As of 2022, women earned 82 cents for every dollar a man made. The gap was more significant when isolating the data for women of color. At this pace, The Institute for Women’s Policy Research predicts we will not see gender pay equity until 2059.
Corporate leaders play an essential role in creating policies and practices that support compensation equity.
What can leaders do to alleviate pay disparity?
1. Offer alternative schedules.
Women traditionally bear more of the burden for child and elder care. As a result, they may be limited in the ability to work specific hours or to work overtime. Offer flexible schedules to reduce barriers for women to contribute.
2. Reveal salary data.
Studies show that prior salary history is one of many markers that hold women back. Remove this requirement from applications and share compensation ranges in job postings to remove some of the bias.
3. Increase the number of women in leadership.
Women need to be included in leadership ranks. The Women Business Collaborative reports that only 8.8% of Fortune 500 CEOs are women. Create leadership paths to help women advance with mentorship and guidance.
4. Support parental leave.
Women are negatively affected by taking time off from work to care for children and are less likely to return than their male peers. Design parental policies that support both parents. Create return-to-work plans that allow time to adjust back to the workplace.
What worked in the past will not get us to the future in narrowing the gender pay gap. A change requires creative workplace solutions and buy-in at the senior level of the organization. HR leaders are in a unique position to share internal data with key stakeholders to build the case for pay equity change.