The gender pay gap has been making headlines for decades. It was even a leading reason for the rise in certain forms of legislation, such as bans on companies asking candidates about their past salaries or factoring such details into their job offers.
However, even as pay equality garners more attention, the issue persists in many organizations. At times, the gap is a known issue. In others, it’s a problem that sits below the surface, mostly undiscovered by company leadership.
Ending the gender pay gap requires effort. It won’t close itself, so companies must look inward. That way, they can learn more about where they stand, why the gap exists or persists, and what can be done to correct the issue.
If you want to help end the gender pay gap this year, here’s what you need to know.
Understand What the Gender Pay Gap Is
In most cases, a gender pay gap refers to a salary disparity between men and women. While the base concept is simple, how it can be calculated isn’t. There are several potential approaches for tracking gender wage gap metrics, and that leads to a substantial amount of confusion.
If an organization wants to see where it stands and work toward correcting the issue (if it is present) internally, one of the fairer ways to begin is to analyze each job class independently. This allows the company to determine if those doing similar work are being paid equitably.
For example, tech employee data could be examined separately from customer service employee data. That way, organizations can determine if there is a pay disparity within departments, which may provide a more accurate overview of the situation.
Review Your Current and Legacy Personnel Data
When it comes to closing the gender pay gap, a company’s personnel data is a critical asset. Organizations need to examine multiple areas, including employee salaries, tenures, job duties, skill sets, and levels of experience.
By doing so, the company can determine if a gender pay gap exists within its walls. It allows them to explore whether all employees with shared attributes and working in positions that align with one another are receiving similar salaries.
The goal is to determine if compensation is equitable, not necessarily the same across the board. For example, a company may factor in skill-set or experience level differences that could cause one employee to be paid more than another during their analysis.
If it’s found that one gender is earning more than the other, even though their credentials and job duties are alike, then a gender pay gap exists. At that point, a correction may be in order.
Correcting the Gender Pay Gap
When a company discovers a gender pay gap in its practices, a correction may be necessary. Often, this involves raising the salaries of those who were negatively affected by the salary gap. That way, the pay rates are equitable for all parties.
If you’d like to learn more about closing wage gaps, the team at CPS Recruitment can help. Contact us today and see how our expertise can benefit you.