A third of women in Australia report that if presented with a large pay gap, they would look to leave their employer, an EvenBetter.ai Pay Gap Matters pulse check has found.
The market-benchmark and analytics-driven startup, which leverages artificial intelligence to identify the underlying causes of pay disparities and provide corrective suggestions, polled Australian workers to determine the extent to which pay differentials inform career choices.
The research indicated a strong correlation between compensation equity and performance in the workplace, with pay gaps along gender lines resulting in lower motivation, diminished talent pools, and increased turnover.
This is the first Australian survey of its type to investigate the impact of pay equity on day-to-day workforce decisions," commented Co-Founder Sorrel Kesby of EvenBetter.ai. "The findings unequivocally indicate that pay equity is not merely an issue of fairness—it is a business growth driver and needs to be a strategic imperative for leaders.
Major survey findings indicated that 71 percent of women and 29 percent of men would not feel comfortable applying to an employer who has a wide pay gap. Also, 41 percent of women and 20 percent of men stated current pay gaps have a negative effect on their motivation in the workplace.
The statistics arrive in the wake of the Workplace Gender Equality Agency (WGEA) releasing a report that indicated more than 7,800 Australian firms possess a mean gender pay gap of 20 percent. Over 3,000 of those firms have a high or very high gap, affecting 1.6 million workers—750,000 of them women.
These are about business performance, explained Ayal Steiner, Co-Founder of EvenBetter.ai. Leaders who adopt pay equity as a growth driver will realize more employee engagement, acquire best-in-class talent, and minimize turnover.
With the world today of increasing pay transparency, where two-thirds of women screen out businesses prior to interviewing, it has a direct impact on hiring pipelines and overall performance.
The survey also revealed a snowball effect: firms with higher pay differentials attract more male candidates, perpetuating inequality and sabotaging diversity of workforce.
"While women suffer most from the gender pay gap, our research finds it also affects men's job choices. Achieving balance is key to building strong, diverse teams that can deliver sustained success," Sorrel said.
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