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Tuesday, September 8, 2015

90 per cent employees feel there is no pay parity in organisations for same role: JobBuzz survey


MUMBAI: Despite all the talk about pay-for-performance, India Inc. is being blamed for playing favorites when it  comes to pay parity at the same level. A survey by JobBuzz.in, the employer rating platform from TimesJobs.com has revealed that a majority of employees
believe their companies pay external hires and favorites more - 90 per cent feel  there is no pay parity in their organisations for the same role and level. 

The pan-India JobBuzz.in survey received 975 valid responses from working  professionals across experience levels. When asked if employees working at the  same level in their own company had different pay packages, 90 per cent said  yes. Nearly 40 per cent of the professionals feel this salary disparity is due  to external hires being paid more while 35 per cent say it is due to favoritism  by managers. Only 5 per cent reason the disparity is the result of better  individual performance. 

"Salary disparity is a highly sensitive subject across all experience  levels. Employers need to address aberrations and correct misperceptions  tactfully as these directly impact employee motivation, performance,  productivity and loyalty. It is essential for companies to conduct  salary-benchmarking surveys and correct actual and perceived inequalities in  compensation among their workforce. This will help them meet employee  expectations and significantly improve performance and motivation levels." says Vivek  Madhukar, COO, TimesJobs.com in a release.

All respondents report  differences in their salaries, compared to colleagues at the same level in their  own organisations. According to the JobBuzz.in survey, 21 per cent employees
feel that there that is more than a 30 per cent difference in salaries among  people working at their level while 27 per cent feel that there is a 20-30 per  cent salary disparity in their own companies.

Most employees (34 per cent) report a 10-20 per cent difference in salaries of  others with the same rank as them. Only 18 per cent respondents say that the  disparity in their company's compensation packages for the same level is below  10 per cent reports JobBuzz.in.

This JobBuzz.in survey covered 429 women and 546 men. On the gender front,  many employees feel there is still a significant salary disparity between the  genders for the same profile. Nearly 43 per cent employees say there is a considerable difference in the salaries paid to male and female  employees for the same role and level in their organisations.

Nearly 25  per cent respondents held that the level of salary disparity between male and  female employees ranges between 10 and 20 per cent. And 21 per cent employees  feel there is 20-30 per cent disparity between male and female employees.  Another 7 per cent employees say the disparity is higher than 30 per cent in  their own companies.

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