After a raise, what’s most important to workers?

With all the talk about workers wanting flexibility, one thing remains dearest to workers’ hearts – salary.

Salary (61 per cent) sits at the top of the list of the most important parts of a job, way ahead of job security (43 per cent) and career progression (40 per cent), according to a new report from the ADP Research Institute.

Enjoyment of the day of work (37 per cent) and the flexibility of hours (29 per cent) rank lower, though they are more important than training and development (23 per cent), flexibility of location (17 per cent) and job title (12 per cent).

Government employees across Canada working in federal, provincial and municipal sectors, are being paid considerably higher wages than private sector workers.

Pay increases

Over six in 10 (62 per cent) of workers globally got a pay increase between one per cent and over 15 per cent in the past 12 months, and 83 per cent expect to get an increase within the next year, according to the ADP report.

Globally, workers expect an increase of 8.3 per cent. This, however, differ in different regions:

• 10.3 per cent in Latin America
• 8.5 per cent in Asia Pacific
• 6.6 per cent in North America
• 6.3 per cent in Europe

But if employers are not in a position to award salary increases or bonuses, what other kind of compensation might satisfy workers?

Almost four in 10 workers would be happy with additional paid leave (39 per cent), while shorter working weeks (32 per cent), grocery or shopping vouchers (28 per cent) or a one-off payment to help with the cost of living (26 per cent) are next on the list, according to ADP.

“Companies that take an innovative approach to finding new (and potentially more cost-effective) ways of rewarding staff in difficult financial circumstances could find that there are benefits on both sides,” says ADP.

Underpaid, incorrectly paid

Despite the importance of pay, employers seem to be overlooking it at times.

In fact, 43 per cent of workers globally say they are always, often or sometimes underpaid, based on ADP’s survey of 32,612 workers in 17 countries around the world, including 3,850 in North America, conducted between Oct. 28 and Nov. 18, 2022.

This is nearly even across regions:

• 43 per cent in Asia Pacific
• 45 per cent in Europe
• 44 per cent in North America
• 44 per cent in Latin America

About a third (32 per cent) globally are also incorrectly paid (e.g., failed payments, incorrect tax code etc.) always, often or sometimes. This is true for 32 per cent of workers in Asia Pacific, Europe and north America, and 24 per cent of workers in Latin America.

Seven in 10 (71 per cent) workers say that they have access to their pay information online, enabling them to keep an eye on when and how much they’re being paid.

This, however, is not enough, says ADP.

“Theoretically, this should make it easier to spot discrepancies and anomalies. In reality, it’s not always easy for workers to know whether they’re being paid correctly, given complexities in areas such as tax codes, accounting for part-time hours: overtime or flexi-time or the way bonuses are calculated. Making sure payments are accurate is essential. If not, it could destroy employee trust.”

Recently, British Columbia introduced new pay transparency legislation that will require all employers to include wage or salary ranges in all publicly advertised jobs.

Paying workers incorrectly can be costly to employers, according to Unique IQ, a payroll systems provider to care homes. This, they say, can result in:

• Loss of employee trust
• Time wasted dealing with corrections and inquiries
• Harm to morale
• Tax complications
• Reputation damage.