In 2018, eight hundred and ninety businesses were asked to analyze their gender pay gap and only sixty five companies were willing to release the results (Omens,2019). Businesses contribute to the gender wage gap when they fail to negotiate equitable salaries (Abbas, 2020). This is because companies which continually distribute inequitable salaries between male and female employees (with the same job description/title) can end up with a large gender pay gap (Abbas, 2020). Businesses can also contribute to the wage gap by failing to review and adjust inequitable salaries (Abbas, 2020). Helping employers realize the role they play in promoting the wage gap may be a crucial step in creating wage equality because "...while disclosure alone cannot close the pay gap, it is an essential first step to understanding the landscape of pay equity in the U.S." (Omens,2019).
There are several reasons why employers should care about closing gender wage gaps in their company aside from appeals to morality (Abbas, 2020). Research has shown that women will leave current job positions to pursue higher salaries (Abbas, 2020). Therefore, evaluating salaries and giving pay increases can potentially help increase a company's employee retention rate and decrease turnover (Abbas, 2020). Furthermore, decreasing gender pay gaps can be a vital branding tool that boosts a company's image in the public eye (Abbas, 2020). Finally, "...businesses with women in top management positions are [statistically] more profitable. A study of 22,000 companies worldwide found that having at least 30 percent of women in the C-suite adds 6 percent to net profit margin" (Abbas, 2020).
Employers will often seek to decrease employee turnover, increase profit and boost public image. Evaluating and working to close gender pay gaps can help businesses in all three areas (Abbas, n.d.). There has been a recent shift in the workforce and employment due to the Covid-19 pandemic (Engemann,2020). Businesses attempting to move forward in a post-pandemic economy may need to attract new employees. Therefore it is important to note that, "...almost a third of workers will not apply to a company with a gender-pay discrepancy" ("Equal Pay Counts", n.d.). Therefore, employers who continue to refuse to re-evaluate gender pay gaps may deter needed applicants.
The research above has shown how businesses continually contribute to the wage gap. However, there are two key strategies that employers can use to close wage gaps within their own companies. Conducting a pay audit for all current employees will allow for businesses to assess and adjust inequitable salaries ("Equal Pay Counts", n.d.). This can help to decrease any past pay discrepancies ("Equal Pay Counts", n.d.). Finally, businesses can schedule regular audits of new hire salaries to account for pay discrepancies and properly adjust as needed ("Equal Pay Counts", n.d.). To close the wage gap, businesses will need to be made aware of the issue and potential solutions. Advocates can assist our movement this week in two distinct ways: 1. Share this article on LinkedIn. LinkedIn is a social media platform which allows for connections with employers and professional companies. Sharing this article increases the chances that employers will read about the gender pay gap and solutions that will work for their own companies. 2. Signing this petition. Our petition this week is requesting that Apple conducts a pay audit and adjusts inequitable salaries between male and female employees. Research has shown that Apple offers female employees "12,000 dollars less than men" (Salim, 2020). Apple is largely considered a household name and a leader in the tech industry. Drawing attention to pay discrepancies in this company and requesting a response may help influence other companies to follow suit. Completing both of these actions will assure progress in our movement to actively advocating for gender equality.
References
Abbas, R. (2020, July 16). Why should employers care about the gender pay gap?: Workable. Recruiting Resources: How to Recruit and Hire Better. https://resources.workable.com/stories-and-insights/gender-pay-gap.
Engemann, K. M. (2020, October 14). How the COVID-19 Pandemic Has Affected the U.S. Labor Market: St. Louis Fed. How the COVID-19 Pandemic Has Affected the U.S. Labor Market | St. Louis Fed. https://www.stlouisfed.org/open-vault/2020/october/how-covid19-pandemic-has-affected-labor-market.
Lean in . Four steps companies can take to close the gender pay gap. Lean In. https://leanin.org/what-companies-can-do-about-equal-pay.
Omens, A. (2019, April 2). Of the 890 largest US companies, only 65 have reviewed their gender pay gap and made the reports public - and that lack of transparency is holding women back. Business Insider. https://www.businessinsider.com/us-public-companies-fail-to-release-pay-equity-reports-2019-4.
Salim, S. (2020, August 8). What Gender Pay Gap Looks Like at Google, Facebook, Apple and Other Top Tech Companies. Digital Information World. https://www.digitalinformationworld.com/2020/08/what-gender-pay-gap-looks-like-at-google-facebook-apple-and-other-top-tech-companies.html#:~:text=The%20same%20salary%20is%20%24112%2C000,salary%20package%20for%20female%20workers.
Media Source
Youtube. (2019). Glassdoor: The Gender Pay Gap Breakdown . https://youtu.be/JIc63jxNI1Q.
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