Understanding How Compensation Decisions Are Made

by | Apr 1, 2024

Hello culture leaders, here is your weekly challenge for this week.

According to Josh Burson’s 2023 definitive guide to pay equity, employee engagement is seven times more correlated with equity of pay than actual pay. What does that mean? Paying your people more isn’t going to get them more engaged. It’s making sure that they understand how compensation decisions are made and how they can earn more and that they feel it’s fair.

So. Your challenge and whether or not you can actually do this challenge is going to be a particularly interesting one is to ask the people on your team if they understand how compensation decisions are made and how they can earn more. If they don’t, there’s your work in getting your employees more engaged. Good luck.

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