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Pay gap woes: Australians believe colleagues with same titles are paid more

Nearly half of Aussies believe colleagues with the same title are paid more, HireVue report reveals

Report findings suggest skills-based hiring and merit-based promotions contribute to positive perceptions of DE&I programs

HireVue, the global leader in video interviewing, assessments, and text-enabled recruiting solutions, today announced the findings of its inaugural Equity in Hiring report which surveyed 2,000 Australian employees and 500 hiring leaders. The report found a significant gap in what HR leaders believe about diversity, equity and inclusion, and what employees are experiencing.

92 per cent of leaders say their organisation is set up for diverse hiring, with a further 85 per cent agreeing that people from varied backgrounds have equitable opportunities to advance their careers. Despite this assurance from leaders, the report findings have identified considerable room to improve employee confidence in three key areas:

- Equity in compensation and transparency: 49 per cent of employees agree there are significant differences in pay for employees with the same job title, and 51 per cent have been put off by roles lacking pay information. With 40 per cent of employees admitting to openly discussing pay levels with colleagues, Australians are valuing pay transparency now more than ever.

- Equity in job opportunities: 37 per cent of respondents say they have been discriminated against during a hiring process and of these - 44 per cent put it down to age, and 36 per cent to gender.

- Equity in experience and education: 47 per cent have been dissuaded from applying for a role following an employer’s request for a certain number of years experience. A further 37 per cent have been discouraged from applying for a role by the requirement for a specific educational level.

“There is no quick fix for workplace equity. Instead, dedication, skill and long-term commitment are required from leadership teams to drive change in all areas of the business - starting with hiring,” said Tariq Shabhan, senior assessments consultant at HireVue.

“Talent decision makers are the gatekeepers of opportunity, and by adopting practices that are grounded in evidence, these leaders have a chance to truly diversify their workforce. Perceptions of DE&I initiatives can vary significantly between employees and leadership. For a program to have lasting impact, it’s important to keep lines of communication open with organisations to encourage open and honest feedback.”

Data Reinforces the need for skills-based advancement

Faced with ongoing talent shortages, businesses of all sizes in Australia are getting rid of bloated education and experience requirements in favour of skills-based assessments and hiring approaches. Today, more than three in four (76 per cent) hiring leaders believe that there is equal opportunity for people without a degree to secure a role and progress their careers at their company. Removing degree requirements in particular helps level the playing field for candidates who have unequal access to higher education.

In spite of this emerging trend, nearly a third (30 per cent) of employees think having a higher education degree is key to securing a role, and a further 37 per cent have been discouraged from applying for a role by the request for a certain educational level. This is strong evidence that an objective measurement for skills-based hires and merit-based promotions is desperately needed.

Report is here


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