Every year, Equal Pay Day serves as stark reminder of the gender pay gap. Women would have to work all of last year, until today, to earn what a man earned last year alone. To put it another way, a woman would have to work for nearly 49 years to earn what a man could earn in only 40.
We’re making progress, albeit slowly. At the current rate of progress, the gender wage gap isn’t expected to close until the year 2059.
It’s high time we speed things up, and every company has a role to play. By ensuring internal pay equity, we can work together to close the gender pay gap once and for all.
This varies by:
When data is adjusted for factors like job title, years of experience, industry, and location, the controlled gender pay gap is still 98 cents. Men are offered higher salaries than women for the same job, at the same company, 63 percent of the time. And, of course, the controlled wage gap can vary. Women in executive roles earn 95 cents for every dollar a man earns. Black executive-level women earn 93 cents for every dollar White executive-level men earn. And LGBTQ+ women earn 90 cents for every dollar earned by non-LGBTQ+ men.
The pay gap widens further once stock grants are factored in. Women own just 47 cents in equity for every dollar men own. While women represent 35 percent of equity holders, they only own 23 percent of the equity.
The gender pay gap is a longstanding problem, and it will require some concerted effort to close it. Here are five areas to focus on as you get started:
The gender pay gap has persisted for far too long, and we simply cannot allow it to continue for another 38 years. Unfortunately, there’s not a simple solution. Compensation is complex, and pay equity will require an ongoing commitment to achieve and maintain it.
This is the right thing to do, for your team members—and your business. Focusing on pay equity can help improve morale, retain employees, and reduce legal risk. Consider your pay equity practice an investment in your company’s future and give it the resources it requires to create change.