By Annie Rosencrans, Director of People and Culture, HiBob Americas
In the ongoing pursuit of workplace fairness, it is true to say that progress has been made, yet the widely reported disparities in pay and workplace advancement suggest there's still ground to cover before achieving true employment equity for women.
Despite advancements in this space, another gap persists: the polarity between how men and women perceive fair pay, promotions, and gender diversity in leadership, and with many companies shrouding salary information, the issue deepens, contributing to a sense of injustice in the workplace.
Based on the latest findings from HiBob's US Women Professionals in the Workplace report, we explore the details and what they mean for achieving genuine equality in professional environments.
In January 2024, we conducted a study involving 2,000 full-time professionals aged 25 and above. This research aimed to uncover insights into their roles, perspectives, and encounters in the workplace, with a focus on how gender might influence these dynamics. The report aimed to unearth any disparities in recognition, opportunity advancement, compensation, and overall workplace satisfaction between men and women. Through this research, we aimed to contribute valuable data to the ongoing conversation about gender equality and diversity in professional settings.
The first key finding indicates that clear imbalances in the way men and women see pay and promotions remain stubbornly in place with 80% of men believing in promotion parity compared to 61% of women. Twice as many women (35%) feel that men are promoted more frequently than women (16%).
Actual promotion data shows more men (38%) received promotions with pay increases in 2023, compared to 32% of women. Furthermore, a significant gap appears in benefits enhancements with twice as many men (17%) receiving these than women (8%).
It also proved women are having to delay their career aspirations. For example, 12% of women expect, or are hoping for, promotions in 2024 after not receiving them in the previous year, compared to only eight percent of men. Moreover, twice as many women as men didn't get promoted in 2023 and don't expect one in 2024.
These findings highlight the persistent inaccuracies between genders around how men and women are recognized or rewarded at work. Not only do these shed light on the significant challenges and inequalities that women still face in the corporate world, they also call out the potential harm these misconceptions can cause, hindering progress and the drive for change.
It's also concerning that 22% of women sense bias against working mothers during promotion cycles. This perception extends to salary beliefs, with 34% of women thinking men earn more for the same roles, contrasting with 82% of men who believe pay is fair.
This next statistic is pivotal, setting the context for everything discussed earlier: 82% of respondents reveal that their organizations keep salary details under wraps. This lack of transparency only worsens the situation, hindering advancement toward fairness in as much as you can’t fix a problem you are led to believe no longer exists. The lack of salary transparency is a significant part of the problem that will only prolong the issue.
Adding to the complexity, there's a prevailing sentiment among women that their companies aren't fully committed to nurturing female leaders, with nearly a third of women (29%) perceiving a lack of visible efforts, in stark contrast to just 15% of men. This disparity underscores the obstacles faced by female professionals, who are feeling undervalued or less qualified due to their gender.
These findings are a reminder that organizations must proactively address both the perceived and tangible gender biases that remain in the workplace, because a culture of fairness, equity, and transparency in pay structures is not just a moral imperative but also a strategic business decision. In acknowledging these disparities, companies can better align with the evolving expectations of their workforce, and enhance employee morale, engagement, and retention.
Moreover, prioritizing compensation parity in the workplace is instrumental in attracting and retaining top talent. In today's competitive job market, prospective employees are increasingly scrutinizing companies' commitment to diversity and inclusion. Organizations that demonstrate a genuine commitment to act with openness and without bias are more likely to attract diverse talent pools, thereby enriching their workforce with varied perspectives and skills.
Furthermore, addressing the differences of opinion is crucial for organizational success and sustainability. Studies consistently show that diverse teams outperform homogeneous ones, leading to greater innovation, problem-solving, and overall business performance. By cultivating an environment where all employees, regardless of gender, feel valued, respected, and empowered, organizations can unlock the full potential of their workforce and drive long-term success.
In conclusion, while achieving equal experiences for men and women in the workplace may pose significant challenges, it is a journey worth undertaking. By prioritizing fairness, equity, and transparency, organizations can not only create a more inclusive and supportive work environment but also position themselves as employers of choice in an increasingly competitive landscape.
Annie is the Director of People & Culture at HiBob. She oversees all things HR for HiBob’s North American team while serving as a strategic business partner to the global sales function. Annie loves HR tech and has led People Operations for several high-growth organizations, including NY-based startups, Namely and Knotel. She brings a breadth of experience across the HR field, focusing on HR transformation and change management.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.