We can all agree that gender pay gap has existed since women entered the workforce and that it affects women in every occupation and industry.
Reporting has revealed that 3/4 British public entities and companies pay their male employees more than females, despite the fact that females outpace males in education (about 60% of college graduates are female). [UniversitiesUK]
However, things are starting to take a turn and companies are really paying attention to the problems that stem from a gender pay gap and are working hard on closing it.
How it’s affecting companies:
- Legal action and embarrassing PR: businesses can face hefty lawsuits for underpaying employees due to their gender, and even if firms do avoid having to make a pay out, the negative PR is enough to ruin a firm’s reputation and dissuade future potential employees.
- Attracting and retaining top talent: fighting to close the gender pay gap shows that the company cares for its employees. It also affects the company reputation and helps potential customers form a favorable view of the business. Remember, good people want to work for good companies.
- Helps strengthen the entire economy: Females account for 83% of consumer spending. Improving wages for women helps grow the entire economy through a positive multiplier effect.
How to close the gender pay gap:
- Pay what’s due: immediately compensate any employee that was underpaid.
- Get females in the C-Suite: get women employees in senior positions keeping in mind that it will take long term planning to fully achieve gender balance at management and executive levels.
- Train the next generation of managers: create an internal management training program and give your current female employees a direct path to the next career level. You can also pair recent graduates with experienced mentors and have them shares advice and perspectives.
- Offer fair salaries: don’t use candidates past salary to determine what they should be offered.
- Let parents work from home: running a childcare facility can’t be afforded by all businesses which is why flexible, part-time work has been offered to cater to parents.
- Enforce paternity leave: it’s a two-way street, when dads step in to cover the childcare, mums can return to work, work more hours and earn more money. It also ensures workplace flexibility is an important issue for men too.
- Use your data: use your company data and history to diagnose what’s broken and analyse it to come up with a solution.
Closing your internal pay gap will take a lot of planning and patience. Be sure your company doesn’t lose sight of the goal and lives up to its commitments. Don’t get mad - get even!