The Underlying Reasons for the Disparity in Salary Increases
Requesting a salary increase is often postponed or avoided due to fear. According to the Buk study, “Work in Progress,” only one out of four people in Latin America negotiated their salary upon receiving an offer, with 27% of Mexicans doing so, and nearly 60% of them succeeding. It’s likely that most were men.
While lack of knowledge about when to ask for an increase is a factor, insufficient preparation and stereotypes play a significant role. The Buk study “Radiografía de las Mujeres en el Trabajo” (Radiography of Women in Work) reveals that women are less likely to request a salary increase.
“Differences in childcare and societal expectations can influence each group’s confidence when negotiating their salary,” the study explains. While 35% of men negotiate their salaries, only 33% of women do so. This gap widens among younger individuals.
The study indicates that while 29% of women from Generation Z have requested a salary increase, only 33% of men have done so, achieving a success rate 12 percentage points higher. This difference grows to 17 percentage points when considering maternity.
“Women with children are the group least likely to secure a salary increase once requested,” the research emphasizes. The reason is that there are biases suggesting women with children have less availability or commitment to their jobs, which can affect their performance evaluations.
Gender Gaps and Their Impact on Women’s Salary Increases
Gender gaps further complicate the issue. Mercer’s Total Remuneration Survey data shows that the salary difference between men and women in executive positions is 20%, while at professional and operational levels, it reaches 22%.
Although the Federal Labor Law aims to ensure not only decent employment but also equal pay, in practice, there is still work to be done. “Regardless of what the law says, economic reality is different,” states Fátima Masse, co-founder of Noubi Advisors.
In contrast, Gina Aran, an expert in Economics and Business Studies at the Open University of Catalonia, mentions that women typically do not negotiate or request salary increases because they believe they already have a “just remuneration” or haven’t reached the required level. They fear rejection and believe they might be seen as “greedy or ungrateful.”
She explains that when women secure a job, they rarely dare to ask for more, even if they deserve it, as they’ve been taught to be “content and grateful” for finding employment.
Fátima Masse reminds us that studies show women tend to be “less aggressive when negotiating salary,” as they perceive the offered amount as adequate, a common symptom of the impostor syndrome.
The issue is that women usually start with a lower salary than their peers, and they are less proactive in requesting an increase. When they do, the results don’t always yield fruitful outcomes, making their salary trajectory different from that of a man who didn’t start with this “disadvantage.”
The Role of Companies in Addressing the Issue
Noubi Advisors’ co-founder acknowledges that while confidence impacts and the impostor syndrome can be a problem, the challenge is deeper. The ecosystem, structure, and overall environment also alter these conditions.
“On the other side, there’s a company that says, ‘Hey, this girl came in, I was going to pay her 60, but she mentioned she earned 30 in her previous job, so I’ll offer her 45,'” and such effects exacerbate the disparities.
In this vein, she recommends organizations design clear job titles and salaries, for example, with “tables” outlining what someone in each position should earn. This transparency can also aid salary negotiation.
Similarly, the Mexican Institute for Competitiveness (IMCO) recommends standardizing salary gap measurement to understand each organization’s problem and enable companies to recognize their challenges and how to address them, preventing disparities. Meanwhile, workers, especially women, would benefit from better tools.
One proposal widely discussed in organizations is designing salary tables, which can also serve as a reference for workers to check if their compensation aligns with market rates and, if not, provide evidence.
