Over half (53%) of employees expect the cost-of-living crisis to be a key consideration in their compensation reviews, according to research conducted by Lattice.
However, just 26 percent of employees said the cost of living was currently a consideration in their company’s compensation review process.
Managers across the UK face a difficult year ahead in navigating employee pay cycles amid rising inflation and market volatility.
Annual increases are not going to satisfy all employees amidst the cost-of-living crisis. They also have specific increases in mind to feel valued.
Nearly 30 percent of employees said they were looking to be evaluated for compensation increases every 3-6 months; assuming good performance, 47 percent of UK employees would need a pay rise of at least 4-5 percent to feel their work was being valued adequately.
Employees see bias, and a lack of action to address it.
Over half (51%) of employees agree that there is bias around gender, age, race or other factors when it comes to the way companies conduct performance and compensation reviews.
Of these, 36 percent say their companies are not doing enough to address it.
Just 30 percent reported that their organization was leveraging technology to measure, and address pay equity gaps.
“A convergence of factors — including increased turnover, rising inflation, volatile markets and the current cost of living crisis — are putting increased pressure on compensation cycles,” said Dave Carhart, Vice President of Lattice Advisory Services.
“This report reveals how employee perceptions around compensation are evolving in the midst of all this upheaval – and provides important insights for leaders who will be tasked with balancing employee expectations alongside shifting business needs.”