Pay Perception May Be More Important to Workers Than Actual Compensation

A new study from PayScale showed that how employees feel about their organization’s approach to pay fairness and transparency had a higher impact on their job satisfaction than the amount they were paid. PayScale surveyed 501,796 workers on which aspects of their job contribute to their satisfaction and retention, and ultimately to their engagement. The research also found that, of the respondents who felt they were underpaid, 90% actually were paid at or above the market rate, and 75% of respondents who think they’re paid on or above the market rate are satisfied with their jobs. Appreciation raised the satisfaction meter higher than any other factor. Also, employees who felt their company was on the rise planned to stay in their job, a factor that even edged out appreciation in terms of boosting retention.