It appears that just under half of United States employees believe they are not being paid fairly compared to workers who hold similar jobs, new research shows.

Managing director of talent and rewards at consultancy Willis Towers Watson, Laura Sejen, explains how pay equity is becoming one of the highest priorities for employers.  This comes as no surprise when you consider the fact that base pay continues to be the most cited reason employees choose to join or leave a company.

The firm’s 2016 Global Workforce Study polled over 3,000 employees in the United States earlier this year and found that while a large percentage do not feel appropriately compensated, over half of respondents reported believing they are paid fairly.  Among other things, the survey set out to measure whether employees actually understand how their base pay is calculated.  A whopping 65% of employees said they do understand how their salary is determined.  On the other hand though, only 39% of polled employees understand how their total compensation compares with other “typical” employees within their organization.

A companion study found that employers haven’t really laid much groundwork when it comes to ensuring employees are paid fairly.  In this study, only half of senior executives polled reported having a formal process in place to ensure fairness in pay.  Given the increasing competition in the workplace and the way that millennials function, this will have to be on the radar of any company that wants to attract and retain talent.

Multiple states have adopted pay equity laws which require companies to disclose the ratio of CEO pay to median employee pay.  This kind of transparency will likely fuel already existing concerns over pay equity and employee understanding.