 25% effectively communicate pay determination to employees
- 58% report salary compression issues
- 56% of employees would consider leaving for better pay elsewhere
Insights
The WTW survey reveals significant challenges in corporate compensation strategies, with only about
Most concerning is that only
The data points to a critical misalignment between compensation strategies and employee expectations. Salary compression, poor communication and ineffective pay programs create a perfect storm for talent retention challenges. The fact that companies are struggling with all six core objectives of pay programs indicates fundamental structural issues in how organizations approach compensation.
The timing of these findings, ahead of salary-increase season, presents both a challenge and opportunity. Organizations need to revamp their compensation philosophies, improve transparency and address salary compression to maintain competitiveness in the talent market.
NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- About half of global employers report they are effectively delivering on each of the six individual core objectives of pay programs, despite pay being the most commonly cited reason employees join and stay with an employer. This is according to the 2024 Pay Effectiveness and Design Survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.
The survey found that of the six core objectives related to pay program effectiveness — driving employee attraction, driving employee retention, promoting fair compensation among employees, promoting competitive compensation compared to employees at other organizations, aligning with business strategy, and rewarding employees for current-year performance — about half of employers report that they are effective at two of these objectives and fewer than half are effective at each of the other four.
Yet, related research shows that
This disconnect is likely in part due to changes that have affected the nature of work over the past several years. Labor market conditions, such as talent shortages, generational shifts, and new work models, have contributed as well as socio-economic trends like the global pandemic and high inflation.
In addition to these external factors, lack of communication internally impacts overall pay effectiveness. Fewer than one in four say they are effective at communicating how employee pay is determined. Moreover, over half of employers (
“Organizations likely haven’t been able to focus on the factors that drive pay program effectiveness for the past few years given the recent dynamics of the labor market,” said Lori Wisper, Managing Director and Work & Rewards Global Solutions Leader, WTW. “As current economic conditions have eased the labor market pressures, companies should take the opportunity to make the necessary changes to address those factors. Companies should start with updating their compensation philosophy, because it is critical for pay program effectiveness and can contribute to improved retention of key talent, employee productivity, and financial performance.”
Among companies that have updated their compensation philosophy in the last five years, the most commonly cited reasons for those changes are to enhance attraction or retention (
“With salary-increase season approaching, it’s an ideal time for companies to assess how their pay programs support values, ensure they align with the business strategy, and start improving the effectiveness of these programs to future-proof their workforce,” added Wisper.
About the survey
The 2024 Pay Effectiveness and Design Survey was conducted from May to June of 2024. Nearly 1,900 companies, representing more than 30 million employees across 65 countries, responded. In the U.S., 332 organizations responded.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
Media contacts:
Ileana Feoli
Ileana.feoli@wtwco.com
Stacy Bronstein
stacy.bronstein@wtwco.com
FAQ
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