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Gender pay gaps causing recruitment challenges for employees

  • Over a quarter (27%) of employers say they are aware of a gender pay gap in their organisation and this is negatively affecting staff attraction and retention
  • Almost one in five workers (18%) are aware of a gender pay gap within their organisation
  • Close to two-thirds of employers (65%) expect to encounter a shortage of suitable applicants in 2020

Over a quarter (27%) of employers say they are aware of a gender pay gap in their organisation and this is negatively affecting staff attraction and retention according to a new report.

The Hays Salary & Recruiting Trends 2020 guide found that of employers who said they are aware of a gender pay gap in their organisation (27%), 59% say it is negatively affecting their ability to attract talent, and 61% say it is negatively impacting staff retention. Employers in London were more likely to be aware of a gender pay gap in their organisation, as over a third (35%) said they were aware of this, higher than other regions across the UK.

The research, based on a survey of over 31,500 respondents also revealed employers continue to be challenged in finding the right talent as close to two-thirds (65%) of employers expect to encounter a shortage of suitable applicants when recruiting in 2020.

Staff are willing to leave employers because of perceived pay gaps 

Almost one in five employees (19%) say they are aware of a gender pay gap within their organisation. Of these professionals, 80% say it is an issue for them, 18% of whom say it is enough of an issue that they will leave their organisation or are considering leaving as a result.

Women are more likely than men to say they are aware of a gender pay gap at their organisation (22% compared to 16%). Of those who are aware of a gap, 87% of women consider it an issue compared to 70% of men. Over a fifth (22%) of women say it is enough of an issue for them that they either will leave or consider leaving their organisation, compared to only 12% of men.

Additionally, nearly three-quarters of employees (74%) say it is important that their organisation is transparent about how pay levels are set, yet two-fifths (41%) of employers say their organisation isn’t consistent with all employees about how salary rises are awarded.

Simon Winfield, Managing Director of Hays UK & Ireland, comments: “Transparency around pay is clearly becoming important for professionals, many of whom also perceive there to be gender pay gaps, which is negatively impacting on the attraction and retention of staff. Of those who are aware of a gender pay gap within their organisation, nearly two in every ten people are considering leaving as a result. Employers can’t afford to ignore these issues.

Transparency can help to narrow pay gaps between genders, so put into action practical steps, such as having clear promotion and pay structures, as well as setting and publishing pay levels.

Assessing the pay needs of your team on an ongoing basis and being transparent about how pay levels and rises are set can help address salary requirements before it’s too late. Pay shouldn’t be the taboo subject it once was.”

 

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For more information contact:

Helen Flannery, PR Manager, Hays

T: +44 (0) 203 0400 282

M: +44 (0)75 5579 70401

E: helen.flannery@hays.com

 

About the research

The survey was conducted in Summer 2019 and received 31,598 responses. It was completed by professionals from the UK working across a range of industry sectors. 11,047 of the respondents were deemed to be “employers” and 20,551 were deemed to be “employees”.

 

About Hays

Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2019 the Group employed 11,500 staff operating from 265 offices in 33 markets across 20 specialisms. For the year ended 30 June 2019:

 

– the Group reported net fees of £1,129.7 billion and operating profit (pre-exceptional items) of £248.8 million;

– the Group placed around 81,000 candidates into permanent jobs and around 254,000 people into temporary assignments;

– 18% of Group net fees were generated in Australia & New Zealand, 27% in Germany, 23% in United Kingdom & Ireland and 32% in Rest of World (RoW);

– the temporary placement business represented 57% of net fees and the permanent placement business represented 43% of net fees;

– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Chile, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA

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