Salary differences between men and women are a persistent global issue referred to as the “Gender Gap”. Almost everywhere in the world, the average salary of men is higher than that of women. This is, to a large extent, caused by the fact that women generally work in professions with lower financial compensation. The distribution of women across the individual salary brackets is significantly different than men. While a significantly higher percentage of women perform work falling within the lowest income group, at the same time, compared to women a higher percentage of working men perform work for which they receive the highest salary in the market. This is, to a large extent, related to the fact that only a few women work in top management positions. These are some of the findings of the analysis performed by the international salary portal Paylab.com.
The survey was conducted on-line from May to June 2017 in nine European countries using a sample of 40,262 employees through local salary portals under the Paylab brand and with identical data acquisition methods. The survey is part of PAYLAB COMPENSATION MONITOR which observes on regular basis trends related to remuneration.
Salaries and wages remain a taboo subject in European countries. Companies usually try to keep pay details secret, and most bind their employees to confidentiality agreements regarding salary details in their employment agreements. Very few employers publish salary and wage details in their job adverts. The tools used to define employment matters and collective bargaining at the sector level do not operate in the same exact way in some countries. People typically use on-line salary portals to get a better idea of the salaries and compensation packages being offered on the market, as they allow them to anonymously check salary benchmarks from other employees with the same job in the region. People, have, however, become accustomed to sharing salary details with those closest to them. In the survey, up to 59 per cent of the respondents agreed with the statement that their friends and acquaintances know how much they earn.
The higher the income, the greater resistance to salary disclosure.
Paylab also attempted to determine if attitudes towards pay and salaries vary by income level. The survey showed that people with higher or lower incomes were roughly just as interested in the pay of others. However, employees who earn less than average in the country are much more open to discuss their income with their surroundings. People in management positions are the least likely to share any salary details. Only half the employees in lower and middle management and 39 per cent of top managers agree that those closest to them know how much they actually earn.
Closing the pay gap between men and women
Roughly the same portion of men and women were interested in knowing how much their colleagues earn. Women, of course, are most affected by salary inequity, generally called the gender gap. More initiatives continue to appear in Europe calling for salary disclosure to increase transparency, especially with respect to the gender pay gap. Brussels issued recommendations three years ago to strengthen the principles of equal pay for men and women, and many countries have been inspired by these regulations. Employees in some countries have already been granted the right to see just how much their colleagues earn. For instance, in Germany, only those working in companies with more than 200 employees have the right to ask about the earnings of their colleagues. People are free to request information on the pay of their colleagues from the tax authorities in Finland and employee salary details have long been accessible on-line in Norway. Read more about this topic in Paylab blog post.
About the survey
The survey is part of PAYLAB COMPENSATION MONITOR which observes on regular basis trends related to remuneration. The international Paylab portal conducted the survey from May to June 2017 via its nine local partner portals using identical data acquisition methods from a complete sample of 40,262 respondents: specifically in the Czech Republic (www.platy.cz,9,491 respondents), Finland (www.palkkadata.fi, 3,011 respondents), Croatia (www.mojaplaca.hr, 4,227 respondents), Lithuania (www.manoalga.lt, 4,173 respondents), Latvia (www.algas.lv, 4,026 respondents), Slovakia (www.platy.sk, 9,157 respondents), Poland (www.pensjometr.pl, 582 respondents), Slovenia (www.placa.si, 4,054 respondents) and Serbia (www.infoplate.rs, 1,541 respondents).
Daniela Beráková, Communication & Content Manager for Paylab.com
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