10 Ways to Close the Gender Pay Gap
Definition of Gender Pay Gap
The Gender Pay Gap (GPP), also called: "Gender Wage Gap", is the systematic (average) difference in wages between men and women who are working. When discussing the GPP, it's crucial to distinguish between the non-adjusted GPP and the GPP after it has been corrected for equal work, equal amount of working hours, equal education, and equal experience.
Main Causes
The main reasons for the remaining gap (when corrected for the factors mentioned), are legal, social and economic factors, including discrimination based on gender, the motherhood penalty vs. fatherhood bonus, parental leave, and gender norms.
Organizational Approaches to Closing the Gender Pay Gap
Here are some things organizations can do to diminish and ultimately close the Gender Pay Gap:
1. ENSURING FAIR PAY STRUCTURES: Discuss how closing the GPP is a critical component of maintaining fair and equitable pay structures within an organisation. Emphasise the importance of regularly reviewing and adjusting compensation systems to achieve gender pay equity.
2. LEGAL COMPLIANCE: Mention the legal and regulatory requirements related to gender pay equity, which often necessitate adjustments to an organisation's compensation practices and pay structures.
3. TRANSPARENCY IN PAY: Talk about how transparency in pay, which is a key element of many efforts to close the GPP, can lead to a better understanding of the pay structure within the organisation.
4. PAY GAP ANALYSIS: Describe the process of conducting GPP analyses as a means of identifying disparities and addressing them within the existing pay structure. This could involve examining wage discrepancies between male and female employees in similar roles.
5. PAY EQUITY INITIATIVES: Explain how organisations can implement pay equity initiatives as part of their overall compensation strategy. These initiatives may include regular pay audits, salary adjustments, and promotion of equal pay for equal work.
6. MARKET-BASED PAY: Discuss how market-based pay practices can help organisations address the GPP by ensuring that salaries are competitive and equitable compared to industry standards.
7. PERFORMANCE-BASED PAY: Highlight the importance of performance-based pay structures that reward skills, experience, and contributions rather than gender. Ensure that these structures are applied consistently to all employees.
8. BENEFITS AND PERKS: Consider how benefits and perks, which are often components of compensation, can be structured in a way that supports gender pay equity. For example, parental leave policies can impact the gender pay gap.
9. CAREER ADVANCEMENT: Discuss the role of career advancement opportunities and how they can impact the gender pay gap. Ensure that promotion and advancement processes are fair and free from bias.
10. EMPLOYEE EDUCATION: Mention the importance of educating employees about their rights and opportunities to advocate for gender pay equity. Training and awareness programs can be part of a comprehensive compensation strategy.
⇨ Feel free to add additional measures or insights to this topic in the comments.
Sources:
Simon Lythgoe, (2022) "How to Overcome the Gender Pay Gap", Volt International, 2022, March, vol, pp. 1-10
Carolina Aragao, (2023) "Gender Pay Gap in U.S. Hasn't Changed much in Two decades, Pew Research Center, 2023, pp. 1-10
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