How Leaders Can Help Close the Gender Gap: Pay Equality
March 14 is Equal Pay Day: a date that denotes how far the collective effort for closing the gender gap has come.
The Gender Pay Gap, according to the Canadian Women's Foundation, refers to the difference between the average earnings of men and women and still, in Canada, women earn less than men, despite having similar levels of education and experience.
WHAT MAKES THE GENDER PAY GAP TIC?
The gender pay gap depends on a few factors, such as age, education and occupation. On average, women earn 87 cents for every dollar earned by men. We recently talked about the importance of having women in leadership positions and how much that costs the global economy, and when we look at the size of the gender pay gap that still defines the workforce, that loss appears to grow.
The Canadian Women's Foundation says that some of the main contributing factors to the gender pay gap include occupational segregation, discrimination, and the undervaluing of work done by women.
Also, the Harvard Business Review says that the gap is a symptom of a deeper issue: gender inequality in the workplace. That means, as we said before, the underrepresentation of women in leadership positions, the lack of diversity in hiring and promotion practices and the perpetuation of gender stereotypes.
If we look closely at specific areas, such as tech, we can see that gap clearly: according to data from Syndio, women in the tech industry earn 81 cents for every dollar earned by men - a figure smaller than the national average of 82 cents on the dollar. That amount decreases when we talk about women of color: black women earn 74 cents on the dollar, and Latina women earn just 67 cents on the dollar in the tech industry.
SIDE NOTE: PAY EQUITY X PAY EQUALITY
Before going on, let’s define Pay Equity and Pay Equality. They may seem like the same thing at first, but actually addresses two distinguished complaints when it comes to the gender gap:
Pay Equity stands for equal pay for work with the same value. That means we look at jobs historically occupied by women (like childcare workers) and compare them to jobs traditionally done by men, like truck drivers. If both jobs have the same value, they have to be paid equally. In this scenario, only women in female jobs can make a complaint if they are not being paid fairly.
Pay Equality (or Equal Pay) stands for the salary people from different genders get by doing the same work. Two digital marketers, a man and a woman, have to be paid equally if they do the same job or do very similar tasks on a daily basis. This also depends on experience and skills, but, contrary to Pay Equity, both men and women can complain if they're being paid unfairly, in this case.
HOW CAN LEADERS ADDRESS THE GENDER PAY GAP?
The gender pay gap has serious consequences on women's lives, their families and the economy as a whole - they are more likely to live in poverty, have less access to resources and have less money to invest in their families and communities. That's why addressing inequality in the workplace is not simple and requires a multifaceted approach that starts with today's leaders. Here are a few actions companies and leaders can implement now:
PERFORM A COMPANY AUDIT
To understand how inequality and the lack of diversity affect companies, leaders need to understand the effects of that on their own work environment. Examining your own culture, values, and practices, the challenges your employees face and the difference between paychecks, bonuses and benefits your company offers is a way to achieve that, as well as benchmarking with other companies in the same area and understanding how they are acting against inequality in their own way.
REVIEW YOUR HIRING PROCESS
According to Syndio, white men make up 56% of employees in tech companies, while women of all races and men of color make up the other 44%. Those numbers show not only the problem regarding access to the knowledge people need in order to make it into tech, but also how those companies are prioritizing the same type of person for their positions. Offering opportunities and reviewing the hiring and promotion processes within companies is a way to change that scenario.
COMMIT TO SALARY TRANSPARENCY
In order to close the gap and reach pay equality, companies need to be more transparent about their pay practices and make a commitment to offering equal pay for their employees.
Buffer, a big tech company that offers a well-known social media management tool, disclosed every salary it pays online in an effort to ensure fairness. For that to work, though, the company has to not only say what it pays for each employee but also do regular audits, benchmarking against industry standards and tracking its progress over time.
HAVE CLEAR GOALS
Leaders have a key role when it comes to closing the gender gap. It's not enough to have transparency and review internal processes but also commit, on a professional and personal level, to that idea. Setting clear goals within the company, providing resources and support, and holding themselves and others accountable for progress are part of the job - after all, leaders must also be role models to promote diversity, inclusion and equity at the company.
ADJUST WHEN NECESSARY
Closing pay gaps and achieving pay equity is an ongoing process that requires regular monitoring and adjustment. This includes tracking progress over time, identifying areas that need improvement, and making changes as necessary. Being open to feedback from employees and adjusting your strategies based on that feedback is just as important, according to the Harvard Business Review.
At Ari Agency & Ari Executive, we work with digital leaders and disruptors who rely on us to find and attract some of the most competitive talent in the digital space. If you’re interested in the trends impacting workforces or looking to hiring game-changing talent, contact us today to learn more about how we can help.
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