Mandatum Plc, Press Release, 28 May 2026 at 8:30 a.m. EEST
Finnish compensation practices are at a turning point. Mandatum’s Reward and Compensation Survey 2026 shows that employees are seeking more transparency, security and opportunities to influence their earnings than before – and are also willing to take on more risk. Nearly half of all employees would be willing to accept a lower base salary if it meant the possibility of higher performance-based bonuses.
In brief:
- Nearly 60% of employees intend to ask for information about the salaries of peers in similar roles once the Pay Transparency Directive takes effect.
- 47% of employees feel that their employer’s compensation system works well, while 71% of employers rate their compensation practices as at least good, reflecting a significant gap between these perceptions.
- Appreciation for various compensation tools has increased sharply since the previous survey.
- Willingness to take risks is strongly on the rise: one in two employees (48%) would be willing to accept a lower base salary in exchange for the opportunity to earn higher performance bonuses and total compensation.
Pay transparency is expected to increase discussions about pay in the workplace
The Pay Transparency Directive is expected to have a wide-ranging impact: 66 per cent of companies anticipate that it will affect their pay policies, particularly by clarifying how pay is determined and reducing pay disparities or individual pay raises. At the same time, 57 per cent of employees intend to exercise their right to obtain information about the salaries of peers performing similar work. Young people and supervisors are the most active in this regard.
According to the compensation survey, one in two employees believes they know their colleagues’ salaries, and 45 per cent discuss salaries with their colleagues.
“Transparent and fair compensation benefits both employers and employees, and the Pay Transparency Directive supports this by increasing clarity while still allowing for justified differences in pay. The risk, however, is that employers may become reluctant to differentiate compensation even when it is warranted. That would be counterproductive. Outstanding performance should be recognised and rewarded, and performance-based compensation is an effective way to achieve this,” says Tarja Tyni, Mandatum’s EVP, Corporate Clients.
According to the survey, there is a gap between employee and employer experiences: 47 per cent of employees feel that the compensation system works well, while 71 per cent of employers rate their compensation practices as at least good. This challenges organisations to examine not only their level of compensation but also the related communication, transparency and perceived fairness.
Demand for variable compensation is growing strongly
The results point to increased interest in variable compensation. As many as one in two employees (48%) would be willing to accept a lower base salary if it meant the opportunity for higher performance-based bonuses (2024: 38%). While this willingness is particularly evident among young people, men and higher-income earners, a marked increase was also seen among female respondents compared to the previous survey results. At the same time, employers view variable compensation as an important component of an ideal compensation scheme that helps achieve the company’s goals.
“The formula for compensation is changing. The results show a clear shift towards more performance- and results-driven compensation, which is welcomed by both management and staff. Now is the time to ambitiously adopt performance-based compensation tools even more broadly,” says Kiisa Hulkko-Nyman, Business Director, Mandatum Incentives.
Employees’ appreciation for personnel funds, supplementary pension and insurance benefits has increased since the previous survey in 2024. These compensation tools are becoming increasingly valued components of overall compensation: 65 per cent consider supplementary pensions important (2024: 50%), 57 per cent of employees consider personnel funds important (46%), and 53 per cent consider insurance benefits important (49%).
“Expectations of concrete actions by employers have grown, and women in particular consider supplementary pension and insurance benefits very important. Cuts to pensions and social security are putting pressure on employers to find effective and workable solutions,” says Hulkko-Nyman.
According to the survey, the vast majority of employees do not believe that their statutory pension will be sufficient to maintain their standard of living, but only around half have taken steps to save on their own. More than 60 per cent of employees believe that employers should bear more responsibility than they currently do for retirement income, disability coverage and financial security for families in the event of death.
Seeking growth – AI is starting to make its mark on compensation
The compensation survey also examined companies’ growth expectations and the impact of artificial intelligence. The growth outlook for companies was positive: as many as 60 per cent of companies believe their business will grow over the next two years. Companies expecting growth were more likely than others to use not only short-term performance bonuses but also long-term incentives and supplementary pension schemes.
According to the survey, AI’s impact on compensation and working life is still in the early stages. Roughly one in ten companies feels that AI has had a significant impact on their business or operating practices, and 8 per cent have incorporated AI into their compensation schemes. As many as 30 per cent of employees see AI as an opportunity to increase their earnings, while only a small proportion (20%) view it as a threat to their earning potential.
The research findings are based on Mandatum’s fourth compensation survey. The aim of the survey was to examine the compensation models used by Finnish companies, as well as the views of employees and management on the motivational impact and effectiveness of compensation.
The compensation survey was conducted by Bondata on behalf of Mandatum. The survey, conducted in March–April 2026, received responses from 101 employer representatives and 1,003 employees in the private sector. The survey was conducted through telephone interviews with employers and panel data collected from employees in March–April 2026.
Download a summary of the survey from Mandatum’s website (in Finnish).
Additional information:
Kiisa Hulkko-Nyman
Business Director, Mandatum Incentives
Tel. +358 50 337 5482
kiisa.hulkko-nyman[a]mandatum.fi
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela[a]mandatum.fi
Mandatum in brief
Mandatum is a major financial services provider, combining expertise in asset and wealth management and life insurance. Clients include institutional investors, companies and private individuals. Mandatum offers a broad range of services encompassing asset and wealth management, compensation and rewards, supplementary pensions and personal risk insurance. Skilled personnel, strong brand and proven investment track record are at the centre of Mandatum’s success. The company has been listed on Nasdaq Helsinki since 2023.
mandatum.fi/en/group
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