Willis Towers Watson's poll of 360 corporate executives and compensation professionals during a mid-September webcast revealed employee reaction as the #1 concern about the impending pay ratio disclosure. Specifically, 50% reportedly identified employee reaction as a top concern, and 49% said their greatest challenge was forecasting employee reaction.
The firm's post shares these additional highlights specifically relating to employee messaging:
- 48% of respondents haven’t considered how or even if they will communicate the pay ratio to employees.
- Only 14% have created a detailed communication plan to educate employees, and a similar number are not planning to say anything to employees.
- Just 16% are prepping managers to be able to discuss the results of their pay ratio with employees, although 39% are preparing leadership to respond to employees’ questions.
These additional poll results are also noteworthy:
- Additional challenges cited included: determining the consistently applied compensation measure (39%), accurate pay data (38%), deciding how to craft the required disclosure (37%), and benchmarking the company's pay ratio against peers, the industry and the market (35%).
- 20% of respondents were most concerned about media reaction.
- 16% were most concerned about shareholder reactions.
- There reportedly was very little concern over CEO or customer reactions.
- 40% of companies were considering using statistical sampling.
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This post first appeared in last week's Society Alert. Access numerous additional resources on our Pay Ratio topical page, and watch for more pay ratio information and resources in this week's Society Alert!
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