Looking to Employers for Pay-Gap Solutions

Plenty has been written about the pay gap between men and women in recent months.

188094090Indeed, as most of our readers know, the issue recently made news again when President Obama directed the Department of Labor to issue new rules requiring federal contractors to provide compensation data that includes a breakdown by race and gender.

In light of its ability to get much of anything through Congress these days, the Obama administration has lately been doing whatever it can through executive orders. But as a study released by Glassdoor earlier today suggests, it’s hardly the only interested party with a role to play.

Indeed, when Glassdoor recently surveyed 1,000 employees and job seekers, it found nearly six out of every 10 employees (57 percent) believe employers are in the best position to address pay gaps. This was followed by Congress (30 percent) and President Obama (14 percent).

Asked to specify how employers could make a difference, the respondents said:

  • New company policies around pay and comp (52 percent)
  • Clearer communication from senior leaders/HR about how raises are determined (45 percent)
  • Greater pay transparency (38 percent)
  • Government legislation (21 percent)
  • Employees threatening to leave and/or protests (17 percent)
  • New senior leaders (16 percent)

In many cases, the employees and job seekers indicated they’re looking to HR for clarification, with a fairly healthy portion of the respondents (43 percent) saying they believe the function is responsible for helping them understand how pay raises or cost-of-living increases are determined at their current employer.

Glassdoor’s career and workplace expert, Rusty Rueff, sees the findings as a wake-up call for employers …

Now is the time employers need to take a close look at their salary structure[s] and determine where pay gaps exist, then fix [them] so employees know exactly where they stand in terms of compensation within their organization.  When employees have a clearer understanding of how they’re being compensated without secrecy around salaries, not only can they feel empowered in their current jobs, they’re also often motivated to work toward the next level, which can improve productivity.”

Tied to that notion is the additional stat that more than one in three (36 percent) of the respondents do not believe they understand the process their employer uses to determine pay raises or cost-of-living increases.

As for how men versus women view their pay, more than 42 percent of women do not believe they received fair pay in their current jobs, compared to 34 percent of men. These numbers seem fairly consistent with other studies that have come before.

Glassdoor also asked respondents to check off workplace perks that would keep them satisfied, in those instances when employers might not be in a position to provide pay raises or cost-of-living increases. Here’s what it found they wanted:

  • 61 percent – more paid vacation days
  • 52 percent – more career opportunities
  • 50 percent – flexible work hours
  • 46 percent – option to work from home/remotely
  • 44 percent – company stock/shares
  • 34 percent – healthcare subsidy
  • 23 percent – gym membership
  • 21 percent – opportunities to work on new projects

I’m sure many of you won’t be too surprised to see what some of the top choices were.  I would imagine there are some similarities to what you’re seeing and hearing on your engagement and satisfaction surveys, assuming you’re regularly doing them. But that said, I figure it never hurts to see what the broader universe of employees and job seekers are saying matter most to them these days.