One in three women in Australia say they would leave their employer as a result of significant gender pay gap, according to the Pay Gap Matters pulse check by EvenBetter.ai.
The AI-powered startup, which uses use market benchmarks and analytics to identify the causes of pay gaps and recommend specific actions, surveyed Australian employees to understand how gender pay gaps influence their career decisions.
The survey revealed a clear connection between pay equity and employee performance with gaps reducing motivation, narrowing the talent pool and increasing turnover.
“It is the first survey of its kind in Australia to measure how pay equity shapes day-to-day workforce choices,” said Sorrel Kesby, Co-Founder of EvenBetter.ai.
“The results demonstrate that pay equity is a key driver of growth and a strategic priority for business leaders.”
The survey found that more than two-thirds (71%) of prospective female hires would think twice before applying to a company with a high pay gap. Nearly one in three men (29%) said the same.
Meanwhile 41% of women and 20% of men say the existence of a pay gap reduces their Motivation at work.
The findings come as the Workplace Gender Equality Agency (WGEA) reports that more than 7,800 Australian companies have an average gender pay gap of 20%. Over 3,000 companies have a pay gap considered high or very high, covering 1.6 million employees, including 750,000 women.
“This is about business performance,” said Ayal Steiner, Co-Founder of EvenBetter.ai.
“Leaders who treat pay equity as a growth opportunity can unlock stronger engagement, attract better talent and improve retention. Pay transparency is becoming more commonplace and when over two-thirds of prospective female hires screen out a company before the first interview, then that company’s recruitment funnel and overall performance are impacted.”
The findings also revealed a snowball effect, companies with larger pay gaps tend to attract more male candidates, which further widens disparities and erodes diversity over time.
“While the gender pay gap tends to have a greater impact on women, our findings show that the right balance is crucial for all employees, as men are also influenced by it when deciding where to work. This is about building the strongest and most diverse team to drive success,” Kesby added.
Top image: Sorrel Kesby