Women use the Great Resignation Threat to negotiate raises or else quit for higher pay or better opportunities elsewhere. Working women view the current labor market, with employers desperate to hire, as an opportune to negotiate for salary enhancements and signals a shift towards closing the wage gap.
Over 85% of working women believe they deserve pay increases, according to a survey of over 800 workers, with 63% believing that a resignation threat allows leverage for negotiation. About 47 million Americans quit jobs in 2021, for better pay and benefits, or more stable and accommodating work, being major reasons. In mid 2021, women who quit lower-paying jobs, saw an above-average income growth, without bridging the gender wage gap or that women are being employed in lower-wage work. Opportunities to adjust pay disparities must look at the gender wage gap, where 41% of women surveyed, say is a serious problem at work-places.
Employees discuss pay issues with each other
Economists have always said that by having greater pay transparency, it could reduce gender and racial wage gaps. The National Women’s Law Center says women average 82 cents for every dollar earned by a white non-Hispanic male, and for women of color, the situation is worse: black women earn 62 cents, native American women get 57 cents and Latina women are at the end of the spectrum with 54 cents for every 1 dollar that is earned by a white man. Sharing salary information among colleagues are a huge help, but discussing money is taboo and discourages women from securing internal pay data and preparing the case for a raise. Though 45% of women are comfortable enough to sharing pay details with a co-worker, only 29% workers actually do so. About 28% of employees confirm that their company discourages their employees from discussing their salary details with co-workers. As per the National Labor Relations Act., discussing pay particulars with colleagues is a legal and protected activity for private-sector employees
Workers demand greater pay transparency from Employers
Persistent wage gaps occur due to employer’s pay practices rather than about individuals preparing salary pitches. Federal and state laws seek to promote pay equity for decades, but corporate pay structures foster wage gaps for women and people of color without visible changes for ages. Employees are now more vocal about pay equity in the labor market, but disparities remain between the transparency employees’ desire and what they get. According to surveys, 63% of American employees prefer to work in companies that disclose pay information, but only 19% of employees confirm their company circulates pay ranges internally for employees.
Companies must be more open about pay practices as many cities and states have passed legislation requiring employers to list salary ranges on job ads or disclose pay ranges to employees requesting it. As employers compete for available talent, simply stating their wages are competitive means nothing unless they have numbers to back up claims. In today’s worker-focused job market, it’s an advantage for companies embracing pay transparency and encouraging people to talk openly about pay. There’s a need among job-seekers and employees for finding companies that encourage and value wage transparency.
Employers have to, by law, share salary ranges while hiring and assessing the money that you should be paid, before re-negotiating your salary. Companies refusing to be transparent about pay, will face problems as per salary experts.