Aussies worried they are being paid less than co-workers in same role

At least half of Australian workers say they’re earning less than colleagues doing the same job. Now, experts reveal the best way to handle the situation.

Naming and shaming companies with gender pay gaps is unlikely to be the quick fix many are hoping for, as new research reveals half of Aussie workers believe they are paid significantly less than colleagues employed in the same role.

Forty-nine per cent of employees, regardless of gender, say there are sizeable differences in their pay compared to that of co-workers who share the same job title, HireVue research shows.

But experts warn many people hoping that the imminent release of gender pay gap data will provide them with a more equitable salary could be left wanting, with some instances of pay disparity able to be justified.

HireVue senior assessments consultant Tariq Shaban says there is ‘no quick fix for workplace equity’.

HireVue senior assessments consultant Tariq Shaban says additional skills, work responsibilities or company tenure can all reasonably explain higher salaries, even for those sharing the same job title as someone paid considerably less.

“There is no quick fix for workplace equity,” Shaban says.

“And there could be misconceptions (among workers) in terms of the reasons there are pay gaps – employees are not fully aware of the skills and capabilities of their colleagues, for example.”

PERCEPTION VS REALITY

The Workplace Gender Equality Agency will start publishing salary discrepancies between male and female employees from February 27 in a bid to close the gender pay gap. This sees women paid about 21.7 per cent, or $26,400, a year less than men.

While evidence of a gender pay gap is irrefutable, Shaban doubts workers across the board experience large differences in pay for performing the same role, saying HireVue’s research is based on employee perceptions, rather than reality.

He says economic conditions that have seen inflation outstrip wage rises, along with assumptions about business performance, are leading many workers to complain their pay is unfair.

“If you see that profits of an organisation are increasing, but that’s not trickling down to employees and inflation is eating away at their buying power or ability to pay the bills or support their family, then people naturally become disgruntled,” Shaban says.

He encourages workers to discuss pay concerns with their employer, who will likely respond in one of two ways.

“HR will either see the strength of your case and address the issue … or they will be able to convey that, in this situation, this particular colleague has these additional skills or additional work (responsibilities) or has been with the organisation longer than you,” he says.

Georgia Tyndale, account executive at brand tracking start-up Tracksuit.

BUILDING TRUST

Georgia Tyndale works as an account executive at brand tracking start-up Tracksuit, which has equal pay for staff who hold the same role, regardless of age, gender or background.

Having previously worked for a company that paid her less than her co-workers – because she was promoted internally compared to others who were externally hired – Tyndale describes her employer’s approach to pay as a “game changer”.

“Like most relationships, employment is based on trust – and pay transparency is one way that Tracksuit has built trust and helped me understand that the contributions I make are valued,” Tyndale says.

“An open dialogue about pay empowers you to know what you can ask for and what is possible. It moves away from rewarding those who may negotiate better than others.

“Tracksuit’s pay transparency is an easy way to show me that there’s no gender bias.”

SPEAK UP

Nirit Peled-Muntz, chief people officer at HR tech company HiBob, welcomes the upcoming release of gender pay gap data. But she says, in many cases, wage discrepancies are not deliberate and companies want to do the right thing.

She agrees higher pay is often awarded to employees who are strong negotiators while those who lack the confidence to ask for more miss out.

For varying reasons, women typically have “less confidence to ask for more”, she says. “If (employers) are not attentive to this they think, ‘she’s happy with (her current salary)’,” Peled-Muntz says.

“But the fact that somebody is (settling) for less (pay) doesn’t mean they deserve less.”

Peled-Muntz hopes publishing gender pay gaps will empower women to know their worth and fight for it.

“Don’t be afraid to negotiate (salary),” she says. “You can ask for more and you can get a `no’ (in reply) – that’s fine but you still ask for it.”

What to do if a colleague in the same role is getting paid more than you:

1. Do your research and find out what the industry average salary is for your role.

2. Review your performance. Look at what you do at work and consider if it matches what others in that role are doing.

3. Schedule a private meeting with your supervisor or HR team to discuss your concerns. Ask why you are paid differently and present a compelling case for a salary adjustment, using evidence of your skills, experience and accomplishments to date.

4. Ask about opportunities for professional development or extra responsibilities that could justify a salary adjustment.

5. Review company policies on pay equity, as well as the Workplace Gender Equality Act, to understand the formal procedures for addressing and resolving pay disparities.

Source: Tariq Shaban and Nirit Peled-Muntz

Originally published as Aussies worried they are being paid less than co-workers in same role