1、2023 Compensation Best Practices ReportManufacturing Edition The storm of the last few years is subsiding and the labor market is calming down.However,the economy is still in flux,and compensation strategy and transparency are only becoming more important.Payscales flagship report for compensation p

2、rofessionals,HR leaders,and business executives distills data and insights from the largest known survey focused on compensation management best practices.The Manufacturing Edition highlights how employers in this industry are responding these many challenges while focusing on the goal of making sus

3、tainable changes to compensation management to promote fairer,more transparent pay as we all adapt to a new landscape of work.22023 CBPR:Manufacturing Edition| 04Executive perspective15One trusted data platform10Compensation planning05Highlights:Manufacturing Edition17Trending topics and top priorit

4、ies25Methodology 06Strategy and preparedness for comp challenges13Salary data and market pricingTable of contentsThis 2023 Compensation Best Practices Report(CBPR):Manufacturing Edition shares insights and data based on 351 survey responses from manufacturing organizations.This report is intended to

5、 support employers in this sector by highlighting the most relevant compensation trends and data from the overall report as they relate to the manufacturing market.Depending on the topic,we have also included comparisons to“overall”responses from the full 2023 CBPR.Overall survey respondents spanned

6、 the globe and included organizations of various sizes from one employee to 50,000 or more.Download the full CBPR report here.42023 CBPR:Manufacturing Edition| Executive perspectiveRuth Thomas Chief Product Evangelist,PayscalePolitical upheavals,financial volatility,and the challenges of the increas

7、ing globalization of the economy led to a rapidly evolving environment during 2022,with manufacturing organizations having to adapt at pace to the changing dynamics of the business landscape.We saw headlines about strikes,high levels of inflation,and rising interest rates,yet labor markets remained

8、persistently tight.For those of us working in HR and total rewards,the centers of focus were pay and pay progression.Employees heightened ex-pectations for higher pay against the backdrop of rising living costs and a decline in real wages prompted employers to respond.These responses drove record le

9、vels of wage growth,which led to concerns of pay compression and pay equity.As a result,we saw many manufacturing organizations(40 percent)adapting their compensation strategies.Facing todays many compensation challenges requires a level of compensation maturity,and our study revealed that 34 percen

10、t of enterprise organi-zations were at an“advanced”or“optimizing”level in Payscales compensation maturity model.We also see that more than half(56 percent)of manufacturing organizations were still at the“developing”or“emerging”stages.Ultimately,the approach to compensa-tion maturity drives the abili

11、ty to contribute strategic value and an increased return on compensation investment.Companies across industries are facing massive gaps when it comes to vital future skills.For manufacturers,this is a more acute issue because the manufacturing workforce is shrinking.We see in our results that 29 per

12、cent of manufacturing organizations have an approach to classifying skills,and 10 percent have a skills taxonomy across the whole organization.This is not surprising,as the significant loss in human capital is making it essential for these employers to understand any skill shortages.Adopting skills

13、taxonomies will help drive the transition to skills-based organizations in a bid to secure a pipeline of future talent.Following the“great homeworking experiment”of the pandemic,workplace flexibility is fast becoming an integral part of an organizations employee value proposition.Employees are now m

14、aking deliberate choices based on their own work environment preferences.This has challenged manufacturing business leaders,as they are more likely to require more onsite operations.As a result,our data indicate they are more likely to have a workforce location strategy split by job type,which cause

15、s issues of complexity when it comes to managing compensation for these different employee groups.The Manufacturing Edition of Payscales 2023 Compensation Best Practices Report highlights how employers are responding to these many challenges while focusing on the goal of making sustainable changes t

16、o compensation management to promote fairer,more transparent pay as we all adapt to a new landscape of work.Highlights:Manufacturing EditionThese highlights represent survey responses from manufacturing organizations.say their organization is not interested in pay equity analysis because they arent

17、prepared to do it;another 21%say they measure pay equity and dont have a problemsay that pay transparency legislation is driving their organization to rapidly try to improve their pay data,pay structures,and pay equityof manufacturing organizations say pay equity analysis is a planned or current ini

18、tiative Pay equity and pay transparency26%38%63%is the org-reported average total turnover rate;20%is the average voluntary turnover rateare not concerned about“quiet quitting”and believe that it is mislabeled work/life balanceof manufacturing organizations cite compensation as most to blame for hig

19、her voluntary turnover The labor economy 27%54%36%say compensation will be a higher-priority investment in 2023 think retention will be more challenging,and 56%think compensation will be more challengingsay they will purchase compensation management software for the first time in 2023,and 14%will be

20、 evaluating the compensation software they already haveof manufacturing organizations think recruiting will be more challenging in 2023HR and comp management predictions52%60%10%69%of manufacturing organizations compensate for competitive skillsSkills-based workforce53%are interested in using geogra

21、phic differentials as part of their future pay strategyof manufacturing organizations are experiencing resistance from employees around returning to officesRemote work and geographic pay strategy46%32%have a person or team dedicated to the function of comp a key differentiator in compensation manage

22、ment maturity and readiness for comp strategyof manufacturing organizations have a compensation strategy/philosophy;31%are working on oneStrategy and preparedness54%54%are concerned about pay compression;39%are actively addressing it are giving pay increases over 5%in 2023 have been impacted by rece

23、nt minimum-wage increases and/or proposed minimum-wage legislation of manufacturing organizations are giving pay increases of over 3%in 2023,which is higher than the overall CBPR report(56%)Pay increases55%12%23%62%use salary data from traditional publishers,and 40%use HR-reported aggregate market d

24、ataof manufacturing organizations use free or open online salary data Salary data and market pricing44%57%Participate in next years Compensation Best Practices Survey For the past 14 years,Payscales Compensation Best Practices survey has collected data from compensation and HR professionals around t

25、he globe.By participating,youll receive an early copy of the results and will support peers and help democratize data for all.Put me on the list for 2024Sign up to participate next year.62023 CBPR:Manufacturing Edition| Have you or will you adjust your compensation strategy for 2023?YesNoUndecided55

26、%20%25%35%40%25%Does your company have a formal compensation strategy/philosophy?Have you or will you adjust your compensation strategy for 2023?Strategy and preparedness for comp challengesTo meet the challenges ahead,organizations need to invest in people strategy including compensation,which 36 p

27、ercent of manufacturing organizations said was most to blame for higher voluntary turnover in 2022.More than half(54 percent)have a formal compensation strategy/philosophy and 31 percent of manufacturing organizations are working on one.In 2023,35 percent of manufacturing organizations plan to adjus

28、t their strategy.UnsureYesNo,but we areworking on oneNo,and we arenot working on one54%31%10%4%YesNoUndecided55%20%25%35%40%25%Data represents manufacturing organizations.Data represents manufacturing organizations.72023 CBPR:Manufacturing Edition| Compensation maturityA useful tool for improving yo

29、ur approach to compensation is to identify your“current state”of maturity and what you need to do to move to a“future state.”A maturity model whether you create your own or use one of ours can help HR communicate with executive leaders and business partners about the investments needed to achieve ce

30、rtain goals as well as the outcomes of doing so.A third of manufacturing organizations(34 percent)say they are mature enough to be“advancing”or“optimizing”their pay practices in 2023,which is similar to organizations overall(33 percent).0%compared to 13%overallcompared to 21%overallcompar

31、ed to 34%overallcompared to 21%overallcompared to 12%overall22%34%24%10%We havent begun standardized compensation processes and rely exclusively on free data sources.As neededWe have begun developing a few key compensation processes and do our best to use some consistent approaches when researching

32、salary data.EmergingWe have standardized our approach to accessing and managing salary data.We have or are in the process of creating a compensation philosophy and/or compensation strategy and arebuilding formal structures and processes with supportive tools/technology around compensation planning a

33、nd management.DevelopingWe have reliable,standardized compensation data sources that are strategically tailored to our organization.We have a strong compensation philosophy and strategy and formal structures for most or all of our occupations as well as processes and tools that help us manage pay.Ad

34、vancingWe are confident in our data sources,compensation strategy,and structures,and we are in a position to continuously optimize our approach as well as to tackle or maintain bigger initiatives like pay equity,pay transparency,and pay-for-skills.OptimizingWhich of the following best describes your

35、 organizations compensation management maturity?Data represents manufacturing organizations.25%27%30%25%6%2%36%43%4%3%Yes|we have one dedicated compensation professionalYes|we have multiple people dedicated to the function of compensationYes|we have more than 10 people dedicated to the function of c

36、ompensationNo|we have no dedicated compensation professionals in our organizationUnsureOverallManufacturingDedicated compensation function Having a dedicated compensation person or team is a key differentiator when it comes to compensation maturity.Historically,however,many organizations in general

37、lack this.According to the 2022 CBPR,only 44 percent of organizations overall had a person or team dedicated to compensation.Like many other things,thats changed dramatically for 2023.According to this years survey results,61 percent of organizations overall have one person or more dedicated to comp

38、ensation.When it comes to manufacturing organizations,54 percent report they have dedicated staff in the compensation function.2023 CBPR:Manufacturing Edition| 8Dedicated compensation functionDoes your organization have a person or team solely dedicated to the function of compensation (rather than a

39、n HR generalist that occasionally supports comp)?Data represents manufacturing organizations.92023 CBPR:Manufacturing Edition| 2023 CBPR:Manufacturing Edition| 9Will you be purchasing or evaluating compensation management software(e.g.,survey management,structure building,pay equity,pay reports,benc

40、hmarking,etc.)in 2023?We will be evaluating the compensation management software we use today against alternative providersWe will be purchasing compensation management software for the first timeWe will continue to use the compensation management software we have in place todayNo,we do not plan to

41、use compensation management software in 2023Unsure32%28%16%14%10%Data represents manufacturing organizations.Compensation management software In addition to understanding which organizations have a dedicated compensation function,we also wanted to know if any would be purchasing,changing,or planning

42、 not to use compensation management software in 2023.Implementing technology supports the creation and execution of processes that help organizations move up the compensation maturity curve.46 percent of manufacturing organizations are currently using compensation software and 10 percent will be pur

43、chasing it for the first time in 2023.Compensation planning Pay-increase budgeting According to our survey,41 percent of manufacturing organizations expected their 2023 salary-increase budget to be higher than originally planned.Increased competition for labor or a labor supply shortage was the top

44、reason(74 percent)cited for the increased budget.Meanwhile,49 percent expected their salary-increase budget to be the same as initially planned.The majority of manufacturing organizations(85 percent)plan to give base-pay increases in 2023,compared to 80 percent overall.It appears they are also givin

45、g larger pay increases in 2023:62 percent of manufacturing organizations say they expect average pay increases to be above 3 percent,compared to 56 percent of organizations overall who say the same.Of those manufacturing increases,42 percent are expected to be above 4 percent.Data represents manufac

46、turing organizations.What do you expect will be the average pay increase given to employees in 2023?Less than1.00%26%ManufacturingOverall1.00-1.49%1.50-1.99%2.00-2.49%2.50-2.99%3.00%3.01-3.49%3.50-3.99%4.00-5.0%More than5%2%0%2%3%5%4%10%6%6%4%19%20%8%9%12%11%26%30%11%12%102023 CBPR:Manufacturing Edi

47、tion| 112023 CBPR:Manufacturing Edition| Factors that contribute to pay increases Many factors are used to determine base-pay increases,and that had never been truer than in 2022 when inflation was through the roof,pay compression seemed to be impacting nearly every employee,and pay transparency leg

48、islation was demanding greater commitment to pay equity.Many of these challenges will continue into 2023,but some will decrease in importance compared to last year.Frequency of pay increases Often,organizations discover that annual pay increases are too infrequent to retain talent,especially if they

49、 underestimate what employees expect around performance reviews or if the market moves faster than employers expect.Our survey found that 79 percent of manufacturing organizations give pay increases annually,while 12 percent are either giving them twice annually,quarterly,or on a rolling cycle which

50、 can be a competitive advantage if economic conditions turn out differently from current expectations.Factors in base-pay increases Which of the following will be factored into base-pay increases in 2023?Data represents manufacturing organizations.PerformanceMarket adjustment/talent competition Infl

51、ation/cost-of-livingInternal pay equityHot skillsMinimum-wage increasesTenurePreparations for pay transparencyChange in locationMerger or acquisitionOther 83%75%61%46%29%17%18%17%5%5%1%122023 CBPR:Manufacturing Edition| 2023 CBPR:Manufacturing Edition| 12Inflation Employees know that rising inflatio

52、n erodes the value of their wages,which results in demands for wage increases.According to our survey,23 percent of manufacturing organizations are addressing the impact of inflation by increasing base pay for lower-wage workers only.Another 40 percent said they are addressing the impact by increasi

53、ng base pay for all workers.Impact of inflation on wages Are you addressing the impact of inflation on wages by increasing base pay to retain workers?Data represents manufacturing organizations.Yes,for all workers Yes,for lower-wage workers only No,we are not adjusting base pay Undecided or unsure 2

54、3%40%20%17%Pro TipPayscale compensation software provides easy-to-use tools for compensation planning around base-pay increases and analysis of the effect on budgets and pay equity.Learn more 132023 CBPR:Manufacturing Edition| OverallFree or open online data 57%Salary survey data from traditional pu

55、blishers44%HR-reported aggregate market data in compensation software40%Salary data from competitor job postings 33%Historical salary data from employee records 27%Government data26%Closed-network HR-reported salary data 25%Trade/industry association surveys19%Paid employee-reported salary data17%Co

56、mpensation consultants12%Personalised competitor intelligence,including talking to candidates or recruiters11%Other4%Unsure3%We dont compare our jobs to market0%Salary dataand market pricing The backbone of compensation management is salary data.Most organizations rely on multiple data sources when

57、it comes to market pricing a job,and its common for them to participate in salary surveys to get this information.However,there are also newer types of salary data sources to consider now,from online salary surveys taken by employees and job seekers to aggregated employer-reported data like Payscale

58、s Peer,in which data is derived directly via seamless integration with the HRIS systems of more than 2,000 employers.Compensation data sources We asked if organizations made significant changes to their data strategies in 2022 and 41 percent of manufacturing organizations said yes,while 7 percent we

59、re unsure.As for adjustments to market data,64 percent of manufacturing organizations said they needed to adjust their sources to account for rapid changes in the market.The most popular types of data sources for manufacturing organizations are free or open online data(57 percent),salary survey data

60、 from traditional publishers(44 percent),and HR-reported aggregate market data in compensation software(40 percent).Data represents manufacturing organizations.Market data sources used Which sources do you use to obtain market data?142023 CBPR:Manufacturing Edition| However,when it comes to the most

61、 trusted data sources for manufacturing organizations,traditional surveys and HR-reported aggregate market data stay at the top while free salary data falls to the bottom of the list.First tier (most trusted)Salary survey data from traditional publishers 18%HR-reported aggregate market data in compe

62、nsation software 15%Closed-network HR-reported salary data 9%Government data 9%Historical salary data from employee records9%Paid employee-reported salary data 8%Trade/industry association surveys 8%Compensation consultants8%Salary data from competitor job postings 6%Free or open online data 5%Data

63、represents manufacturing organizations.Most trusted salary data sources Rank sources by how much you trust and rely on them for accuracy in market pricing.152023 CBPR:Manufacturing Edition| One trusteddata platformPayscale offers validated,continually refreshed salary data directly from employers,em

64、ployees,and trusted survey publishers,allowing organizations to leverage data to drive confident decisions.Furthermore,Payscales compensation management platform empowers HR leaders and compensation professionals to combine and analyze multiple streams of data in one trusted place.Find out more abou

65、t data from PayscaleLearn moreCompensation data available from Payscale include:Survey data from publishersTraditional survey data submitted by HR professionals that you purchase and upload into Payscales compensation management software or purchase more conveniently through our partnerships HR-repo

66、rted aggregate market dataAn analysis of aggregated salary survey data that comprises market ranges for thousands of benchmarked jobs to fill data gaps.Payscale HR Market Analysis would fall into this category.Closed-network HR-reported salary dataOption to join a peer-based data network and drill d

67、own into timely and continuously updated data from select leading companies or direct competitors for talent in your industry or location.This data is submitted by HR professionals and is incredibly customizable.Payscale Peer leads this category.Employee-reported dataValidated compensation market da

68、ta collected through salary profiles submitted by more than 100 million employees on granular skills and geo-data thats refreshed continuously so you can keep a finger on the pulse of the market.Payscale Employee-Reported data leads this category.Free or open online dataThis type of data is availabl

69、e for the public online and is often used by consumers and companies.Salary data available on the Payscale website is representative of our mission to democratize data for the benefit of employees as well as employers.Any data Payscale provides to employers is meticulously validated through a variet

70、y of statistical 15 162023 CBPR:Manufacturing Edition| Data represents manufacturing organizations.Data represents manufacturing organizations.Use a higher target percentileApply a premium to base paySlot into a higher gradeGive a one-time bonus at hiringor upon skills attainmentGive an annual or pe

71、riodic bonusas long as the skill is hotUnsureWe dont award pay premiums for skillsOther 50%0%41%37%31%22%15%5%4%1%Compensating for competitive skills How do you compensate for critical,hard-to-find skills?Skills-based workforce Changing technologies and new ways of working are disrupting jobs and th

72、e skills employees need to do them.Employees with hot skills are in high demand as organizations plan for current and future skills gaps.Based on survey responses,39 percent of manufacturing organizations have an approach to classifying skills;another 9 percent are gathering skills information,but n

73、ot in a structured manner.When compensating for critical,hard-to-find skills,41 percent are doing so by using a higher target percentile,37 percent apply a premium to base pay,and 31 percent slot into a higher grade.Yes|we have classified skills and use a skills taxonomy across the whole organizatio

74、nYes|we have classified skills and use a skills taxonomy for segments of the organizationYes|we classify skills as part of our job/role definition processYes|we gather skills information but not in a structured mannerNo|but we are working on itNoUnsure21%19%18%12%10%10%9%Approach to classifying skil

75、ls Does your organization have an approach to classifying skills?172023 CBPR:Manufacturing Edition| Hybrid Split byjob typeRemote-firstOtherFully remoteTraditional43%34%22%1%1%1%Which of the following best describes your organizations workforce?2%Trending topics and top priorities Employee bargainin

76、g power has increased.Workers are demanding more humane treatment,more autonomy to choose where and how they work,and fair pay.The COVID-19 layoffs and the challenging times that followed motivated employees to reprioritize their values and their well-being.As HR and compensation professionals consi

77、der top priorities for 2023,the challenge centers around how to create better work experiences.Remote work and geographic pay When faced with the COVID-19 pandemic,organizations had to adopt remote-work and work-from-home(WFH)policies.Now that vaccines are available and the threat of the pandemic is

78、 winding down,organizations with traditional or hybrid workspaces are trying to figure out how to get employees back in offices.In our survey,we asked organizations to describe their current workforce.65 percent of manufacturing organizations stated that they have a traditional or hybrid office,whil

79、e 34 percent say expectations for commuting into an office are split by job type.Data represents manufacturing organizations.182023 CBPR:Manufacturing Edition| Do you have a pay strategy that encompasses a remote or distributed workforce?Have you experienced resistance or unwillingness from employee

80、s to return to either traditional or hybrid offices?Yes|but it hasnt made enough of an impact to cause us to review our policyYes|and the impact(on turnover,engagement,morale)has made us reconsider our policiesNo|we have not experienced notable resistance orunwillingness from employees to return to

81、an office environmentOtherNo|in fact,a hybrid office has slowed attrition or improved engagement0%40%37%32%17%6%8%14%14%3%3%12%14%3%4%11%10%18%22%39%34%ManufacturingOverallYes|we apply geographic differentials(+/-a percentage)to a benchmark for each employees locationYes|we group similar markets int

82、o pay zones and use either market pricing or geo-differentials to set pay for each pay zoneNo|we pay everyone the same accordingto one location(e.g.,headquarters)Yes|we approximate using data we can find or by calculating cost-of-living differencesYes|we set pay based on market pricing for each empl

83、oyees locationWe have a mixed strategy that varies by occupation or job familyOtherReturn to offices and WFH preferencesGiven the controversy suggested by news coverage of remote work and mandates on employees to return to traditional or hybrid offices,we asked whether organizations have experienced

84、 resistance or unwillingness from employees to return to in-person work environments.Nearly half(49 percent)of manufacturing organizations said that they are experiencing resistance,but only 17 percent feel that the impact is great enough to consider a policy change.Remote work pay strategy Most com

85、pensation structures are based on market data;however,“remote”is not a location.All employees work from somewhere.Therefore,an organizations remote work pay strategy is really about how pay is determined for employees who work in different locations.Fewer manufacturing organizations say they pay eve

86、ryone according to one location(34 percent)compared to the overall CBPR data(39 percent).Data represents manufacturing organizations.Data represents manufacturing organizations.192023 CBPR:Manufacturing Edition| 2023 CBPR:Manufacturing Edition| 19Are you interested in using geographic differentials

87、as part of your future pay strategy?YesYesNoNoUndecidedUndecided48%46%31%33%20%21%OverallManufacturingForty-six percent of manufacturing organizations are interested in using this approach compared to 48 percent of organizations overall in the full CBPR.Pay zones and geographic differentials To mana

88、ge pay for distributed workforces using modern methods,many organizations use geographic differentials.With this methodology,organizations dont have to market price all their jobs for every location where they have workers.Instead,they can use salary data in compensation management software to calcu

89、late the percent increase or decrease from a benchmarked location to another location.202023 CBPR:Manufacturing Edition| How do you adjust pay for employees who move to another location or pay zone?We do not adjust pay when employees move to another locationWe have a mixed approach to pay adjustment

90、s when employees move depending on their occupation,where they are moving,and their reason for movingWe increase pay when employees move to a more expensive area or pay zone but ONLY if part of a relocation package demanded by the businessWe increase pay when employees elect to move to align to the

91、more expensive area or pay zoneWe lower pay when employees elect to move to align to the new area or pay zoneWe have an inconsistent approach to pay adjustments when employees move that is not centered on an established policy12%28%7%4%4%29%Unsure or undecided17%Adjusting pay for employees who move

92、What about when employees move to another location?Whether remote or not,organizations need strategies that maintain fair and equitable pay for employees who move.According to our survey,most manufacturing employers either dont adjust pay when employees move(29 percent),or they have a mixed approach

93、(28 percent)depending on specific factors.Data represents manufacturing organizations.212023 CBPR:Manufacturing Edition| Pay equity Pay equity is fast becoming an indispensable pillar of compensation management.Since pay equity is an essential step toward adopting pay transparency,we are likely to s

94、ee more emphasis on it in the future.When it comes to pay equity analysis,its a planned initiative for 63 percent of manufacturing organizations,which is the same as for organizations overall.Pay equity used to be driven by fear of legal reprisal,but it has become increasingly tied more to company v

95、alues and talent strategy.Currently,being central to company values(31 percent)and legislative compliance(29 percent)are the top reasons manufacturing organizations cite for the initiative.Over time,we expect to see commitment to ESG(environmental,social,and corporate governance)gain traction.For ma

96、nufacturing organizations not interested in taking action,we asked why.The most common reasons cited were unpreparedness,such as a lack of pay structures(26 percent),and the organization being too small for pay equity analysis to be statistically meaningful(22 percent).More concerning are organizati

97、ons that believe they dont have a problem despite not measuring pay equity(19 percent)and those that say decision makers in their organization believe that pay gaps are nonsense(5 percent).Is pay equity analysis a planned or current initiative at your organization?YesYesNoNoUnsureUnsure63%63%23%27%1

98、4%10%OverallManufacturingFirst(most important)SecondThirdLegislative compliance 29%10%18%Central to company values31%28%14%Part of ESG strategy (environmental,social,and governance)8%18%21%Part of proactive talent strategy 22%32%24%Response to employee feedback10%12%23%Why is pay equity a planned or

99、 current initiative?Data represents manufacturing organizations.222023 CBPR:Manufacturing Edition| Pay transparency 2022 was an important year for pay transparency,as many states and metro areas either passed legislation or proposed bills to require organizations to publish pay ranges in job ads.Alt

100、hough the nuances of these laws vary by area,any organization looking to advertise jobs that can potentially be done in any of these locations needs to take the requirements seriously.The trend towards transparency also looks to expand in 2023.This is a big deal for most organizations,so we asked ab

101、out their reactions to recent pay transparency legislation requiring pay ranges in job postings for certain areas.Although 17 percent of manufacturing organizations say they already include pay ranges in all their job postings and 16 percent say they have the confidence to add them,22 percent say th

102、ey are doing so without confidence in how it will be received by current employees.What has been your reaction to recent pay transparency legislation requiring pay ranges in job postings for certain areas?OverallManufacturingWe havent heard about this and may not be in compliance 10%12%We are choosi

103、ng not to post or advertise jobs in these locations right now 15%12%We are posting pay ranges for jobs in these locations without confidence in how it will be received by current employees19%22%We have refrained from posting jobs in these locations while we work on our pay structures and pay transpa

104、rency internally 11%12%We already have confidence in our pay so it is easy to add pay ranges to these posts17%16%We already included pay ranges in all or most of our job postings17%17%We now adopt this as best practice across all locations,irrespective of legal requirements8%6%This is not applicable

105、 to our country or region2%2%Data represents manufacturing organizations.232023 CBPR:Manufacturing Edition| Adopting pay transparency is a best practice,regardless of the law especially as remote work becomes more common and published pay ranges become increasingly expected by job seekers.Only 36 pe

106、rcent of manufacturing organizations say their current position on the pay transparency spectrum is a level three,four,or five,which are characterized by sharing pay ranges with employees at least one on one.However,when it comes to 2023 targets,58 percent want to reach level three,four,or five.Your

107、 organization tells employees when and what to expect on their paycheck.Your organization shares some market data with employees.1.What2.HowYour organization has a comp plan and shares pay ranges with individual employees.3.WhereYour organizations comp plan reflects org culture and isexplained by ma

108、nagers to EEs.4.WhyRanges and employee pay information are available to all employees.5.WhoaCurrentposition2023target45%20%24%8%4%21%21%31%19%8%Spectrum of pay transparency Describe your organizations current position and 2023 target on the pay transparency spectrum.Data represents manufacturing org

109、anizations.242023 CBPR:Manufacturing Edition| What is preventing your organization from reaching at least level 3 on the pay transparency spectrum?We dont have organizedpay structures(e.g.,grade-based ranges)Leadership is unconvinced of the merits of pay transparencyNothing;we dont want to be transp

110、arent about pay We are not confident in our pay strategy or structures We lack confidence in the accuracy of our salary dataWe are concerned that we have pay inequity issues Other11%33%28%21%18%15%12%Data represents manufacturing organizations.Obstructions to pay transparency communicationsThe reaso

111、ns that organizations fail to become more transparent vary.When we asked,the most common response from manufacturing organizations was not having organized pay structures(33 percent).Another 28 percent said leadership is unconvinced of the merits of pay transparency,and 21 percent simply dont want t

112、o be transparent about pay.252023 CBPR:Manufacturing Edition| Organization sizeWe separated out six organizational sizes for comparison.MethodologyThe 2023 Compensation Best Practices(overall)survey gathered 4,933 responses between October 2022 and December 2022.The overall completion rate(55 percen

113、t)was the highest of any CBPR in recent history and contains more international responses,enterprise responses,and responses from executives than previous years.This 2023 CBPR:Manufacturing Edition shares insights and data based on 351 survey responses from manufacturing organizations.Overall United

114、 States 71%Canada 8%Germany 5%United Kingdom4%France 3%Japan2%India 1%Other 4%1-499 employees500-1,199 employees1,200-4,999 employees5,000-9,999 employees10,0000-99,999 employees100,000 or more52%13%13%11%1%9%Location headquartersManufacturing respondents spanned the globe,including 71 percent headq

115、uartered in the United States,8 percent in Canada,5 percent in Germany,and 4 percent in the U.K.Forty-one percent of manufacturing organizations are concentrated primarily in one location(state,province,or country).More than a third(37 percent)are concentrated in multiple states/provinces or a few c

116、ountries or time zones.Twenty-two percent have a global workforce with employees distributed throughout the world.Data represents manufacturing organizations.*“Other”includes respondents from countries we didnt include as an option in the survey,as well as countries with 1%or fewer responses(i.e.,In

117、dia,Australia,Netherlands,and Japan).*Totals are not exactly 100%due to roundingHow many full-time employees are in your organization?Where is your organization headquartered?Data represents manufacturing organizations.262023 CBPR:Manufacturing Edition| About PayscaleAs the industry leader in compen

118、sation management,Payscale is on a mission to help job seekers,employees,and businesses get pay right and to make sustainable fair pay a reality.Empowering more than 50%of the Fortune 500 in 198 countries,Payscale provides a combination of diverse and dynamic data sources,experienced compensation services,and scalable software to enable organizations such as Angel City Football Club,Target,Gainsight,and eBay to make fair and appropriate pay decisions.To learn more,visit .Pay is powerfulPay is powerful