Comp Transparency + Job Security = Success?

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Here’s the thing.

We live in turbulent times.

Inflation is off the roof.

We are seeing mass-layoffs.

And they will probably continue for a while as well.

Is this the moment in time when people should go after safe, (a little boring) employers - i.e stable companies that keep going no matter the economic climate?

Environments where people feel safe?

Maybe.

These stable companies are typically the ones that have strong revenue profits, don’t do layoffs and can provide you with a stable career path within the company for several years.?

Let’s add public sector employers to this group of employers as well.

I mean, that's around 30 % of the job market.

If job security is what you are aiming for, some say that this is the right strategy in these times.

(If you don’t want to go solo and become a freelancer and work with multiple companies or start your own business that is)

We will probably see more of this during this year.

Is it that simple though?

We'll see.

One thing is for sure, what we already are seeing is an increasing demand for transparency on pay.

This has already started in the US market. And most probably we will see more of it in Europe soon as well.?

How About Compensation and Benefits in 2023

So what is the best way to get ahead on Compensation and Benefits this year?

The last 12 months have been demanding for People teams across industries.

HR leaders have had to navigate a wide range of competing pressures - inflation, cost of living, mass layoffs, and a tight labor market.

And on top of that, conversations around compensation have been front and center throughout.

I spoke with Ravio , the free real-time compensation benchmarking tool, and their Chief People Officer, Vaso Parisinou, shares her insights to help you create a compensation offering that will set your organization apart.?

What does Ravio do and what can you tell us about current compensation and benefits trends?

Ravio offers benefits benchmarking, alongside market compensation data, so you can see how your company's benefits package compares to the broader market. This gives you the ability to react to your employees' needs and ultimately grow both retention and your overall culture.

We took a quick look at Ravio’s data, to see how different companies are thinking about their benefits packages.

Can you give us a quick glance at some compensation trends?

Sure, these are the 3 latest trends you should keep an eye on.

1. Ask your people ?? It’s not just about the money?

With tightening budgets, and an emphasis on profitability, tech companies will have to start thinking more broadly about compensation.

And compensation doesn’t just mean the salary someone receives on payday.?

It can be tough to know which benefits are considered standard or indeed competitive in the market. For this, you will need to dig into your compensation data, likely with a compensation platform like Ravio.

And why not going straight to the source, and “ask your employees outright.” Don't be surprised by the difference between what HR and leadership perceive to be amazing benefits and what employees actually value.?

2. Transparency is coming?

This movement is already happening - check out the viral TikTok account European Income showcasing people's willingness to share their salary with millions of viewers.

In the US, pay transparency laws are becoming the norm, and there’s a move in Europe towards this too.

Regardless of your company’s approach to sharing compensation information internally or externally, the world is rapidly moving into an era of salary transparency.

Companies that accept this and own it through clear, transparent strategies will be the employers of choice.

3. Data can help you succeed

To craft a competitive compensation strategy, you’ll need data to support you.

That starts with getting your own internal data as accurate as possible.

Make sure your HRIS is up to date and contains all the data inputs you’re interested in.

You need to build the foundations of your home before choosing a carpet. Your HRIS should be the scaffolding.

Once you’ve got your own reporting in order, you can start to add external data sources to guide your decision making.

That might be salary benchmarks, guidance on benefits offering, or diversity reporting to help you add context on gender pay gaps.?

Ravio just launched in both the Netherlands and Sweden.?

Thoughts?

As we move forward, I can’t wait to see more transparency on pay and benefits.

Question: What’s your view on pay transparency?

Which companies does this well already?

Let me know in the comments ??

Hope you enjoyed this week’s newsletter! See you next week ??

Whenever you're ready, there are 3 ways I can help you:

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