India scores high on gender gap compensation issue

This is one gender gap that India seems to be addressing a lot better than a lot of nations. An independent report compiled after a survey of 32,000 plus workers in 17 countries showed that the male-female pay gap in India was lower than the global average.

According to a report by The Economic Times, ‘ADP Research Institute’s People at Work 2023: A Global Workforce View’ has found that while male workers in the country had their wages rising by 7.2% on average in 2022, that of women rose 7% for women. This compares favourably with the global average where men enjoyed a 6.7% average rise vis-à-vis only 6% for women.

Furthermore, the report stated that male and female workers in India think their compensation would increase at 8% — the same rate as earlier year in the next 1 year.

“While rewarding experienced talent is essential, it’s equally vital to meet the expectations of the youngest generation entering the job market. Ignoring the compensation needs of Gen Z could prove short-sighted, leading to low morale among younger employees and failing to engage with the next generation. Embracing and meeting their expectations at the workplace is not just an immediate concern but a strategy for long-term success,” said Rahul Goyal, MD, ADP India & Southeast Asia.

India has also recorded substantial improvement in diversity, equity and inclusion (DEI) initiatives since FY21. In fact, on this score it has risen to the top of the pack in the Asia-Pacific (APAC) region. As much as 59% of the respondents surveyed in India have admitted that improvements in DEI measures in recent years. This is higher than China (where 57% of the respondents admitted the same), Australia (42%) and Singapore 35%.

Looking at the other side of the coin, only 6% in India said employers did not undertake any DEI steps. The comparative share of Australian respondents was 24%. For Singaporeans it was 21% of Singaporeans and 11% for the Chinese. For respondents in Europe, it was 30%.

About 63% of the Indian respondents expressed confidence in their employer’s progress toward achieving gender pay equality since FY21. Major Asia-Pacific economies were far behind with China at 51%, Australia at 34% and Singapore at 31%.

Male workers benefitted from slightly higher pay rise than women, but they were slightly more dissatisfied with compensation than women peers. The share of male workers who were satisfied about their pay was 25%. The share of women who thought the same was 31%. Overall, 49% of workers continued to feel underpaid. However, 17% said they felt overpaid.

In India, senior employees saw significantly higher pay increases last year compared with the younger workers. Those above 55 recorded an average pay rise of 10%. The pay rise for those in the 18-24 age was 6%. Workers between 25 and 30 years received 7% raise on average. The raise inched up to 8% the 35-44 and 45-54-year age groups.

This rate of raise also shapes their expectations of pay rise in the future. Those aged 55 and above anticipate the highest average pay hike of 11%. The expectation falls to 9% in the 35-44 and 45-54-year age groups. The expectation in the 25-34-year age bucket further decelerates to 8%. The lowest expectation is in the 18-24-year age group where they are hoping for a 7% rise.