As companies continue to strive to fill jobs with the best talent, their search often ends with hiring candidates sourced from outside of the company. A 5-year study of executives at US hi-tech manufacturing companies examined the role that the external labour market plays in gender pay differences. While female executives were found to have higher compensation than comparable men, the results indicate that women hired externally receive less than those hired internally, and as such may be disadvantaged by the external labour market.
Key Topics: Gender pay gap; External labour market; Executive compensation; Promotions; External recruitment
Gender pay gaps continue to persist in many countries, despite direct intervention by governments, regulators, and companies alike. So why does this apparent gender pay inequality continue? A recent German study examined some of the underlying mechanisms relating to perceptions of fair pay and found that both men and women held the belief that lower pay for women was fair. These beliefs appear to be formed and ‘legitimized’ based on people’s experiences of pay inequality in their own occupations and experiencing more value placed on the input of men in the workplace.
Key Topics: Gender pay gap; Fair compensation; Performance evaluation; Pay inequality
In many countries, gender diversity in the workplace is a hot topic and the role of women on corporate boards and compensation committees has come under scrutiny from regulators and legislators. A recent study of US companies examined the effect of compensation committee gender diversity on CEO compensation. Unsurprisingly, women were found to be underrepresented on compensation committees, however of the female members that there were, they were found to be younger and less experienced that their male counterparts. Additionally, greater gender diversity on compensation committees was not found to significantly influence the determination of CEO compensation.
Key Topics: Compensation committee; Gender diversity; Executive compensation; CEO compensation
Status inconsistency, which refers to situations where there is a mismatch between someone’s income and their background, can lead to various employee workplace outcomes both positive and negative. A recent study examined the relationship between status inconsistency and the personality traits of agreeableness and dominance to determine, and if the relationships differed by gender. The results found there were indeed differences in the level of status inconsistency depending on levels of agreeableness and dominance, and that these effects differed by gender.
Key Topics: Agreeableness; Dominance; Gender; Status inconsistency
With the ever-growing spotlight on gender pay differences and many companies implementing plans to address perceived issues, a timely study in the US examined the approach of men and women to salary negotiations in an attempt to determine if it was a significant determinant of gender pay differences. The study results indicated that, when applying for a job, men were more likely to negotiate for higher pay under certain conditions, while women were more likely to accept a lower wage.
Key Topics: Pay equity; Gender; Pay negotiation; Gender pay gap
As the battle for talent continues, companies are increasingly looking toward non-traditional methods to attract key talent, with one such tactic being the use of non-financial rewards. To examine the effectiveness of non-financial rewards, researchers in South Africa looked at the influence of work-life balance, learning, and career advancement on the attractiveness of jobs to potential employees. The results indicated that the presence of all of these reward types increased job attractiveness, but the attractiveness effect was greater on women.
Key Topics: Non-financial rewards; Talent attraction; Recruitment; Retention
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