Google AI
The Times Australia

Times Media Advertising

New research reveals employee pay gaps exist across 2 in 3 organisations

  • Written by: News Company

An industry association has released new data that shows that large-scale pay rate discrepancies occur in 2 in 3 organisations.  

The findings come from a survey commissioned by the Australian Payroll Association (Australian Payroll Association) – Australia’s leading network in payroll training, consulting and advisory – asked 601 payroll managers across the country’s big and small businesses and across a multitude of different industries where they mostly see pay gaps.

Overall, 69 per cent of payroll managers admitted that they see significant differences in pay rates between employees who do the same work or have similar responsibilities.

Among these respondents, 54 per cent said they saw experience and longevity in the company as the biggest factors behind a pay gap. Specifically, 30 per cent said they saw a pay gap mostly between less experienced and more experienced employees, while 24 per cent said they saw the disparity mostly among new employees and those who had been with the organisation for longer.

Being well networked and playing politics seems to get employees ahead. One in 5 (20 per cent) of payroll managers see pay gaps mostly between those who play politics well and were well networked in the organisation compared to those who don’t do either well.

Sixteen (16) per cent of payroll managers felt that pay discrepancies occurred mostly between employees who did and didn’t work in departments that bring in, or are responsible for, more of the company income.

Just 7 per cent of payroll managers that saw variations in pay for the same work claimed that it was mostly due to gender differences, while 2 per cent stated that it was because of an employee’s age. 

Pay gaps more widespread in larger organisations

The survey revealed that just 58 per cent of payroll managers in small business (1-50 employees) saw pay gaps between employees who do similar work or have similar responsibilities. This statistic jumped to 75 per cent of payroll managers in organisations with 500-10,000 employees.

Small organisations were twice as likely to have pay discrepancies between less experienced and more experienced staff members: 28 per cent of payroll managers in small businesses (11-50 employees) see these differences in pay, compared with just 14 per cent of payroll managers in large organisations (500-10,000 employees).

In contrast, 21 per cent of payroll managers larger organisations (500-10,000 employees) saw a pay disparity between employees who were new and with the organisations longer, compared with just 11 per cent of payroll managers in small businesses (1-50 employees).

By a similar token, 16 per cent of those in large organisations (500-10,000 employees) reported more differences in pay rates between employees who worked in areas that brought in less company revenue or more revenue, compared with just 7 per cent of payroll managers in small businesses (1-50 employees) who said the same thing. 

Not all industries are made equal

The survey highlighted the factors that might contribute to pay inequality across various industries.

Payroll managers in manufacturing (37 per cent of respondents) and building and construction (35 per cent of respondents) saw pay differences mostly between less and more experienced employees – more than any other industry.

Thirty-one (31) per cent of payroll managers in IT and telecommunications reported that the inequality in pay occurred mostly between new and long-standing employees – a rate higher than in any other industry.

One in four (20 per cent) of organisations in the professional, scientific and technical services attributed the disparity in pay to not being in a part of the business that earned the most revenue – a rate higher than in any other industry. In fact, only seven (7) per cent of those in the financial and insurance services reported this as the main cause for pay discrepancies.

Employees in education and training were more likely to face differences in pay if they did or didn’t play politics or networked inside the organisation – a reason chosen by 27 per cent of payroll managers in this industry.  

Tracy Angwin, CEO of the Australian Payroll Association says, “Our research shows that pay gaps are still prevalent in the Australian workforce, however they aren’t always based on obvious factors. We knew that a reliable group to base our research on would be payroll managers, who are responsible for processing employee payslips and have visibility to individual salaries.

From both my, and payroll managers’, experience, discrepancies in pay packets can be due to a myriad of reasons. While there is no legislation that rules out pay inequity between employees who have similar responsibilities, employees must be paid more than the minimum required by law. For organisations who want to eliminate the gap I recommend they regularly analyse and monitor their payroll data. Often, it’s helpful to have this carried out by independent expert consultant or specialist payroll company, who can assess any gender and other pay gaps, and incorporate this into their monitoring process.”

Australian Payroll Association’s pay rate results, taken from 601 payroll managers

 

Q. In your work, do you see a significant difference in pay rates between any employees who do similar work, or have similar responsibilities?

 

% of respondents

Yes, the difference is mostly between less experienced and more experienced employees

30%

Yes, the difference is mostly between new employees and those who have been with the organisation for longer

24%

Yes, and I think the difference is mostly between those who play politics well or who are well networked in the organisation, and those who don’t/aren’t.

20%

Yes, and I think the difference is mostly between employees who work in an area of the organisation that doesn’t bring, or is responsible for, in a lot of income to the company, and those who work in an area that brings, or is responsible for, more income.

16%

Yes, the difference is mostly between men and women

7%

Yes, the difference is mostly between younger and older employees

2%

 

Find out more. Get in touch with The Times.

Invalid Input
Invalid Input
Invalid Input
Invalid Input

Property Times

The Hidden Financial Risks of Self-Managing Your Australian Investment Property

For many Australian property investors, the initial appeal of self-managing a rental property is based on simple mathematics. By bypassing professional management, landlords hope to save the standard six to ten percent agency fee and maximise their a...

Australia's Property Market Is Adjusting. So Are Buyers

Australia's housing market is entering a new phase. For much of the past decade, buyers became accustomed to rising prices, fierce competition and the belief that property values would continue climbing over the long term. Today, the market feels ...

Melbourne Real Estate Road Trip: North of the Yarra

Part Two of The Times' Melbourne property road trip series. Last week we explored Melbourne south of the Yarra River. This week we head north, where the city's personality changes dramatically. North of the Yarra is a mix of established inner-cit...

Property Market Faces a Perfect Storm as SMSF Tax Changes Reshape Investment Decisions

Australia's residential property market has entered a period where multiple economic and political forces are converging at once. While interest rates have dominated headlines over the past two years, they are no longer the only factor influencing ...

Food & Dining

Masterchef's Flat Iron Steak available at Coles

Coles is giving customers the chance to cook like a MasterChef, launching a new 100% Australian No Added Hormones Beef Flat Iron Steak, following its starring role in Monday night's episode of MasterChef Australia. Featured in a challenge set by C...

Macca’s introduces new McSmart range with more choice from $6.95

Macca’s is launching its new-look McSmart range from Wednesday,1 July, with  three new meals at three price points.More than 30 million McSmart meals have been sold across the country over the past 12  months, with McSmart becoming a go-to option for...

The Economics of a Cup of Coffee: Is Your Daily Cappuccino Costing More Than You Think?

For many Australians, a morning coffee is no longer a luxury. It is a ritual. A quick stop at the local café for a cappuccino, latte or flat white has become part of daily life. But with café coffee regularly reaching $7 per cup in many parts of A...

Two Modern Twists on the Iconic Martini Recipe: Your Guide to Celebrate World Martini Day Your Way in 2026

Few cocktails have achieved the cultural status of the martini. A fixture of cocktail culture for decades, the iconic serve has even earned its own day, with World Martini Day to be celebrated on Saturday, 20 June 2026.  Simple, sophisticated and ...

Business Times

Business Ideas Changing the World

Every generation of business leaders faces its defining challenge. For some, it was rebuilding after war. For others, it w...

Build Your Business on Land You Own

Why every startup should own its website, domain name and customer relationships Starting a business has never been easier...

Workplace shift: Australians turn to career pacing as pay satisfa…

More Australian employees are prioritising flexible working arrangements over pay and job security, new research from globa...

Technology

Why Australian Enterprises Are Reth…

The corporate landscape in Australia has undergone a permanent structural shift over the past few ...

Local News

QLD Day

On Saturday 6 June, parkrun events across the state will be a sea of maroon, with communities  str...

Culture

Bacteria Found in Baby Wipes: Should Australi…

Parents rely on baby wipes every day. Whether changing nappies, cleaning little hands or wiping me...

Travel

Sri Lanka: An Island Adventure That Delivers …

For Australian travellers looking for a destination that combines tropical beaches, ancient histor...

The Times Features

The Hidden Financial Risks of Self-Managing Your Austra…

For many Australian property investors, the initial appeal of self-managing a rental property is bas...

The Hidden GST Traps Catching Out Australian Property D…

Australia's construction and property sectors are navigating an incredibly volatile environment. Acc...

Small Exterior Upgrades That Improve Street Appeal With…

Introduction: Why Street Appeal Matters in the Australian Property Market In the Australian propert...