Men in India, on an average, are paid overall 16.1 per cent more than women, same as the overall gender pay gap that has been observed across the globe.
An in-depth global analysis by Korn Ferry has just revealed that men in India, on an average, are paid overall 16.1 per cent more than women, same as the overall gender pay gap that has been observed across the globe. Germany, Brazil, UK and the US have even higher gaps with, 16.8, 26.2, 23.8 and 17.6 per cent respectively. The study shows that the much-publicised pay gap between men and women is real, but it is predominately caused by fewer women than men in higher-paying roles.
The Korn Ferry Gender Pay Index was compiled using information from Korn Ferry’s pay database and is an analysis of gender and pay for over 12.3 million employees in 14,284 companies in 53 countries across the globe.
The truth about the Gender Pay Gap Globally
When comparing pay between genders overall, the study found that globally, on an average, men are paid considerably more (16.1 per cent) than women. However, the Index found that, when evaluating the same job level, such as director, the gap fell to 5.3 per cent globally. When considering the same level at the same company, the gap further reduced to 1.5 per cent. And when the male and female employees were at the same level and the same company and worked in the same function, the average gap amounted to 0.5 per cent.
“Our data shows that women earn about 16 per cent less than men as a whole, which is a real, significant issue, but this doesn’t paint the complete picture,” says Bob Wesselkamper, Korn Ferry head of Rewards and Benefits Solutions.
“While there are still a number of organisations that pay women less for the same role, on an average, when we compared women and men in the same job, the gap was significantly reduced. This pay gap issue can be remedied if organisations address pay parity across the organisation and continue to strive to increase the percentage of women in the best-paying parts of the labour market, including the most senior roles and functions, such as engineering and other technical disciplines,” he adds.
The Pay Gap in India
In India, the overall gender pay gap at 16.1 per cent, is similar to the average global gap. When evaluating the same job level, the gap is four per cent, and when considering the same level at the same company, the gap fell to 0.4 per cent. When men and women employees at the same level and the same company worked in the same function, the gap fell to 0.2 per cent.
“Pay parity is still a very real issue, but it’s an issue that can be addressed if there is an ongoing effort to enable, encourage and select talented women to take on and thrive in challenging roles,” says Reena Wahi, client partner, Korn Ferry Hay Group. “Our research shows women have the skills and competencies needed to ascend to the highest levels within organisations, and it should be a business imperative for companies to help them get there.”