Did you know that most companies in the world vary their pay for employees based on gender? A gender pay gap still exists in the 21st century. Women still earn less than men despite going through the same qualifications and experience.
Research shows that for every dollar a man earns, a woman earns 77 cents. The gap is even wider for women of color and other minority groups. Women must work three more months to earn the average pay of a man. According to Glassdoor, the gap may continue to persist until 2070.
Why does a man earn more than a woman? What factors contribute to this phenomenon, and how can it change? Read on because we’ll unravel the gender pay gap and how it affects you.
What is Gender Gap?
A gender pay gap is the difference between the average earnings between a man and a woman. The differences in pay for men and women aren’t just about equal pay. The pay gap exists due to economic and social factors that affect a woman’s ability to earn.
The differences will end if the change starts from the societal level. The best start is removing cultural barriers that prevent women from exploiting their full potential.
Why is it Important to Address the Gender Pay Gap?
The truth is, when a woman earns less than her male counterparts, even her pension contribution is lower. Is this what we want for our mothers and sisters? Definitely not!
But wait….why should a business address pay gap issues?
- Better productivity: When all genders have equal opportunities to earn, it boosts their morale and productivity.
- Brand image: You don’t want your business to be associated with unequal treatment of employees and lawsuits. You see, when employees feel discriminated against based on their gender or other factors, they can definitely retaliate by suing your company.
Other disgruntled workers will leave bad reviews about your company on online platforms. This could have a ripple effect because you won’t attract good employees. Who wants to work in a company that doesn’t care about its employees?
- Employee retention: Let’s face the facts. Women are more than capable of help a business. You don’t want to keep losing good workers for reasons such as underpaying them or discrimination. The costs of hiring a new employee are far higher than retaining the current workforce.
Frequently Asked Questions
How can we bridge the gender pay gap?
The first step to closing the gender gap involves admitting that it exists in the first place. Most men think they are offered the same opportunities as women. Employers also need to stop asking prospective employees how much they made in their previous workplace. This tendency further widens the gap because employers only make a percentage increase from the previous salary.
Lastly, employers need to adopt transparency in the waging system. One way to help ensure transparency is through pay audits. This way, the human resource department can bridge any differences between what employees earn.
What are the real reasons behind the gender pay gap?
One of the salient reasons behind the gender wage gap are inflexibility caused by childcare responsibilities on women. For instance, a gender pay gap 2020 study suggests that with the onset of the Covid-19 pandemic, most women quit work to look after children.
How does the gender pay gap affect families?
The gender wage gap means that men and women don’t have the same earning capabilities in terms of hours worked, flexibility, and pay. It places women in a lower position economically. Empowered women are better able to uplift the standards of their families.
How can Businesses Help Close Gender Wage Gaps?
On Equal Pay Day, you will see flashing slogans of “we want equal pay,” “pay men and women equally,”— the list goes on. However, most efforts to close the gap often end without any results. This is mainly because the issue of gender gaps is often addressed as an emotional issue.
Instead, it should be addressed as a requirement for all businesses worldwide. You see, women aren’t trying to seek sympathy; they deserve equal opportunities. Here are some of the ways your business can help close these gaps in the pay structure.
- Avoid unconscious biases: Many businesses tend to ask job applicants to fill in their gender details. A hiring manager using this technique may be biased toward hiring a particular gender over another. Instead, businesses should implement blind hiring where candidates don’t indicate their gender. Such a practice will give all applicants equal opportunities.
- Practice transparency: “Indicate your expected salary” is a common phrase on most job advertisements contributing to pay gaps. A transparent company should indicate the salary they want to pay for a specific role.
By doing so, they allow applicants to apply only if the pay matches their expectations. It also prevents instances where women, out of desperation, under quote the expected salary to land a job.
- Leadership matters: The leadership of any business should consist of all genders. With a management team consisting of men and women, it’s possible to maintain a hiring system that doesn’t discriminate against certain groups.
Gender pay gaps are real and may persist even in the years to come. Companies should perform pay audits and bridge the gaps. Society should also stop pressuring women to take up childcare and home duties that affect their capability to earn equal to men.
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