Equal Pay Day is a date that symbolizes how far into the year women must work to earn what men earned in the previous year. Based on data established in 2019, women are earning, on average, 82 cents for every dollar that a man is earning. Therefore, while Equal Pay Day for all women should be on December 31st, it is not. Women must work well into March of this year to earn the same amount a man earned in 2020.
In recognition of this inequity and to better support our workforce, below are some steps an employer can take to help close the pay gap:
Conduct a Gender Pay Gap Analysis – Gather available data and review compensation data based on defined demographics (such as: gender, tenure, age, education, location, etc.).
Review hiring practices – Research has shown that women and older workers are less likely to negotiate. Leaving less room to negotiate offers and discontinuing the use of salary history in hiring and compensation decisions can help reduce pay disparities.
Invest in Manager Training - Performance reviews, promotions, and bonus distributions can be affected by unconscious bias relating to behavioral traits, favoritism, and male-based definitions of success. Providing training and controls can ensure more equal evaluations.
Commit to open communication and transparency – Employees sometimes can feel left in the dark about how pay decisions are made within their workplace and about their employer’s overall pay policies. Communicating a “right to request” policy would help ensure that all employees have access to basic information about pay practices and policies within an organization.
Create opportunities for advancement – Ensuring that women are paid fairly is a start. Organizations should also be thinking about how they can provide an environment where women can thrive and lead. Having opportunities for women in leadership positions can help drive valuable policy changes and demonstrate that there is an avenue for success within the organization.
Adopt policies to support working moms – Improving wages is one functional area in improving pay equity. Going a step further, policies that support working parents help women not have to navigate or sacrifice between their work and family responsibilities.
If you have any questions or are considering implementing any of the above best practices for equity, please reach out to your HR representative or contact us.