Majority of Workers Believe Their Company Has Unaddressed Pay Gap Issues

More than half of U.S. employees believe their workplace has an issue with gender pay gaps—an increase of 121 percent since 2019.

“In 2023, the ball is clearly in the employer’s court when it comes to taking steps not only to equalize pay, but also to open clear lines of communication about compensation throughout the organization,” according to a report from the compensation management platform beqom.

“Perceptions of pay gaps due to an employee’s gender, age, or racial background are widespread, and workers remain skeptical of the effectiveness of their company’s efforts to narrow those gaps—and of their organization’s overall commitment to doing so.”

A beqom survey of 2,000 working adults in the United States and the United Kingdom found these results:

• More needs to be done.  Although some progress has been made in addressing the gender pay gap, many employees still don’t know the actual size of the discrepancy. However, a new awareness of age- or race-based pay inequity is rising.
• Perception of lip service.  Many employees don’t believe their company is sincere in addressing the gender pay gap and doubt the effectiveness of actions taken.
• Legislation could help.  Although there is a lack of trust in employer action, workers believe there should be pay regulations at the national level.
• Colleagues are talking.  The pandemic and inflation have prompted employees to discuss their compensation with colleagues. However, many remain reluctant to do so with their manager.
• Employees are holding back.  This reluctance was cited as the reason many workers, especially in the UK, didn’t seek a raise in the past year. Concern about a pending recession also made them hesitant to rock the boat.
• The onus is on employers.  The majority of workers are not willing to give up perks such as bonuses to help employers make pay more equitable. They are, however, willing to publicly share their salary figures.
• Millennials are the biggest critics.  In their prime earning years, millennials are not only the most vocal regarding pay gaps at their company, but also the most willing to make concessions.

“To bridge pay gaps in the workplace, employers must proactively build pay equity and increase transparency within their organization,” says Tanya Jansen, co-founder of beqom. “When employers make a conscious effort to boost pay equity and provide more transparency around pay decisions with their staff and candidates, they help to build a level of trust that contributes to a feeling and reality of fair pay. Amid today’s shifting work landscape and volatile job market, this meaningful progress toward remediating pay gaps and bias is critical to maintaining higher employee retention.”

From: BenefitsPRO