"Despite 83% of people managers saying they can clearly justify pay and promotion decisions with supporting data, scrutiny of those decisions is widespread. In the past 12 months, over three-quarters report decisions being formally challenged or appealed across promotion allocation (76%), setting or adjusting base pay (78%), and assigning performance ratings that influence pay (78%). Over nine in 10 (93%) managers say a lack of timely and relevant people or financial data contributed to a negative team outcome over the past year."
"30% say it played a large or very large role in a high performer being underpaid or under-recognised, while 27% say it contributed to a promotion being given before the individual was ready. Others report wider business impacts, with 24% saying pay spend was misallocated, and 29% blaming data gaps for a decline in team engagement or morale driven by perceived unfairness or poor recognition."
Most UK people managers (83%) report they can justify pay and promotion decisions with supporting data, yet formal challenges and appeals are widespread: promotion allocation (76%), setting or adjusting base pay (78%), and assigning performance ratings that influence pay (78%). A lack of timely or relevant people or financial data contributed to negative team outcomes for 93% of managers; 30% link it to underpaying high performers and 27% to premature promotions. Additional consequences include misallocated pay spend (24%) and declines in engagement or morale (29%). Many managers worry about inconsistent evaluation metrics across teams (68%) and say a unified view of people and financial data is necessary for fair pay decisions (67%). Challenges stem from ineffective data access despite most managers having timely access to HR (82%) and finance data (75%).
Read at London Business News | Londonlovesbusiness.com
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