According to Visier’s report, The State of Pay Equity in 2023, the amount that women earn per dollar earned by men decreased from the previous year. The decline from $0.85 to $0.84 puts at risk the Equal Pay International Coalition’s goal of having gender wage parity by 2030.
The gender wage gap might exist in organizations due to unconscious biases or misunderstandings in the compensation process. Other reasons include male employees negotiating higher salaries with new jobs or higher salary increases during performance reviews than female employees.
The gender wage gap can increase when the starting pay is based on a new hire’s previous salary. Therefore, if female new hires start jobs being paid less than male new hires, they are likely to begin subsequent jobs at lower salaries. Also, if raises are based on a set annual percentage increase, female employees’ pay will remain lower over time.
Discover why closing the gender wage gap in your organization is important and how this can be accomplished.
Importance of Closing the Gender Wage Gap
Employees who are paid fairly are more committed to the organization than employees who are not paid fairly. These employees are likely to put in additional effort and help their colleagues and coworkers when needed. This commitment leads to increased performance and value for the company.
Employees who perform the same or similar work and make equal contributions should be paid the same. Therefore, employees who are not paid fairly often find jobs with companies that offer fair pay. The results include poor employer reviews, difficulty attracting and retaining talent, and increased hiring, onboarding, and training costs.
Steps to Close the Gender Wage Gap
- Conduct a pay audit. Analyze compensation by gender to identify and address wage gaps. Also, clarify how your organization determines compensation so employees understand the factors that impact their pay.
- Ensure your hiring process and promotions are fair. Audit your employee reviews and promotions to ensure your organization is not systematically rating male employees higher and promoting them more quickly than female employees. Also, train managers to minimize unconscious biases when making hiring and promotion decisions. Additionally, use clear, consistent criteria for hiring and performance reviews.
- Provide equal opportunities for advancement. Ensure female employees receive as much constructive feedback, high-profile assignments, and access to mentorship and sponsorship as male employees. Also, make sure female employees have equal access to the people and opportunities for career acceleration.
- Normalize negotiations with female employees. Encourage female employees to advocate for themselves and each other. These actions support career advancement and pay equality.
Do You Need Help to Close the Gender Wage Gap?
Partner with Corps Team to help close the gender wage gap in your organization. Contact us to get started today.
