In Switzerland, salary differences between men and women are continually decreasing. But they still exist. Asking for a salary discussion can help to further reduce salary differences. But when is the best moment to pitch for a higher salary, and what should you keep in mind during salary negotiations?
Equal pay means that all people with the same abilities earn the same amount for the same work. According to the The link will open in a new window Gender Equality Act (Art. 3), employees must not be disadvantaged either directly or indirectly due to their gender, and this includes references to their marital status, family situation or pregnancy. It also applies to remuneration.
Factors like gender or, for example, social background or nationality, must not have any impact on determining the salary. However, other factors – such as individual, relevant experience, the number of years in a company, performance or potential – can justify differences in salary.
Figures from the Swiss Earnings Structure Survey (LSE) carried out by the Swiss Federal Statistical Office every two years in private and public companies and administrations in Switzerland show that although the gender pay gap (median) between women and men in the global economy continues to narrow, equal pay still has not been achieved. In 2022, the pay gap was 9.5 percent compared to 10.8 percent in 2020 and 11.5 percent in 2018. It is also interesting that the higher the hierarchy level, the greater the difference in salary. For example, in 2022, women in jobs with a high level of responsibility earned 14.7 percent less than men in the same positions. In posts with no management role, the pay gap in 2022 was less to the detriment of women at 5.7 percent.
Equal pay is central to achieving equality in the workplace. But how can companies avoid differences in salary? Three measures are especially important:
Companies should regularly check and analyse their salary structures to identify and correct inexplicable salary differences between men and women.
It is important to raise awareness among managers about the significance and necessity of tackling salary discrimination. These role models are key to disseminating information within the organisation.
This is also known as unconscious bias training, and its aim is to educate people about the automatic and often unconscious ways of thinking that can influence decisions and actions. This training is especially important for shaping salary structures in companies more fairly.
PostFinance carries out regular equal pay analyses. There are differences between the average salaries of men and women at PostFinance but these relate primarily to differences in the activities carried out. The salary difference that cannot be explained by these differences is significantly smaller, currently lying at 3.1 percent to the detriment of women and within the bounds of statistical tolerance. This puts PostFinance above the average for the sector.
PostFinance measures the salary differences annually, and the measurements are checked every two years by an independent external body.
PostFinance actively raises awareness among its team leaders. Care is taken that discriminatory salary differences do not even arise, especially during internal and external recruitment processes and in the course of annual pay negotiations. With salary transparency in job advertisements, we have also found a way to ensure clear preconditions for salaries during the recruitment process. In the future, we will use an analysis tool to check each and every salary decision for inequalities.
Equal pay is central to the achievement of equality in the workplace. Employees themselves can also contribute to more equal pay – for example by asking for fair salaries if they notice that they are underpaid compared to colleagues with the same abilities who do the same work. But which salaries are included and how is it best to proceed? Good preparation and a clear idea of your expected salary can be beneficial.
Andjelina Parlic, People Attraction Manager at PostFinance, manages recruitment processes at various levels and in a range of sectors.
When you know and can clearly express which abilities and experience you possess that create added value for the team and the company, you come across as more confident and it is easier to work out your expected salary. This is why, before any discussion about pay, you should prepare by reflecting on how you contribute to the success of your team. You might compare yourself to colleagues or superiors, or ask members of your team for feedback by asking ‘Hey, what do I do well?’ Soft skills like stakeholder management (working with different stakeholders) or adaptability (the ability to settle into a new environment and adapt your way of working) are increasingly in demand. Technical abilities and digital skills are especially important these days. If you want a bigger salary, you should be able to show clearly which additional projects and responsibilities you have undertaken since your last pay increase or since you were appointed. The best way to highlight your “value-added services” is to give specific examples.
How much (more) money can I ask for? It is worthwhile having a number in mind and mentioning this during your pay discussion. This helps give your leader some initial orientation. But it is no guarantee. Salary calculators can give an initial indication of average salaries for employees with the same activities and qualifications. It can also be especially helpful to ask around in your own network and find out how much your colleagues who work in similar jobs earn, also taking into account any possible regional or sector-related differences. This gives you a reference value to mention in the pay discussion and gives your leader some orientation.
In a pay discussion, you should also try to see the other side. Is there actually any chance of climbing a rung higher in terms of salary, and in what range could a salary increase lie? As an employee, you should remain open and show a willingness to compromise. Salary measures are assessed at company level. A person is not only compared with others in their team, but also with others throughout the company, and is paid a correspondingly appropriate salary. Instead of asking for a bigger salary, perhaps it is better to ask how you can further develop your skills so you can ask for more money in future.
Periodic employee appraisals are an especially suitable opportunity for pay negotiations. However, you can express a justified desire for a better salary at any time (for example, because compared to before, you have taken on or are being asked to take on additional projects, more responsibility or a new role without any change to your salary). It is best to ask your leader for a discussion by e-mail and indicate in the invitation that you would like to talk about your salary. This means your leader can prepare accordingly. Simply cornering your boss and demanding a higher salary is not a good idea. At PostFinance, we check our employees’ salaries at regular intervals to ensure that everyone is paid fairly and there are no unjustifiable pay inequalities. This means we avoid the situation where only those who ask for a salary increase actually get one.
After the discussion, your boss usually needs a little time to check with internal specialists whether your request for a salary increase is justified and what offer can be made. When setting salaries, PostFinance looks at internal and external benchmarks so as to offer fair and competitive salaries in line with the market. At PostFinance, salary adjustments can generally be implemented once per year as part of the performance review. If you transfer internally to a new function, your salary will be thoroughly checked and adjusted.
