Salary Transparency Report 2018

Salary Transparency Report 2018

Introduction

This report is part of a series of research we do on a regular basis to assist business leaders and
employees make better decisions that uplift the performance of their organisations. The aim of
this particular research was to measure how transparent remuneration is in the market. Our
research study is aimed at giving the reader a better understanding of the general practice in the
market concerning salary transparency.

Recent studies have shown that employees’ negative perception to the pay structure of their
respective companies may prove to be harmful to their performance and motivation. Thus salary
transparency, to a certain extent, tends to affect employee engagement. It has also been argued
that companies who have transparent salaries tend to be considered to be the employers of choice
by the public. Companies with less transparent salaries and pay structures more often have
problems with employee retention.

Summary of Key Finding

* Most of the employees (69 percent) agree with keeping individual salaries confidential.
In other words 7 in 10 employees believe individual salaries should be confidential. This
highlights that the majority of employees are not prepared to disclose their salaries.

*Executives and non-managerial employees are in the same group (by statistical analysis)
which supports the confidentiality of individual salaries policy. This implies that
managers and non – managers share the same sentiments regarding confidentiality of
salaries. They equally want their individual salaries to be kept confidential.

* Most of the participants (93 percent) believe that they are not overpaid in their current
roles i.e. 9 in 10 employees believe they are not overpaid.

* Half of the participants (50 percent) have a good understanding of why they are earning
the salary they are currently earning.

* Most of the respondents (72 percent) highlighted that their salaries are not comparable to
the market i.e. 7 in 10 employees believe their salaries are below the market median.

*84 percent of the respondents perceive their organisations’ salary structures as not
transparent i.e. 8 in 10 employees believe there is lack of transparency in their
organisations regarding salary structures.

* 59 percent of the respondents do not know their salary ranges i.e. 6 in 10 employees do
not know their salary ranges.

* Majority of the participants (70 percent) are not happy with their job grades. In other
words, 7 in 10 employees are not satisfied with their job grades.

* 86 percent of the respondents are prepared to leave their current organisations should
another company offer a better remuneration package. In other words, 9 in 10 employees
have the intention to leave their organisations should another organisation offer better
remuneration.

*63 percent of the participants believe that the differences in salaries between management
and other staff members are not reasonable or equitable. In other words, 6 in 10 employees
argue that the salary gap between management and other staff members is not fair.

Salary Transparency Report for 2018

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