Wage transparency: only one in three companies wants to make wages public

The majority of companies in Switzerland do not want to make their employees' wages public, and half of employers see employer branding as an important recruitment tool. However, every third company is in favor of salary transparency.

A majority of Swiss companies still do not want to make wages transparent. (Image: Unsplash.com)

Even though wage transparency is increasingly promoted in Switzerland and desired by job seekers, the JobCloud study in collaboration with the LINK Institute revealed that 61% of the companies surveyed are currently not prepared to publicly disclose the wages of their employees. Overall, only one-third of companies would be willing to take this step. Large companies and microbusinesses show more willingness in this direction. "It is probably easier for large companies because they have structured salary processes, for example in the form of defined salary bands," explains Davide Villa, CEO of JobCloud.

Differentiate yourself through wage transparency

If companies speak out against transparent salaries, then according to the survey a good 60% do so because salary transparency is not yet guaranteed within the company either. Just under 30% are against it because employees' salaries vary widely. "Companies that communicate their wages transparently can stand out from other employers in the recruiting process and thus receive more suitable applications. One benefit of wage transparency in job advertisements is that only candidates who agree with the stated wage will apply," Villa adds.

You culture in more and more companies

One area of the study deals with the corporate culture and how employees interact with each other. Here, an informal "Du" culture seems to be becoming increasingly prevalent. Overall, three quarters stated that a Du culture is cultivated in the company, whereby a clear cultural difference between German-speaking and French-speaking Switzerland is evident: While 81% in German-speaking Switzerland use the "Du" form of communication, "only" 62% on the other side of the Röstigraben do so. In French-speaking Switzerland, a distinction is made much more according to hierarchy level - 27% say that it depends on the hierarchy level, while this only plays a role for 11% in German-speaking Switzerland. The "you" culture is least widespread in large companies (70%), while it is most widespread in small companies (81% in micro and 84% in small companies).

Employer branding also an issue for small companies

The study also shows that although employer branding is used heavily by companies, its full potential has not yet been tapped. Just under half of the HR managers surveyed said that employer branding is important or very important for recruitment. This value increases as the size of the company increases. In contrast, 19% of the respondents attach no or hardly any importance to their own employer brand. While employer branding is primarily handled by the HR department at large and medium-sized companies, it is a management issue at small companies. "Especially in times of a shortage of skilled workers, small companies should also try to position themselves as attractive employers through an employer branding strategy," concludes Villa's recommendation.

Source: www.jobcloud.ch

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