Dive Brief:
- A new study by Paysa.com, a career platform, found that 41% of women never ask their current employers for a raise. Paysa surveyed 2,000 professionals about salary negotiations and pay raises.
- The study also found that employers deny women a raise more often than men, at 42% versus 33%. When employers say they’ll turn down requests for pay increases, this discourages requests from 34% of women and 32% of men.
- One-in-three managers said the best reason to ask for a raise is performing high-quality work. And 39% of managers said asking for a 5% raise is asking for too much money.
Dive Insight:
The Paysa survey addressed the problems of asking for and negotiating a pay raise. But the survey also raises concerns about possible pay inequities. If 41% of women in the survey never ask for a raise and employers are denying their requests more often than male workers’, these practices could account for some inequities in women’s earnings. Employers must be wary of unfair practices and audit their own programs carefully.
More states have turned their attention to pay inequity, and are passing laws that ban employers from asking about past pay and more specifically protect women and minorities from being paid less for equal or similar work. Raises do a play a part in that, especially if the mechanism for granting raises is unfair for one group of people.
Notably, an Aon Hewitt salary survey expects wages to remain flat for 2017, despite a stronger job market. Employees who planned on requesting a raise this year could have their requests denied, regardless.
