New research reveals that 26% of UK employees do not trust their CEO to be ‘open and honest’ – while 24% do not trust their senior leadership to do the same.
Personio, Europe’s HR software company, surveyed 2,000 UK employees, finding that transparency and employer-employee communication in the workplace is pivotal to a positive employee experience.
Research highlights that feeling unheard by leadership could be fuelling employees’ distrust. Over a quarter (30%) of employees surveyed say they are ‘not allowed’ to share feedback to leadership on their experiences. Meanwhile, 46% of employees feel that leadership in their organisation listens and acts on any feedback when given by staff.
In a volatile economy, reward and progression transparency has become more of a focus for employees. 61% do not feel that their current level of pay and remuneration has kept pace with inflation and the cost of living and 56% of employees are more likely to discuss their pay with colleagues due to these factors.
Businesses to recognise the influence that pay, and transparency around pay, will have on employee job satisfaction and the overall employee experience
The data suggests that transparency around pay and other factors, including rewards and promotions, could boost performance. 63% of employees surveyed would be incentivised to work for a promotion if there was more clarity on potential pay and remuneration. Meanwhile, 33% would work harder or be more productive knowing that a promotion, pay rise or bonus was available to them within the next year. Beyond the next 12 months, 26% report a clear timescale or plan for a promotion or pay rise would incentivise them to do the same.
Beyond motivation, the data shows a direct correlation between high levels of transparency in an organisation and employee engagement. The 5% of employees who perceive their organisation to be ‘very transparent’ across several factors (pay at all levels, the results of employee surveys, training budgets and opportunities, and non-salary rewards and compensation) are most likely to report high satisfaction, performance, and, crucially, loyalty compared to other employees surveyed. 91% of these employees report high productivity and motivation at work.
Pete Cooper, Director of People Partners & Analytics at Personio, said: “With the cost of living putting immense pressure on people’s finances, it’s important for businesses to recognise the influence that pay, and transparency around pay, will have on employee job satisfaction and the overall employee experience. While it’s not always practical to raise pay, implementing regular performance reviews, giving timelines for progression, and ensuring people understand their total rewards package beyond their base salary, will help to provide employees with reassurance and motivation. Ultimately this will also build trust and improve overall employee engagement.”