Thursday, April 18, 2024

Employee pay gaps remain prevalent

Findings from a survey commissioned by the Australian Payroll Association has shown that two in three organisations have large-scale pay rate discrepancies.

A survey of 601 payroll managers has reportedly revealed that 69 per cent of payroll managers see significant differences in pay rates between employees who do the same work or have similar responsibilities.

Fifty-eight per cent of payroll managers reported this discrepancy in small business, with the statistic jumping to 75 per cent in organisations with 500-10,000 employees.

Experience and longevity

Fifty-four per cent of payroll managers reported experience and longevity as the main reason behind pay gaps, with 30 per cent reporting a pay gap between less and more experienced employees (particularly seen in small businesses).

Twenty-four per cent stated disparity between new employees and those who had been in the company for longer (more notable in larger organisations).

Getting ahead

Networking, office politics and the right department are said to be reasons for getting ahead.

One in five payroll managers reportedly see pay gaps between employees who engage in office politics and who are well networked versus those who don’t do either well.

Sixteen per cent of payroll managers reportedly feel that pay discrepancies occur typically between employees who work in departments who bring in, or are responsible for, higher company income (seen particularly in large organisations).

Gender and age 

Only seven per cent of payroll managers who saw variations in pay for the same work claimed this was due to gender, while only two per cent said pay discrepancies occurred due to age.

CEO of the Australian Payroll Association, Tracy Angwin said: “Pay gaps are still prevalent in Australia, however they aren’t always based on obvious factors.”

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