New research reveals substantial compensation
gap between men and women in salary and bonuses; one-in-four
working women believe pay equity still not a priority in their
organization
TORONTO, March 19, 2019 /CNW/ - Compensation for
working Canadians still favours men, according to a new study by
Leger Research commissioned by ADP Canada. Based on self-reported
figures, men say they earn an average of $66,504 per year – 25.5% more than the reported
average of $49,721 for women. This
gap widens as it relates to additional compensation like bonuses
and profit sharing, where men report annual earnings averaging
$5,823 and women report an average of
$3,912 – a 32.8% difference.
The workforce also appears to be divided when it comes to the
perception of their employer's practices around pay equity. Nearly
80% of men believe that men and women are compensated equally
within their workplace, while less than two-thirds of women (62%)
believe the same.
Although a gap – actual and perceived – persists, the Canadian
workforce continues to apply pressure within their organizations to
achieve parity, with nearly half of all workers (45%) saying they
would leave their current employer if they found out that a
colleague of equal standing received preferential compensation
based on gender.
"It's alarming to see that in 2019 there remains an impactful
difference in compensation for Canadian men and women," says
Sooky Lee, General Manager, Human
Resource Outsourcing, ADP Canada. "With women comprising nearly
half of today's workforce and thriving in roles and
responsibilities that match their male peers, organizations – and
executive teams – that do not make pay equity a corporate priority
risk losing the ability to attract top talent."
With only 63% of executives indicating they believe men and
women are equally compensated, it is clear that senior leadership
teams recognize there is a pay gap issue; however, only 31%
indicate pay equity is a priority within their organization.
"Every Canadian organization understands the challenges
associated with attracting and retaining top talent in what is
becoming an increasingly tight labour market – and those poised to
succeed realize they cannot afford to expect a compensation
discount for half of the talent pool available based on gender,"
adds Lee. "Companies that build a culture around inclusion,
diversity, and equality in all forms – especially compensation –
stand to benefit greatly in the fight for talent."
Survey Details
The survey of 815 Canadians working in
full-time and part-time roles uncovered a wealth of insights around
the current state of compensation in the Canadian market. Some of
the most notable include:
- Women reported earning less than $30,000 at nearly twice the rate (26%) of their
male counterparts (14%)
- Millennials (9.8%) and those nearing the end of their careers
(aged 65+ - 12.6%) were most likely to report earning more than
$10,000 in additional non-salary
compensation each year
- Managers (72%) were the most likely group to believe that pay
equity is a priority in their organization, while executives
(31%) were the most likely to say it is not a priority in
their organization
- Millennials (52%) are the most likely to say they would leave
their current employer if they found out that a colleague of equal
role and standing but different gender received greater
compensation than they did
The survey also revealed interesting compensation and pay equity
trends across each of Canada's
major regions. Some of the most notable include:
Atlantic Canada
- Most likely (82%) to believe that pay equity is being achieved
– substantially more than the national average (71%)
- Second most likely (76%) to believe pay equity in additional
compensation is being achieved
Quebec
- Substantially more likely to believe that equal compensation is
being achieved in salary (78%), bonuses (77%) and pay equity as a
priority for management (77%) than the rest of Canada (66%)
- Much more likely (62%) to report no additional compensation
beyond salary than national average (49%)
Ontario
- Second least likely (65%) to believe that pay equity is being
achieved in terms of additional compensation, or that it is a
priority for their organization (63%)
Manitoba and Saskatchewan
- Most likely (24%) to believe that pay equity is not being
achieved when it comes to additional compensation like bonuses and
profit-sharing, and second least likely (63%) to believe it is
being achieved in terms of salary
- Least likely (60%) to believe that pay equity is a priority for
the management in their organization
Alberta
- Most likely (62%) to report at least some level of additional
compensation beyond salary annually
- Most likely (12%) to say that they do not know if pay equity is
being achieved in their workplace
British Columbia
- Least likely (61%) to believe that pay equity for salary is
being achieved in their workplace, but second most likely (74%) to
believe pay equity is a priority for the management in their
organization
- Second most likely (23.5%) to believe that pay equity in
additional compensation is not being achieved
Survey Methodology
An online survey of 815 Canadian full time and part time employees
was completed between February 1-4,
2019, using Leger's online panel. The margin of error
for this study was +/-3.4%, 19 times out of 20.
About ADP Canada
Powerful technology plus a human
touch. Companies of all types and sizes around the world rely on
ADP cloud software and expert insights to help unlock the potential
of their people. HR. Talent. Benefits. Payroll. Compliance. Working
together to build a better workforce.
For more information about ADP Canada visit www.adp.ca
or follow us on Twitter @ADP_CDA.
SOURCE ADP Canada