The Hidden Cost of Silence: How Pay Equity Impacts Employee and Customer Experiences
Pay Equity Wake-Up Call
Imagine sitting across the table, heart racing, palms sweaty. The offer letter is in front of you, but something feels wrong. You know you could ask for more, but the words stick in your throat. Sound familiar?
That’s similar to what happened to my friend Catherine Sugarbroad. She had been in a role for years when an opportunity arose to shift into a new position. Knowing that compensation in her new role might work differently, she sought advice from a trusted colleague.
He warned her that the company might try to lower her base salary because sales compensation often relies on commissions. Armed with this insight, she went into the negotiation fully prepared.
But the outcome surprised her. Instead of lowering her salary, the company raised it. Startled by the unexpected turn, she called her friend to share the news.
He responded, “Oh, you must have been really underpaid.”
This revelation was a wake-up call. Catherine realized just how much money she had been leaving on the table for years by not asking for what she deserved. That raise wasn’t just a salary adjustment—it was a sign that she had been undervalued for far too long.
Fast forward a few years, and she was in the same position again—this time more confident and prepared. When she was offered another role, she didn’t hesitate.
She told her employer, “I know I’m underpaid, and I want you to fix it.” The result?
Another significant raise, this time by 30%. In two job transitions, her base salary increased by an astounding 70%. The lesson was clear: asking for more isn’t just about money—it’s about knowing your worth and claiming it.
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Doing CX Right® Podcast Ep 53
Actionable Lessons For Women and All Employees:
Catherine’s experience highlights the importance of understanding and advocating for your worth. It’s not just a matter of getting a higher paycheck; it’s about breaking free from the limiting beliefs that keep many people—especially women—from asking for what they deserve. Let’s break down the lessons from her story:
1. Know Your Worth
Understanding what you bring to the table is essential. Catherine’s situation is a perfect example of how being unaware of her market value led to years of under-compensation. Doing research on industry standards and reflecting on your contributions is crucial in any negotiation.
2. Ask for What You Deserve
Many people believe that their efforts will be appreciated without them needing to speak up for themselves. However, Catherine’s experience demonstrates that this is not always the case. By waiting to be offered more instead of advocating for themselves, people often miss out on opportunities for advancement. Simply having the confidence to request a higher salary led to a 70% increase for Catherine over two positions. If she had not spoken up, she would have continued to earn far less than she was truly worth.
3. Prepare for Every Scenario
Even though Catherine expected her base salary to be reduced in exchange for higher commissions, she was ready for whatever came her way. Her preparation gave her the confidence to negotiate effectively. Regardless of the outcome, being well-prepared is essential.
4. Don’t Assume You’re Being Paid Fairly
Catherine’s experience shows that even when you think you’re being paid well, there might be significant gaps in your compensation. It’s vital to regularly check salary benchmarks and understand the going rate for your role in the market.
5. It’s Never Too Late to Correct the Course
A key takeaway from Catherine’s story is that there is invariably time to advocate for yourself. Even after years of being underpaid, she was able to negotiate significant raises. Don’t let past experiences of under-compensation hold you back—there’s often an opportunity to correct course.
6. Speak Up, Especially for Others
Catherine didn’t stop advocating for herself. When she noticed that men were more likely to negotiate higher starting salaries while women remained silent, she took action. Alongside her leadership team, she adjusted the wages of female engineers to match their male counterparts. This proactive approach ensured pay equity within her team, showing that asking for more doesn’t just benefit you—it can pave the way for others as well.
Actionable Insights for Company Leaders
Catherine’s story offers critical insights for leaders who want to create a fair and empowering workplace. Pay equity isn’t just about keeping employees happy—it’s about creating a culture of fairness and trust that drives long-term business success. Here’s what leaders can do to foster a more equitable environment:
1. Conduct Regular Pay Equity Audits
Manage regular pay audits to ensure that all employees are being compensated fairly. Waiting for employees to bring up pay concerns can erode trust. Proactively identifying and addressing pay gaps sends a clear message that your organization values fairness.
2. Encourage Open Conversations About Compensation
Make compensation a regular part of career development discussions. Employees need to feel comfortable bringing up salary questions without fear of backlash. Leaders must create a safe space where these conversations are not only welcome but encouraged.
3. Provide Negotiation Training
Offer negotiation training, especially to employees from underrepresented groups, can help close pay gaps. Many employees, particularly women, may not feel confident negotiating, but with the right tools and support, they can learn how to ask for what they deserve.
4. Tie Compensation to Performance and Customer Satisfaction
Link compensation to performance metrics. By doing so, leaders can ensure that employees feel motivated and rewarded for their contributions (though make sure no one is gaming the system). When employees feel valued, their engagement and performance improve, benefiting both the company and its customers.
5. Mentor and Advocate for Underrepresented Groups
Catherine’s proactive approach to adjusting pay for women engineers is a great example of how leaders can advocate for those who may not naturally ask for more. Creating mentorship programs and actively supporting employees from underrepresented groups can ensure that pay equity is built into the culture of your organization.
The Ripple Effect of Pay Equity on Customer Experience
Catherine’s story is not just about salaries; it’s about how fair compensation affects both employee and customer experience. When employees feel valued and fairly compensated, they are more engaged, motivated, and connected to the company’s mission. This engagement has a direct impact on the way they interact with customers.
An undervalued workforce can lead to disengaged employees, which results in poor customer interactions. On the flip side, employees who feel appreciated and well-compensated are more likely to go above and beyond, resulting in higher customer satisfaction and loyalty.
By prioritizing pay equity, leaders can create a ripple effect that not only improves employee morale but also enhances the overall customer experience. It’s a win-win for everyone involved.
What is International Equal Pay Day?
Observed on September 18, International Equal Pay Day is a United Nations initiative that highlights the ongoing gender pay gap and the global efforts to close it. It serves as a reminder that pay equity isn’t just about fairness—it’s about fostering more inclusive, innovative, and successful workplaces.
The gender pay gap persists in many industries worldwide, and while progress has been made, there is still work to be done. International Equal Pay Day calls on businesses, governments, and individuals to take concrete actions to ensure that all employees, regardless of gender, are paid fairly for their work. It’s a day to reflect on the importance of equal pay and the long-term benefits it brings to both employees and organizations.
For companies, addressing pay equity is not just a moral obligation—it’s a strategic business move. Fair compensation leads to happier, more engaged employees, which in turn drives customer satisfaction and business growth.
Your Next Move: Listen to the Full Story
Whether you’re an employee looking to ask for more or a leader striving to create a fairer workplace, the lessons from Catherine’s story are clear: knowing your worth and advocating for yourself and others is crucial. Pay equity isn’t just about the numbers—it’s about creating a culture where everyone feels valued.
If you want to dive deeper into Catherine’s journey and hear more about our conversation on how pay equity shapes employee and customer experiences, listen to the full episode of my podcast, “Doing CX Right,“ where Catherine and I discuss these insights and more.
