For small and mid-sized businesses, the pay gap is even more unequal than the national average (.66/$1). Here's the story and ideas on how to close the pay and perception gap.
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Zenefits Fair Pay Report
1. Doesn’t perform like
an underachiever.
F A C T //
Women who work for Small Businesses get paid an average of 34% less
than men. That’s 66 cents for every dollar earned by a man. That’s not
going to fly. Let’s close the gap on equal pay.
Learn how by visiting zenefits.com/equalpay#equalpayday
Shouldn’t get paid like one
2. F A C T //
People with Master’s degrees earn 38% more than average employees.
Yet in their first five years of work experience backed with a master’s
degree, women get off to a disadvantaged start earning an average of
56% less than men.
Took the same four
years of classes.
Should collect the
same six figures.
Learn how by visiting zenefits.com/equalpay#equalpayday
3. F A C T //
76% of people who negotiate get a better offer, yet only 36% of wom-
en actually negotiate a final offer. Ask how pay consistency is ensured;
then speak up and ask for what you’re worth.
Chances your boss is a
mindreader?
0%
Learn how by visiting zenefits.com/equalpay#equalpayday
4. F A C T //
13% of small businesses are transparent about how they pay their peo-
ple. All people at those companies are 22% more likely than average to
feel like they are fairly paid. Comfort, delivered.
Right outside
your comfort zone.
That’s where the
raise happens.
Learn how by visiting zenefits.com/equalpay#equalpayday
5. Learn how by visiting zenefits.com/equalpay#equalpayday
Time for a
reality check.
F A C T //
91% of employers believe their employees are satisfied with the
company efforts at compensation, hiring and development, diversity
and culture. About half of their employees disagree.
Clearly it’s time for a chat.
I F Y O U ’ R E A S M A L L B U S I N E S S O W N E R ,
You think you’re doing what’s right for your
business and your people. Yet there’s a sizable gap
between your perception and their reality.
51%
C O M P E N S A T I O N G A P :
93% of SMB owners think their staff is happy with their compensation.
Only 55% of employees agree.
52%
50%
63%
H I R I N G A N D D E V E L O P M E N T G A P :
D I V E R S I T Y A N D I N C L U S I O N G A P :
P U R P O S E G A P :
92% of owners think they’re bringing in and training their teams well.
Only 54% of their teams agree.
93% of owners feel like they are inclusive.
Only 56% of their people see it that way.
89% of owners think their social good programs are on target.
Just 46% of their people agree.
44% C U L T U R E G A P :
91% of employers think their culture (how things are done),
is aligned with their people.
58% of their people buy in.
6. Employees are 22% more likely to feel a company pays equally
regardless of gender if the company is transparent about salaries
and removes the need to negotiate. Today about 13% of small
businesses share their employee pay data. It’s a start, but there is
still a long way to go.
T I P //
Know your market. Understand the benchmarks for similar salaries
and compensation by titles and roles in your industry and geography.
Establish standardized compensation plans with pay bands for similar
roles, let people know where they stand and then show them how to
advance. Pay employees based on their skills, value, and performance,
not how well they negotiate. Oh, and stop asking what they made at
their last job (that’s illegal in a growing number of states).
Be transparent about
a compensation
framework you can
articulate.
Learn how by visiting zenefits.com/equalpay#equalpayday
Tip for small business owners who want to zap the gap
7. No one has a better perspective on the real employee experience than
the people who are living it day in and day out.
T I P //
Gather regular —anonymous— feedback from your people on what
matters most to them about their jobs, their level of autonomy, their
sense of purpose and their ability to learn within your organization. Ask
what programs they are aware of, what’s going well and what could be
better. Then use that information to improve your practices and your
communications about those practices. Rinse and repeat.
Be a good listener.
Learn how by visiting zenefits.com/equalpay#equalpayday
Tip for small business owners who want to zap the gap
8. Be about diversity
and inclusion - for
the right reason.
Diversity and inclusion aren’t about checking boxes, hitting quotas or
“assimilating”. They’re about smarter business. You need differences in
race, gender, ethnicity, age, background, education, personality and
experience to think more creatively, empathize with your customers
and make the best informed decisions. And businesses with at least
15% female or diverse representation on the executive team, drive 50%
better growth that those with less than 10% management diversity.
Tip for small business owners who want to zap the gap
T I P //
Stop making diversity a compliance program about disadvantages and
start making it your competitive advantage.
Learn how by visiting zenefits.com/equalpay#equalpayday
9. Learn how by visiting zenefits.com/equalpay#equalpayday
Be vocal
about purpose.
People want to feel a sense of purpose. In fact, many of them rank
feeling a sense of purpose as a key reason for staying in a job.
Remember, it’s not always all about pay.
Tip for small business owners who want to zap the gap
T I P //
Do regular pulse surveys to understand what matters most to your em-
ployees and then encourage employees to drive social purpose. From
voting on where the company socially invests to allowing employees to
volunteer their time and talents to causes that are meaningful to them.
It’s time to promote and reward every effort.
10. Learn how by visiting zenefits.com/equalpay#equalpayday
Create a culture of
transparency and
communication
Culture may start at the top, but it’s lived by every employee, every
day. A great culture is where people can work without hassle or fear,
where there’s transparency and clear communication: no mystery
about what’s taken out of a paystub or how PTO is allotted or what the
benefits package is really worth.
Tip for small business owners who want to zap the gap
T I P //
Acknowledge the current employee experience and make intentional
and incremental improvements. Understanding and changing culture
starts by listening.