Transforming compensation into a lever for engagement and retention
Discover how rising expectations, new regulations, and lack of transparency are forcing organisations to rethink how they approach pay.
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What's inside
Explore how compensation can become a strategic lever for engagement and retention, moving beyond traditional pay models. Learn how to better align rewards with employee expectations, strengthen motivation, and support long-term commitment within your organisation.
“Sharing the salary grid early — starting at the job offer stage — creates clarity for candidates and reduces friction when offers are made.”
Thibault Vilon
CPTO at Assessio Group
“Sharing the salary grid early — starting at the job offer stage — creates clarity for candidates and reduces friction when offers are made.”
Thibault Vilon
CPTO at Assessio Group
Key insights
Compensation is no longer just about pay — it’s a key driver of engagement and retention. Here are the insights every HR leader needs to rethink their strategy.
61% of employees consider compensation the key factor in their job
But pay alone is no longer enough. Employees now expect fairness, transparency, and purpose behind compensation.
78% of employees say variable compensation is a key motivation driver
When linked to clear performance criteria, variable compensation helps reinforce motivation, recognition, and alignment with business objectives.
60% expect more transparency on career progression
Employees expect greater visibility on how they can grow — including clear criteria for progression, pay evolution, and career development.
5% pay gap threshold now requires action under EU regulation
Unjustified pay gaps above this level must be reviewed and corrected, pushing companies toward more transparent and data-driven compensation.
For HR leaders ready to rethink compensation
For HR leaders ready to rethink compensation Move beyond traditional pay models and discover how to turn compensation into a driver of engagement and retention.
Download the full report
Related resources
Is your pay structure ready for the EU Pay Transparency Directive?
The June 2026 deadline is here. This webinar explains what HR teams need to do right now.
Register now
Pay Transparency Directive country tracker: where each EU member state stands (June 2026)
Read our country tracker on how EU member states are implementing the Pay Transparency Directive (June 2026).
Pay transparency compliance checklist: 12 steps every HR team must take in 2026
Read what your HR team must do to meet pay transparency requirements in 2026, in 12 steps.
Frequently asked questions
What is a compensation strategy?
A compensation strategy defines how an organization structures salaries, bonuses, and benefits to attract, motivate, and retain employees while aligning with business goals.
Why is compensation important for employee retention?
Compensation directly impacts engagement and retention. Fair and transparent pay helps employees feel valued, reducing turnover and increasing long-term commitment.
What is pay transparency and why does it matter?
Pay transparency means openly communicating how salaries are determined. It builds trust, reduces bias, and is becoming a legal requirement across Europe.
What is a salary grid?
A salary grid is a structured framework that defines pay ranges for roles based on factors like seniority, skills, and responsibilities, ensuring fairness and consistency.
What is the EU Pay Transparency Directive?
It’s a regulation requiring companies to disclose salary information, address pay gaps, and ensure equal pay for equal work across the EU.
How should performance be linked to compensation?
Compensation should reflect measurable performance, skills, and impact to ensure fairness, motivation, and alignment with business goals.