March is a month to reflect and celebrate the talent, treasure, innovations and contributions women have made. Not only do we get the whole month of March (woohoo!), we get a day, March 8th, to join the world in celebrating women and all that they do. What really grinds my gears is watching the recognition of women’s contributions continue to grow – more swag, more fan fare, more hashtags – yet, the road to parity for women remains painfully long. Not only does it feel long, it actually is long – and is getting longer, at the pace we are moving. In the U.S., gender parity on issues like health, education, leadership and economics fell 2.1 percent in the last year, according to the World Economic Forum’s Global Gender Gap Report.
Between the gloomy statistics, there is more data showing where, how and why parity can advance. For example, on March 12 we marked Equal Pay Day (no, we do not celebrate women being paid less than men) which recognizes how much less women are paid than men. In the pursuit of workplace equity, the issue of equal pay stands as a defining battleground. Despite strides in awareness, achieving pay parity remains an elusive goal for many. However, amidst this challenge, hope emerges as businesses increasingly recognize the imperative of investing in equal pay and gender equity.
The reality is, the gender pay gap persists across industries and professions. Women, particularly women of color, continue to earn less than men. This glaring disparity not only undermines individual economic security, but also hampers organizational performance and societal progress. This year’s Equal Pay Day research shows that women make just 78 cents for every dollar men make. This wage gap adds up to nearly $11,500 for a typical woman worker in the course of a year, costing all women more than $1.6 trillion in pay each year. Two-thirds of working mothers in the U.S. are the leaders of their families and breadwinners for their households – the economic and financial impact over the year and their lifetime has a deep impact. Based on this wage gap, women, regardless of their race or ethnicity, would lose $399,600 over the course of a 40-year career. Factoring in race and ethnicity, many women lose near or over $1 million throughout their career.
To combat the entrenched nature of the pay gap, policymakers and business leaders must step up. Businesses are increasingly recognizing the compelling business case for equal pay and its ripple effect. Research findings reveal that organizations that prioritize pay equity experience higher employee satisfaction, increased productivity, and enhanced brand reputation. Moreover, companies committed to fairness and inclusion are better positioned to attract and retain top talent, driving innovation and competitiveness in the marketplace.
Central to the journey towards equal pay is the pivotal role of leadership. Research underscores the importance of executive commitment and accountability in driving meaningful change. By fostering a culture of transparency, accountability, and diversity, leaders can inspire collective action and mobilize resources towards achieving pay parity. Through their advocacy and example, they can catalyze systemic shifts that extend far beyond their organizations. Along with leadership and accountability, additional strategies are essential in these efforts:
- Leadership Accountability: Leadership commitment is essential in driving meaningful change. By holding leaders accountable for promoting equal pay and gender equity, organizations can signal a top-down commitment to fostering inclusive cultures. Making sure leaders down the chain of command, managers and hiring managers, are kept up to date on best practices, education training and policy changes.
- In practice: Not only has PayPal’s executive team been touting the importance of pay equity for nearly a decade, PayPal uses their yearly Global Impact Report as a fixed yearly reporting opportunity to highlight their progress, which is audited multiple times a year, and also voluntarily publicly releasing their U.S. EEO-1 reports.
- Transparent Pay Practices: Establishing clear and transparent salary structures can help mitigate biases and ensure that compensation is based on merit and job responsibilities rather than gender or other demographic factors.
- In practice: Recently, Airbnb announced important updates in pay transparency associated with total compensation to further their workplace equity and inclusion principles.
- Pay Audits and Analysis: Regularly conducting pay audits and analyses can help organizations identify and address disparities in compensation, allowing for targeted interventions to achieve greater equity.
- In practice: L’Oreal has long worked with a partner, the EDGE Certified Foundation, to help them be a global leader in pay equity across gender, race, ethnicity, age, ability and LGBTQ identity.
Businesses continue to learn year after year – the transparency on how they change their policies shows that the on-going evaluation of what’s driving progress is essential. Studies have shown that pay data collection is an important tool to help enforce equal pay laws and close the gender wage gap. Tools like the newly released EEOC pay data dashboard “allows industries, employers, and individuals to assess generally how their pay by sex and race compares to others in their industry, job category, or state.” Coupling pay equity investments at the business level with policy actions such as reinstating the EEO-1 pay data collection will continue to shed greater light onto pay disparities and practices – driving an even greater impact on women and families everywhere. Regular assessments, coupled with ongoing dialogue and engagement, are essential for identifying gaps, addressing challenges and sustaining momentum towards lasting change.
In the pursuit of workplace and gender equity, equal pay stands as a fundamental pillar. Between TikTok and public policy – we are making progress to make sure harmful salary secrecy is a thing of the past. By investing in equal pay and gender equity, businesses not only uphold principles of fairness and justice, but also unlock the full potential of their workforce and drive sustainable growth. At a time when there are loud (and well-funded) voices working to misrepresent equity as discrimination, businesses need to stay rooted in what has long been studied and reinforced – equity is not only good for everyone, it’s also good for their bottom lines.
