90% of employees in SME companies have never raised concerns about their pay, according to new research carried out by Croner Reward on behalf of Peninsula Business Services, experts in employment law, HR and health & safety.
Assessing Peninsula’s client base and advice records Croner Reward found that just 10% of employees raised a grievance about their salary against their employer in 2015.
Viv Copeland, Head of Croner Reward says: “This research is actually surprising given the current pay climate. Last year the Employment Tribunals dealt with a flood of cases dealing with the issue of whether to include ancillary payments such as overtime and commission when calculating holiday pay. In addition the Court of Justice of the European Union (CJEU) ruled that time spent travelling to and from appointments by workers without a fixed place of work should be regarded ‘working time’. These high profile cases really put pay in the spotlight and what should and shouldn’t be included.
“In addition in April 2016 the Living Wage will become law which will mean a boost of 50p an hour for workers aged over 25 who are currently paid the National Minimum Wage (NMW) which will again put pay under the spotlight. This is obviously good news for employees, however we expect there to be some conflict between those who get the rise and those that stay the same, particularly where pay is used as a benefit or reward. From what we have seen employers are unlikely to give all employees a raise, so they will need to find other ways of motivating and rewarding their employees.”
Peter Done, Managing Director at Peninsula Business Services says: “Pay is arguably one of the most sensitive subjects within the employer-employee relationship. The fact that such a high percentage of those employed by SME companies are happy with their pay speaks volumes for how business owners are approaching the employee engagement dynamic. While pay is an important aspect for many workers, their employers also need to consider how investing into their employees outside of the monetary gains may also positively impact employee satisfaction. Training opportunities, mentoring and inspiring work environments are just a few examples of this.”