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Gender disparity exists in pay talks, study suggests

by Kavitha Sivasubramaniam
13/07/2023
Gender, disparity, pay discussions, research, XpertHR, Executive Networks, revealed, women, twice, likely, men, lose out, workplace pension, research, TUC, revealed
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A disparity between genders exists in pay discussions, new research has revealed.

The 2023 Pay Equity and Transparency Study by XpertHR and Executive Networks showed that 16% of men reported having no salary conversations with their managers, compared to a quarter (25%) of women.

The survey of 1,000 HR and business leaders and employees in the UK and the US further found that more than three-quarters (76%) of men believe they have a good understanding of how pay is determined at their company, but only around three in five (61%) women said the same.

In terms of pay transparency, more than seven in 10 (71%) senior leaders think their practices are effective, but only 39% of employees agree.

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.”

The research found that half (50%) of managers cited communicating the elements that affect pay to staff as their greatest challenge in this area, but 63% of senior leaders said managers are already being trained in how to have conversation about transparency. Additionally, a third (33%) claimed no training in this area was offered to managers.

Jeanne Meister, EVP, Executive Networks and author, 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 a 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.”

 

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