A recent survey found there is a considerable salary gap among people working at the same level of employees in the organization. Nearly 40 percent of the employees cited higher packages to external hires and managers’ favourites. Over 90 percent of employees said yes, when asked if people working at the same level in their companies had different salary packages. While 35 percent of the respondents also felt that salary disparity is due to favoritism by bosses and 40 percent felt that people hired from outside are being paid more than existing employees for the same role. It was also noticed that over 20 percent said the difference in salaries could be due to difference in the years of experience among people at the same level. Only 5 per cent linked pay disparity to some employees being better performers. The survey was conducted with 980 employees among 56% male and 44% female.
Salary disparity is a major issue among the employees working at same roles and experience levels for an organization. Employers need to deal with confidentiality or tactfully otherwise it may impact employee performance, productivity and loyalty. The survey found that nearly 34 per cent felt there was a 10-20 per cent salary disparity among people working at their level while 27 per cent said the disparity was 20-30 per cent. Over 31 percent employees feel that salary gap was more than 30 percent and only 19 percent feel that salary gap was below 10 percent. The other interesting facts were nearly 77 percent feel that they were dissatisfied with level of pay disparity between them and their supervisors. There was salary disparity between male and female employees working in companies at the same level and profile. Over 48 percent said gender wise; it was below 10 per cent while 25 per cent said the gap was 10-20 per cent.