New research has revealed that around four in 10 women in the UK believe they are underpaid, and they are also less likely to ask for a pay rise.
The study on the impact of the cost-of-living crisis on UK employees, carried out by HR software provider Ciphr, found that 38% of the female employees surveyed don’t think that their salary adequately reflects the value they bring to their organisation with their skills and experience, compared to 32% of male employees. A similar number of people also disagreed with the statement ‘my salary reflects my role and responsibilities’, (37% of women compared to 32% of men).
In fact, around half (51%) of men feel adequately rewarded for their efforts, with 49% agreeing that their salary reflects their skills and experience, according to the research. Around half (51%) also said that it is reflective of their current role and responsibilities. However, less than half of women (45%), agree with either statement. Additionally, women were less likely than men to have requested a salary increase this year despite being equally affected by rising living costs.
MEN VERSUS WOMEN ON FAIR PAY & PAY RISES
Additionally, M=men are more likely to have requested a raise, according to the study. One in three (36%) male workers, compared to just one in four (26%) female workers, having asked for a pay rise. In fact, men who aren’t happy with their pay are even more likely to push for higher wages. Almost half (48%) of those men who disagree (and strongly disagree) that their salary matches their skills and experience have asked for more money. But just a third (32%) of women who feel the same way have done the same.
Even men who can’t decide if they are being paid fairly or not, are still, statistically, more likely to have asked for a pay rise than women who know that they are unhappy with their wages (38% vs 32% respectively). Generally, men are also more likely to have asked for a cost-of-living bonus (14% versus 7% of women), for a promotion (22% versus 17%), or for more employee benefits to top up their income (16% versus 11%). Worryingly, this notable gender ‘ask gap’ (where women ask for, or expect, lower salaries than comparable men) could be contributing to, and compounding, existing pay gaps at many organisations.
GENDER PAY GAP
As it currently stands, according to the Office for National Statistics, the UK’s median gender pay gap is 14.9% for all employees (and 8.3% for full-time employees), with women’s hourly pay lagging men’s hourly pay in most occupations. Women working in the private sector also have to contend with a bigger pay gap than those in the public sector (19.6% vs 15.9%).
“Much has already been written about how the salary ‘ask gap’ can contribute to pay inequality. It happens when people, usually women, sell themselves short by accepting a lower salary than they are perhaps ‘worth’ because they perceive the salary they are being offered as fair,” said Claire Williams, Chief People Officer at Ciphr. “Or, as highlighted by Ciphr’s latest research, they don’t ask for a pay rise at all – even if they are unhappy with their wages – maybe because they don’t feel confident, or empowered, in asking for a higher salary.
PERPETUATING PAY GAPS
“These employees then potentially end up being paid a lower market rate – sometimes compounded over years – than they should be, compared to others with similar skillsets, qualifications, and experience. This isn’t good for them, or their employer, because people who don’t feel valued are much more likely to be looking elsewhere for a new job. And, until this cycle is stopped, it will keep perpetuating pay gaps.
The onus is on employers now to do more to fix this. “As the ONS earnings figures show, disappointingly, the gender pay gap is still as wide as ever in many industries. Employers must be held accountable for doing what they can to reduce salary discrepancies – where they see them – within their organisations to ensure that all employees are being fairly financially rewarded for their efforts, and the value they bring to the business,” said Williams. “Better representation of women and ethnic minorities at all levels, in all roles, is a vital part of driving this change and achieving pay equality. It’s also the best way of attracting and retaining the best employees long-term.”
Check out the results here.
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