FEMALE employees are less likely than their male counterparts to discuss their pay with senior managers, a new study shows.
The survey of 1,011 HR and business leaders and employees across the US and UK, by XpertHR and Expert Networks found that, in comparison, only 16 per cent of male workers reported the same total lack of conversation around salary.
Also compared to 16 per cent of males, 25 per cent of female survey respondents stated they had not discussed their salary with their management.
Only 61 per cent of female employees said that they had a solid grasp of how salary is set at their businesses, compared to more than 75 per cent of male employees.
In an effort to combat wage inequity, the government started a trial programme last year that encouraged firms to reveal salaries on advertisements. However, this programme has since been discontinued.
The gender pay gap, according to researchers, may be reduced by increasing pay transparency, which includes disclosing salary ranges or informing current employees how their salary is determined.
Zara Nanu, CEO of Gapsquare, part of XpertHR, said: “When organisations look inwards, empowering managers with the right data insights enables them to host pay discussions with confidence.
“The right data insights also enable organisations to create a culture that moves pay discussions away from a solely HR issue into one that engages the entire workforce in a comfortable and open discussion.”
Jeanne Meister, EVP, Executive Networks added: “There is no doubt that pay transparency is a top priority for top-performing organisations. Ensuring your organisation has the necessary understanding of how to tackle fair pay practices is not competitive action – it is a business imperative.
“Without effectively and transparently communicating pay determinants and salary ranges, employees are left in the dark on pay structures, compounding the gender pay gap further.
“Looking ahead, leaders must narrow the divide between how transparency measures are perceived amongst employees and managers and create a framework that aligns the entire workforce.”
According to XpertHR’s poll, half of managers believed that explaining to workers the elements that affect wages was the greatest barrier to addressing pay transparency.
However, it was shown that 63 per cent of firms have already given managers training on how to hold pay transparency dialogues. One-third didn’t.
*XpertHR is an online HR resource company that provides employment law advice.
**Expert Networks solves the talent challenges facing organisations and modern business leaders.
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