POSTED: April 13 2016
GLASSDOOR SALARY SURVEY FINDS MORE THAN 1 IN 2 EMPLOYEES GLOBALLY FEEL THEY MUST SWITCH COMPANIES TO RECEIVE A MEANINGFUL PAY INCREASE

GLASSDOOR SALARY SURVEY FINDS MORE THAN 1 IN 2 EMPLOYEES GLOBALLY FEEL THEY MUST SWITCH COMPANIES TO RECEIVE A MEANINGFUL PAY INCREASE

Glassdoor® has unveiled the results of its Global Salary Transparency Survey, which reveals nearly half of employees globally (47%) say their companies still do not share pay data internally. Furthermore, the majority of employees globally (69%) wish they had a better understanding about what is actually fair market compensation for their position and skill set at their company and local job market, and more than half (56%) believe they must switch companies in order to make a meaningful change in their compensation. Released on Equal Pay Day, the survey also reveals fewer women understand how pay is determined at their company than their male counterparts (53 percent vs. 65 percent, respectively). The Glassdoor survey polled 4,300 adults employed full-time/part-time in seven countries (the United States, Canada, United Kingdom, France, Germany, the Netherlands, and Switzerland).

“Even in 2016, most employees—especially women—remain in the dark about what fair pay is for their particular role. The majority of employees report their companies do not share pay data internally even as most employees believe salary transparency is good for business and employee satisfaction,” said Dawn Lyon, Glassdoor vice president of corporate affairs and chief equal pay advocate. “Employers need to understand that perpetuating salary sharing taboos can ultimately impact retention. More than half of employees around the world feel that in order to get a significant raise they need to jump to a new company. Our data shows by helping employees understand fair pay and providing clear pathways for advancement, employers can increase employee satisfaction, engagement and retention.”

Perception among employees appears to be that the grass is greener elsewhere, as many believe they could earn more at another company. Close to half (49 percent) of U.S. employees feel they must switch companies in order to obtain any meaningful change in compensation. Among U.S. employees, Millennials ages 25-34 (57 percent) and Generation X’ers ages 35-44 (58 percent) and those ages 45-54 (53 percent) are more likely to believe they need to change companies to make more money compared to those 55+ (32 percent). More employees in France (64 percent) feel they must switch jobs to obtain meaningful compensation changes than those in all other countries surveyed except Germany.

Times are changing, but sharing salary information among employees at a company is still not the norm, and the U.S. is behind when compared to other nations. More than one-third (36 percent) of employees globally say they know their company discloses salary information internally. Fewer U.S. employees say their company discloses salary information (31 percent) than employees in the Netherlands (50 percent), U.K. (45 percent), and in Canada (45 percent).

Employed men in the U.S., France and Germany are more likely than their female counterparts to say their employer shares information about pay levels within the company. (In the U.S. 38 percent of men vs. 23 percent of women; France 42 percent of men vs. 23 percent of women; Germany 35 percent of men vs. 20 percent of women.) The differences along gender lines raises questions related to whether men have access to more salary data than women, if they perceive to have more knowledge about salary at their company (vs. actually having pay insights), or if they are asking more direct questions of leadership regarding pay levels.

Globally, the majority of employed adults (70 percent) believe salary transparency is good for employee satisfaction and approximately the same percentage (72 percent) believe it is good for business.

The survey also uncovers that globally, employees have a lack of understanding about how their pay stacks up in the market: More than two-thirds (69 percent) of employed adults across the globe wish they had a better understanding of what fair pay is for their position and skill set at their company and in their local market. More than one-third (36 percent) indicated they do not have a good understanding of how people are compensated at all levels within their company. More Canadian employees (71 percent) report having a good understanding of pay levels at their company than any other country in the survey (U.K. 61 percent; U.S. 60 percent; the Netherlands 56 percent; France 52 percent; Switzerland 49 percent; and Germany 43 percent).

Clarity around compensation practices is divided along gender lines. Globally, more employed men (59 percent) than employed women (51 percent) believe they have a good understanding of how people are compensated at all levels in their company. In the U.S. the divide is larger with 65 percent of employed men who believe they have a good understanding of compensation levels in their company, compared to 53 percent of employed women.

Glassdoor currently holds approximately 12 million workplace reviews, ratings and insights, including millions of salary reports, on more than 540,000 companies[1] around the world. Glassdoor has also recently conducted several research reports and surveys diving deep into the topic of pay and salaries.

Full press release on www.glassdoor.com