Does better pay equal better performance?

by Brett Henebery27 Jan 2017
An annual study developed by Robert Half – the world’s first and largest specialised recruitment consultancy – shows that Australian organisations are working hard to close the gender pay gap.
 
The survey was conducted in April 2016 by an independent research firm, surveying 100 Australian HR managers and part of the international workplace survey – a questionnaire about job trends, talent management and trends in the workplace.
 
According to the data, the gender pay gap is very real in Australia, with the latest gender equality scorecard – released by the Workplace Gender Equality Agency – stating that while women make up half of the nation’s workforce, they only earn 77% of men’s average full-time income.
 
 
Below are some of the findings:
 
  • 89% of Australian HR managers identify a gender pay gap within their organisation.
  • 97% are taking measures with the aim to close the gender pay gap.
  • 31% say they are implementing pay transparency procedures aimed at closing the gap, a figure that rises to 48% in large organisations.
  • 36% recognise the need to implement a system where promotions are linked to fixed pay rises.
 
The fact that managers are aware of this bodes well for L&D professionals, says Nicole Gorton, director, Robert Half Australia, who pointed out that fair remuneration policies lead to higher performing staff.
 
However, she added that women today are more ambitious than ever and high-performing female professionals need to be adequately compensated at a level on par with their male counterparts.
 
“Today’s female professionals have more opportunities available to them – the pay disparity continues which highlights the need for companies to take action. Pay transparency will put the onus on employers to have to justify pay decisions,” she said.
 
“It is encouraging to see Australian companies actively aiming toward closing the gender salary gap, which not only promotes ethical business practices, but it can also lead to higher productivity within organisations as competitive and fair remuneration policies tend to lead to higher performing staff.”
 

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