Introducing the new TribeHR Pay Raise Index and the Question of Fair Pay

Posted on November 15, 2012 by Leave a Comment

Pay raises are a great economic indicator, signalling that business is healthy and employees are reaping the rewards for their hard work and contributions. And any of us who’ve been lucky enough to receive a pay raise know how deeply satisfying a part of our career journey it is, not to mention putting food on the table and paying the mortgage.

At TribeHR, we’re also interested in pay raises and their macro role in impacting a company’s workplace culture, as well as its hiring and retention potential. Today we’re introducing the TribeHR Pay Raise Index, a gauge of social HR health and opportunity, in order to get a snapshot of how workplaces are recognizing employees and doling out the dough.

To create the Index, we analyzed salary and workplace recognition (“kudos”) data from 20,000 employees at 2,200 small to medium-sized companies between Q1-Q3 2012. Our key research finding was that women are actually beating men when it comes to the number of raises being handed out. We determined that 7.4 percent of women received raises compared to only 6.2 percent of men.

When analyzing the size of these pay raises, however, it was clear that men are getting bigger raises than their female peers. In fact, men are three times more likely to earn a salary increase in excess of 25 percent. Looking at pay raises of 5 percent or more, 60 percent went to men and just 38 percent to women.

Fair pay? Not so much.

We were also keen to analyze the correlation between formal recognition for employee accomplishments and the likelihood of receiving a pay raise. Now, it would be natural to believe that kudos from a manager would up your chances of a raise. It turns out that this is not the case. According to our data, peers gave 85 percent of documented employee recognition, and it’s this peer-to-peer recognition that increases the likelihood of earning a pay raise (two to three times!).

Our chief takeaway: employee satisfaction and workplace culture play an increasingly large role in a business’ brand reputation. Those who pay fairly while amply recognizing employee contributions will reap the benefits when it comes to hiring and talent retention.

We created the following infographic to illuminate the findings of the first TribeHR Pay Raise Index:

TribeHR Payraise Infographic

To read today’s full press release, click here.

comments powered by Disqus

Experience TribeHR for Yourself
Contact us to schedule a demo of TribeHR.

Book A Demo
The Latest from Workplace Tribes
20 Secrets of the World’s Greatest Coaches July 30, 2014
How to Keep Calm and Carry On at Work July 28, 2014
Forging Alliances between Employees and Employers July 25, 2014
7 Tips for Making the Most of Hiring Grants July 23, 2014
A Funny Thing Happened on the Way to the Job Fair July 21, 2014
 
Managing Rumors and Gossip in the Workplace July 18, 2014
The Impact of Drugs and Alcohol in the Workplace July 16, 2014
Five Things That Will Kill Your Vacation July 14, 2014
Forget Global: What Happens When the Workforce Goes Galactic? July 11, 2014
Slow Down: Multitasking Is Bad For Productivity July 09, 2014