Women in the workplace worse-off financially than male counterparts

Gender inequity continues to be a problem even though gender pay gaps and workplace equality are core focal points for organizations across Canada.  

The Equity, Diversity and Inclusion Report by international recruitment consultancy Robert Walters shows an overwhelming 40 percent of female professionals feel underpaid for what they do – with a tenth of women in white-collar roles resorting to additional means of income such as credit cards or weekend jobs. The data reveals just 39 percent of women earn a salary of $75,000 or more - 28 percent less than men.  

Adding into the equation the additional rise in cost-of-living, women appear to be more impacted – in fact, just a quarter (25 percent) of women feel as though they can live comfortably with a good amount of disposable income for savings or purchases of their choosing. 

Gender biases and inequalities persist 

“These figures highlight persistent gender biases and inequalities in pay and benefits, contributing to the ongoing issue of women being financially disadvantaged in the workplace,” says Coral Bamgboye, global head of ED&I at Robert Walters Canada. “While the gender pay gap has narrowed over recent years, we still have a significant way to go. Our research indicates that men remain to be on higher wages, feel more satisfied with their salary, and are far more likely to receive a pay rise should they request it.  

“As the cost-of-living crisis continues to prevail across Canada – intensified further by record lows on new year bonuses and pay rises – employees are relying on their salaries and job security more than ever. However, with more women reporting that they live ‘paycheck to paycheck' compared to their male counterparts, we have a serious issue on our hands which could cripple the female workforce in terms of motivation, productivity, and all-round wellbeing.” 

According to the Robert Walter survey, of those professional women who did receive a pay increase this year, the majority got below the current rate of inflation – with 32 percent receiving a pay increase of one to five percent. Just nine percent received an increase of 21 percent or more; compared to twice as many men (19 percent) who earned the inflation busting increase.  

Just a quarter (25 percent) of women have received near 75 to 100 percent of the pay rise that they requested, with double the number of women than men stating that they received nothing following negotiation. 

A further quarter of women (24 percent) have admitted that they have not received a pay increase at all within the past 12 months. This is particularly concerning when we address that in 2022, Canada saw the largest increase in Consumer Price Index since 1982 - increasing by +6.8 percent from 2021.  

“Such disparities can lead to dissatisfaction, demotivation, and decreased retention among female employees, ultimately impacting organizational performance and reputation,” says Bamgboye. 

Women hesitant to negotiate salaries 

Despite that the need for higher salaries and monetary benefits is evident from women, many are facing barriers which prevent them from negotiating.  

Almost a fifth (16 percent) admit to being hesitant in negotiating salaries because they do not believe their employer will provide the pay rise. A further double the number of women than men stated that they felt a lack of confidence or embarrassment when it comes to negotiating for better pay.  

“The gender pay gap has been prevalent for as long as the modern economy has and because of this, women should be supported by their employers in a way that makes them feel comfortable and confident when it comes to salary negotiation,” says Bamgboye.  

“While organizations work to bridge the gap, employers need to be more prepared to address issues and make changes – particularly when it comes to appraisals and benchmarking salaries more fairly, without waiting for employees to seek fair pay themselves.  

“Employers must remember that we’re in the midst of a talent shortage, if women find it significantly more difficult getting by on their current wage, particularly as we navigate through this tough economy, it may be more appealing to look a new job rather than preparing for conversations around salary negotiation – especially when many believe these conversations won’t be successful.”  

Bamgboye says employers must take proactive steps to address the gender pay gap and ensure equitable treatment. They can: 

• Implement transparent salary structures and conduct regular pay audits to identify and rectify disparities 

• Provide training and support for women to negotiate salaries confidently 

• Offer equal opportunities for career advancement and access to benefits 

• Create an inclusive work culture that values diversity and promotes gender equality 

The Benefits Gap 

The report says men are also twice as likely to receive additional monetary-based perks than women, with 25 percent of men compared to 19 percent of women receiving a retirement savings plan; 19 percent of men compared to 11 percent of women receiving a bonus scheme; 12 percent of men compared to six percent of women receiving equity or company stocks/shares; and 11 percent of men compared to six percent of women receiving a mortgage allowance.