The gender pay gap might be closing and interest rates are on hold, but when it comes to pay rises, women just aren’t keeping up with the pace.
The latest ADP Research Institute’s People at Work 2023: A Global Workforce View, reveals that in Australia, women’s salary increases are failing to keep up with men’s – moreover, they anticipate a continuation of this trend in the year ahead.
According to the survey, Australian pay rises in the past 12 months averaged 5.7% for men, compared to only 4.4% for women.
In the next 12 months, men expect to see their pay increase by an average of 6.3%, while women foresee an increase of just 5.2%.
The results come as the threat of recession continues to loom and cost of living pressures are hurting everyday Australians, prompting the Reserve Bank to leave the cash rate unchanged at 4.1%.
People are grappling with genuine financial difficulties including the in utility prices, rental increases and interest rates. But what’s perhaps even more disheartening is that women are not being paid in a way that enables them to contribute equally to household expenses.
Not surprisingly, the ADP research found that women are more inclined than men to perceive themselves as being underpaid for their work, with 60% of women expressing this belief, in comparison to 56% of their male counterparts.
Kylie Baullo, Managing Director ANZ at ADP, comments: “Despite the ongoing discussions regarding the gender pay gap, this data demonstrates that the disparity continues.
“This is particularly worrisome given the current economic challenges Australian workers are facing across all industries.
“There is an opportunity for employers to assess any existing inconsistencies and inequalities in employee pay. In doing so, employers can create a more equitable work environment, enhance staff morale and engagement, retain talent and ultimately drive organisational success.”
Older Australian workers also believe they’ll be overlooked by their employers when it comes to pay rise and bonus awards in the year ahead.
More than half (58%) of Australian Generation Zs (18-24-year-olds) expect to receive a pay rise in their current company in the next 12 months, compared to only 34% of those aged 55 and over.
Similarly, 21% of Gen Z believe they’re in line for a bonus, compared to 16% of those approaching retirement age.
Mrs Baullo says, “Failing to recognise the value of experienced workers is likely to have long-term consequences. Overlooking these individuals may lead to the loss of vital knowledge and skills as they seek better pay and conditions elsewhere.”
Financy writes about gender financial equality, diversity and inclusion. We also provide the software, Impacter which makes DEI performance easy and accessible for business. We also publish the quarterly Financy Women’s Index report which measures timeframes to equality in Australia. To stay up to date with us, subscribe to our newsletter.