- 68% of employees believe they’re underpaid, even when their compensation is at or above market rates
- Employees who believe they’re paid unfairly are 45% more likely to look for a new role, regardless of their actual compensation
- Employees who work for organizations with high levels of pay transparency are 59% less likely to leave
BOSTON, June 17, 2025 (GLOBE NEWSWIRE) — Payscale Inc., the leading provider of compensation intelligence solutions, today released its 2025 Fair Pay Impact Report, highlighting a growing gap between employee perceptions of fair pay and reality. More than two thirds (68%) of employees report being underpaid, even when earning at or above market rates. As a result, many employers are exposing themselves to an increased risk of losing top talent. Payscale’s analysis shows that employees who think they’re paid unfairly are 45% more likely to look for a new job, regardless of their actual compensation.
The gap between perceptions of fair pay and reality has grown significantly since 2021, when just half (51%) of employees earning at or above market felt underpaid. Despite rising salaries and improved pay transparency, employee misperceptions of unfair pay have surged. This suggests that employers’ current communication strategies around compensation are falling short.
Pay transparency is an important factor in combatting pay misperceptions and boosting employee retention. Employees who work for organizations with high levels of pay transparency are 59% less likely to leave relative to non-transparent organizations. Amid a growing wave of pay transparency legislation in states and cities …