You may not have heard of Equal Pay Day, as it is not necessarily a cause for celebration. This day represents how far into the year woman must work to earn the same as men earned the previous year. Which means that, in 2019, women must work an extra 3 months for the same salary. The gap widens even further when you factor in ethnicity, age, and disabilities.
52% of men surveyed believe that workplaces are equal, and women have just as many opportunities as them. Yet women, on average, make 74% of what men do. And while the gender pay gap has decreased slightly, a recent Glassdoor study says that it won’t disappear entirely until 2070.
With data like that, it is hard to deny the gender pay gap is real. So, what can we do about it?
Fortunately, there are lots of steps we can take to combat inequality in the workplace. Here are 8 steps every company can take to close the gender pay gap.
Mind the gap – become aware of it
Before change can happen, there needs to be an increase in awareness. It’s very hard to notice all the ways the gender pay gap impacts employees if you are not the one being affected. Understand that, for the most part, the working world was created by men, for men.
However, since this is no longer the case, the workplace needs to be an equal environment on all fronts. The amazing part is that companies see a 53% return on equity, 42% return on sales, and 66% return on invested capital when this happens.
Stop asking what people currently make
During the interview process it has become commonplace to ask how much a prospective candidate currently makes. Many companies then offer an X% increase based on that answer. Unfortunately, this method just enforces the gender pay gap.
Instead, use market salary and internal pay data to make sure all employees are paid equally. The same data can also be used during performance reviews to bring current employees up to the same level as each other.
Diversify your interviewers
Companies understand that they need to hire a diverse workforce, but understanding simply isn’t enough. In order for change to happen, you need to actually diversify the people doing the interviews.
Ensuring interviewers are diverse reduces the tendency to hire the same kinds of people over and over again. It also minimises the chances of unconscious bias coming in to play. Always remember cultural fit is about shared values, not about being visually similar.
Transparency in pay
A woman will never be able to ask for an equitable pay raise if she has no idea what her male counterparts are earning. When pay is treated as a closely guarded secret, woman are the ones to suffer the most.
By publishing the wage ranges for all levels of roles, you are equalling the playing field. Transparency is proven to shrink the gender pay gap.
Conduct pay equality audits
One simple way companies can remedy the gender pay gap is to conduct pay equity audits. Look for the discrepancies between pay rates and make sure that all employees with equal experience and in similar roles are paid the same as their counterparts – no matter an employee’s gender or race.
If you are a manager with a voice in pay and raise decisions, look at your team and ask “Who is doing equivalent work, and are they being paid equally?” Coworkers at the same level should be compensated fairly compared to each other.
Invest in female leadership potential
Start ensuring that high achieving women in your workplace are recognised equitably in your succession planning. Have active, ongoing conversations about advancement, and set career goals during quarterly reviews. Encourage women to pursue opportunities at every level of the corporate ladder.
When companies achieve better female representation at the top, something interesting happens – the gender pay gap shrinks. Better balance in the boardroom may explain for the smaller pay gap.
Make diversity part of your core values
Core values matter, and they have power to transform how your company treats its employees. They might just be words, but those words have power when they are repeated daily. The repetition helps to normalise them.
Your core values should always support diversity and closing the gender pay gap. In fact, they will ensure you are viewed as an inclusive forward-thinking company, and help you attract smart, highly-qualified candidates.
Closing the gender pay gap
Companies need to consider their current practises and question their decision-making process when it comes to pay. Small tweaks make consistently can affect big change across the board. Only then can they begin to close the gender pay gap permanently.
Looking to close the gender pay gap and empower women in your workplace? Work with us today!
It has never been easier to create gender diversity and empower women when hiring for your open roles than with the help of Energy Resourcing’s recruitment services.
We partner with our clients to scope the requirements of their roles to determine core skills and qualifications that are needed. We have experienced recruiters and a strong reputation within the industries we hire for.
If you are looking to quickly fill open roles with qualified candidates, connect with one of us today! Let’s work together to make your company the success it should be.