Really interesting insights in Josh Burson’s 2023 definitive guide to pay equity. What does it show? That pay equity is seven times more correlated with employee engagement than pay. What does that mean? It’s not about how much you make that will engage your employees, but rather it’s about the perception that your employees have about how fair their pay is. So if there’s transparency about why they’re getting paid, what they’re getting paid, there’s an understanding about how to earn more.
That’s going to engage your employees more than just giving them an increase in paycheck, which makes sense because according to the World Happiness Report, the number two contributor to people’s happiness is freedom from perceived corruption. Lack of transparency in your organization about pay and compensation decisions can be perceived as corruption, which will then lead to a lack of engagement. Super interesting.