Rampant Pay Cynicism Threatens Companies According to Marsh Report
A new report from professional services firm Marsh highlights growing concerns about employee perceptions of pay fairness. Over 40% of workers now believe they are more likely to receive a raise by leaving and rejoining their company than staying, up sharply from 18% in 2024. This trend is eroding trust between employers and employees and poses significant risks for retention. Investors also appear concerned: 92% said they would reduce or eliminate investments in firms with employee pay issues. The report warns that a disengaged workforce combined with cynicism about compensation systems could undermine organizational performance, agility, and long-term stability. Marsh recommends improving pay transparency, implementing skills-based rewards, auditing job structures, and shifting management focus toward development to rebuild trust among employees.
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Topics: employee pay pay transparency retention strategies workplace trust