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“With pay transparency on the rise, employers will face mounting pressure to not only explain, but also defend employee pay levels relative to the market and peers,” Johansson said.

.; ;Ratings for a manager’s direct reports are relatively the same.; From this simplified view, it’s easy to see how biased ratings make it impossible for an employer to accurately assess organizational performance levels.

With the clawback provisions still relatively new, panelists said it is too early to evaluate their full impact.; ;Stakeholder engagement.

“The unemployment rate has been relatively stable because layoffs are low,” Nancy Vanden Houten, the lead U.S. economist at Oxford Economics, told Reuters .

Step 3: The Market When using salary survey data, your market philosophy will define your competitors (how you cut the data), and your compensation philosophy will guide how you choose to pay relative to those competitors.

While the sample sizes are relatively small, we find that pay raises for those with a higher performance rating (”exceeding expectations”) were greater than those who merely “met” performance expectations.

Few organizations have achieved their aspirations in terms of their position relative to market or their internal consistency on the appropriate pay for each employee’s role and contribution.

A quick fix for this problem is spot checking the market competitiveness of the salary and total target compensation for sales roles relative to your peer group.

“The best employers step back to explain what previously happened only behind the curtain, including how the company positions employee pay relative to the market, how pay ranges are developed, or how decisions about individual pay are made,” Vallas said.

As employees — whether they are gig workers, part-time or full-time — gain access to more information about a company’s pay ranges and levels plus where their individual pay fits relative to those, employers will need to ensure that they have a coherent message to all of these employee segments, Frost said.