Download our new eGuide: Troubleshooting Transparency: Avoid legal risks and HR challenges.

All Articles
Human Resources2 min readSeptember 22, 2021

Bias in Compensation Attributed to Managers’ Feelings

Written by Jeff YoderReviewed by Tanya Jansen
Employees at their workstations

Learn more about the following beqom products

More than one third (34%) of workers believe their pay is determined by what their manager feels they deserve to make and not based on their performance, skill set, and experience, according to a beqom survey of 1,200 actively employed adults in the United States.

Compensation bias can be hard to detect

At a time where organizations are asking how they can make sure they’re effectively dealing with gender pay gap, racial equality, or ageism in the workforce, compensation bias is in real danger of stalling HR progression. Our survey showed that women (35%) are slightly more likely than men (33%) to believe their pay is based on their managers’ personal feelings and biases.

To counteract this perception, employers must first determine if the belief is true, which may be no easy task. When raises are granted in spreadsheets that lack checks and balances or salary pools are distributed solely at a manager’s discretion, it can be nearly impossible to determine if manager bias exists in compensation.

Pay equity analysis requires the right technology

It takes implementing true total rewards-focused technology—software powered by AI and predictive analytics and designed specifically for managing and analyzing all aspects of total comp—to support pay fairness. This technology is necessary to give HR and management insight into how pay is distributed throughout the company and how it correlates to gender, race, and other factors. In addition, total rewards management technology can allow HR leaders and managers to further uncover gaps by comparing internal pay data to external benchmarks.

Likewise, it is important for employees to know and believe that they are being paid fairly, which requires that they have visibility into how their pay was calculated. For companies that want to commit to more transparent practices around pay, investing in digital tools can help show employees how their performance contributes to their pay and what their financial growth trajectory looks like long term. By connecting the dots between pay and performance, employees can be incentivized to work harder to meet required benchmarks and earn the next boost in pay.

Fair pay can reduce costly employee turnover

Additionally, implementing AI-driven compensation technology can mitigate the risk of employee turnover, which costs businesses as much as one-third of each former worker’s annual salary to rehire. When the decisions you make are fair, market-based, and transparent, the natural result is loyalty and motivation, leading to an increase in retention of top talent.

For a playbook on achieving pay equity in your organization, download The Pay Equity Playbook: Pay Equity Actions That Matter Most to Your Workforce and show your employees you are committed to taking action to pay your workforce fairly and transparently.

Download the Pay Equity Playbook eguide

Editor's note: This "greatest hits" article was originally published in April 2019.

More insights from the beqom blog

Explore other recent blog posts to stay updated on key trends and strategies in HR. Our blog provides expert insights to help you drive success in your organization.

Man holding a tablet

From Data to Insights: 5 Steps to Pay Equity and Transparency Success

4 min read

Compliance starts with data. Prepare your employee IDs, groupings, and pay metrics now to lay a solid foundation for your pay equity and transparency analysis.


Read more
Three people in a conference room talking.

4 Ways for Hybrid, Remote, and International Companies to Master Pay Transparency

4 min read

Navigating global pay transparency laws is complex, but it's a strategic opportunity. Learn how to overcome the four key challenges—from legal complexities to cultural nuances.


Read more
A man and a woman in an office setting having a conversation holding coffee cups.

Humanizing Compensation: Why Pay Is More Than Just a Paycheck

2 min read

Compensation is about more than just a paycheck. Discover why it's essential to humanize compensation to build trust and create a more engaged workforce.


Read more
Hand drawn Tin can telephone.

Our newsletter

Sign up for the beqom newsletter to access exclusive resources on topics like Pay Equity, Compensation Management and Sales and Employee Performance. Our regular updates ensure you’re always informed on the latest trends in HR and compensation.

Some of our latest resources

Broaden your understanding with our curated selection of recent articles. Explore best practices, gain insights from industry thought leaders, and stay up-to-date with the latest trends to help drive success in your field.

Image with Dr. Margrét Bjarnadóttir and Dr. David Anderson

On-Demand Webinar | The Ethical Use of AI in Pay Equity & Transparency

Learn how organizations can ensure an ethical use of AI in their pay equity and pay transparency efforts from PayAnalytics co-founders Margret Bjarnadottir and David Anderson.


Read more
Image of the cover of beqom's eGuide "Troubleshooting Transpasrency".

Troubleshooting Transparency: Common Pay Transparency Challenges and How U.S. Companies Are Handling Them

With new pay transparency laws taking effect in 2025, companies face increased HR and compliance complexities. Discover how smart companies are navigating them.


Read more
Image with Aleksandra Popovic and Beth Clutterbuck.

On-Demand Webinar | HR & AI: How to Foster an AI-Augmented Workforce

Unlock the secrets to leading HR in the AI era! Watch our webinar recording with beqom's Head of HR and Relativity's CHRO to gain practical insights on upskilling, job design, and balancing automation with human value.


Read more
A hand drawn graphic showing 2 birds on a line.

Get to know the beqom product line

For over a decade, we’ve partnered with some of the world’s leading organizations to tackle their unique compensation and performance challenges. We understand that every business has distinct needs, not a generic approach.

Connect with a beqom expert to arrange a personalized demo that addresses your goals directly.

Request a demo today