The pay gap for women isn't getting any better. In fact, for women under 40, the pay gap has increased by 17 percent. Overall, women under 40 earn $0.79 on the dollar. This figure is down from $0.82 in 2016. So what do companies need to do to remedy the gender pay gap? Read on to find out.
Although women are actually outperforming men in many sectors, their pay isn't reflecting this. In fact, according to statistics, women under 40 years of age are 21 percent more likely to achieve top performer status over men, who are only at 12 percent. Women are obviously working harder than ever, and it's time for their pay to match their performance. Not only is their pay less, but they are often skipped over for promotions in favor of men. This changes once a woman reaches her 40s, however, with more promotions given to women than men.
When it comes to management positions, men are still at the top. In 2017, women held 12 percent of management positions while men held 18 percent. Managers, on average, earn twice the salary of non-managers, making this situation a contributing factor to the gender pay gap in the United States.
What Can Companies Do?
In order for companies to retain the best female talent, they need to work on decreasing the gender pay gap and promoting gender equity in the workplace. Here are five steps companies can start taking right now to achieve this.
1. Comparison Pay
Known as compa-ratio, this calculation indicates whether an employee's base pay is comparable to what they should be making. When a woman is making less than what the compa-ratio illustrates, companies should address this disparity by increasing base pay.
2. Understand the Factors Related to Gender Equity
Organizations should be well versed in gender equity throughout their institution. To reach this level of awareness, companies can use metrics like a "female ratio," which looks at the total headcount of women in various roles and locations and then adjust accordingly.
3. Use Gender to Measure Performance Ratings
Once this is done, companies need to compare the results to promotion rates and analyze areas of bias.
4. Use Gender to Measure Promotions
Companies should make an effort to examine female data by department, location, and role to discover what percentage of women are in management positions and being promoted compared to men. If there is a disparity, companies can depend upon the Rooney Rule. It states that for every open manager position that needs to be filled, there should be at least one woman and one underrepresented minority in the candidate pool.
5. Correct Gender Inequality in Your Workplace
This begins with the hiring process. One tip is to conduct blind resume reviews where the gender of the applicant is hidden. From here, take the time to improve the salary of women and create an overall balance of gender equality that includes not only pay but positions of importance by promoting more women.
ICS works hard to instill a diverse group of candidates for our clients. Are you letting your hiring process get away from you? If so, contact us to see how we can help.