More than one in three employers see internal equality as the biggest challenge when it comes to remuneration

One-third of employers see challenges in promoting the financial well-being of their staff and reducing financial stress. European employees indicate that a fixed pay increase (44%), variable pay increase (40%) and additional benefits such as health insurance, pension schemes or paid daytime childcare (35%) are the most common initiatives to tackle this issue, although there is no easy solution. Indeed, 28% of employers see the pressure on wage costs as a challenge. As an example, more than half (53%) have seen their total wage costs increase over the past year.

Communication about their remuneration policy (26%) rounds out the top five challenges for employers.  Three out of ten employers actively communicate or report on their remuneration policy. They do this primarily by having individual conversations with employees about their remuneration (32%) or through official internal communication channels (22%). Nevertheless, three out of ten (29%) say they do not send out specific communications about their remuneration policy. As a result, six out of ten (59%) European employees feel insufficiently informed about what their pay package entails.

"There are four important pillars for a successful approach to remuneration", says Bruce Fecheyr-Lippens, Chief People Director at SD Worx. "Start with a strategic reward policy. Our research shows that half of European organisations are already working on this issue, with the UK (60%), Romania (58%) and Poland (58%) leading the way. In today's competitive market, it's crucial to align remuneration with what employees find important. This not only helps you to attract talent, but also to retain it. Six out of ten employees believe salary to be the most important criterion when choosing an organisation. Also make sure you have a good balance between remuneration and labour costs. A mix of financial and non-financial benefits increases employee satisfaction and well-being."

"In addition, personalised and flexible benefits are also essential, and that's something 25% of employers are currently struggling with. Employees want benefits that align with their unique needs and lifestyles, which boosts their productivity. However, less than a fifth (18%) are able to build their own salary package, while 42% would like to have this option. Finally, pay transparency is crucial when it comes to striving for equality on the workfloor. According to the EU Pay Transparency Directive, companies with more than 250 employees must draw up annual reports on the gender pay gap within their organisation. Smaller companies with more than 150 employees have to do this every three years. Yet only a quarter of European organisations currently offer a 'total reward statement. It's a good idea to start by communicating openly about your remuneration policy. This builds trust and creates an honest, transparent workplace where staff feel valued."

SD Worx, the leading European HR service provider, assists organisations with their HR and payroll. SD Worx conducts regular surveys to find out what really matters to employers and employees. The analysis of the most recent survey, the 'Navigator Series', provides organisations with a compass to navigate the challenges set by HR and payroll. The survey was conducted in February 2024 in 18 European countries: Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden and the UK. A total of 18,000 employees were surveyed. The results are weighted and guarantee a reliable representation of the labour market in each country.

In Belgium, this concerns 1,000 employees. For Belgium, results were weighted for language, age, gender, education, company size and region of employment, with the weighting coefficients almost all below 1.7.