open search
close
Internationales Arbeitsrecht Neueste Beiträge

Attacking the gender pay gap in your workplace: a view from the US

Print Friendly, PDF & Email
Pay equity analysis and a robust assessment of what causes disparities are key tools in the fight to tackle the gender pay gap in the workplace.

Equal Pay Day marks the point when the average woman’s current earnings, combined with what she earned in the previous year, equals what the average man was paid last year. This year, equal pay day came early, on 15 MSalaryarch, because the gender wage gap in the US narrowed by 1% Now, women generally earn, on average, 83 cents to every dollar earned by the average male. Importantly, we have not yet reached equal pay day for Black, Native American, Latina, and certain subpopulations of Asian women.

The ‘wage gap’ is not just about wages; in fact, wages are only one piece of this complex puzzle. The greatest tool for attacking the wage gap in any workplace is a robust pay equity analysis coupled with a root cause assessment. The analysis identifies the gaps, but the root cause assessment identifies the driver and the solution.

Getting to the root cause of a pay gap involves:

  • organising an interdisciplinary team that includes representatives from compensation, total rewards, diversity and inclusion, talent acquisition, performance management, training and development, and in-house and outside legal counsel;
  • establishing legal privilege over the assessment to protect it from disclosure;
  • looking for patterns.

Looking for patterns can involve some or all of the steps and approaches described below.

Identify whether the pay gaps are isolated to a particular department, level, or job category such that the disparity may stem from a particular manager or decision-maker.

Determine if the pay differential stems from a disparity in base pay or an add-on, such as the annual bonus or long-term incentives.

Review starting pay for the impacted group in comparison to their counterparts. Is your company still asking applicants for their salary history? Is there a negotiation process? What factors are taken into account when determining starting pay?

If the disparity stems from the annual bonus or stock award, consider how those decisions are made. Are there guidelines in place and, if so, have they been followed?

Many companies say they ‘pay for performance’. Confirm that your pay equity analysis shows a correlation between pay and performance ratings. Also, are there checks in place to minimise biased performance ratings? If there is not a correlation between pay and performance ratings, what are your actual drivers of pay?

Consider representation by gender and race/ethnicity in your workforce. For example, are female employees, including women of colour, concentrated in lower-level positions? Are they being promoted at a slower pace than their comparators? If the answer to any of these questions is ‘yes’, you may have a glass ceiling problem.

Is attrition among the impacted employees greater than expected, either throughout the company or concentrated in certain areas? Review internal complaints for patterns such as allegations of a hostile work environment or lack of opportunities for training or advancement.

Rarely is the solution to a pay equity issue easy. However, there are tremendous benefits to be gained by getting pay equity right: lower attrition, improved employee performance, enhanced morale, positive public image, material cost savings, and significantly less legal exposure.

This article was written by our colleagues from Ford Harrison LLP, the US Ius Laboris lawfirm.

Ius Laboris




Ius Laboris is a leading international employment law practice combining the world’s leading employment, labour and pension firms. Our role lies in sharing insights and helping clients to navigate the world of labour and employment law successfully.
Verwandte Beiträge
Compliance Datenschutz ESG Neueste Beiträge Unternehmensführung

Diversity Monitoring: In Deutschland (noch) problematisch

Viele Unternehmen haben sich mittlerweile die Förderung einer diversen Belegschaft zum Ziel gegeben. Hierfür könnte ein Diversity Monitoring ein erster sinnvoller Schritt sein. Bislang stößt eine derartige Abfrage von Diversity-Faktoren auf rechtliche Bedenken. Doch das könnte sich demnächst aufgrund europarechtlicher Vorgaben ändern. Bedeutung von Diversity Monitoring in Deutschland Das Diversity Monitoring, d.h. die gezielte Sammlung von Informationen über Diversity-Eigenschaften der Belegschaft (wie Migrationshintergrund, Religion, Behinderung,…
ESG Individualarbeitsrecht Neueste Beiträge

(m/w/d) – Wie Arbeitgeber:innen sicher durch die Geschlechtervielfalt navigieren

Die Belegschaft in Unternehmen wird diverser, und damit ergeben sich für Arbeitgeber:innen täglich neue Herausforderungen: Welcher Name kommt ins Arbeitszeugnis, wenn der/die transgeschlechtliche Mitarbeiter:in mit einem anderen Vornamen angesprochen werden möchte? Müssen wir Toiletten für das dritte Geschlecht zur Verfügung stellen? Welche Dienstkleidung erhalten queere Mitarbeiter:innen? Wir geben Antworten auf die drängendsten Fragen. Ob trans-, intergeschlechtlich, non-binär oder auf andere Weise queer – die heutigen…
Internationales Arbeitsrecht Neueste Beiträge

Improving the boardroom gender balance: new rules in the Netherlands

A new legal amendment approved by the Dutch Senate will enforce more balanced ratios of men and women in the top ranks of large companies and introduce reporting requirements on whether this is achieved. The Dutch Senate has approved an amendment to the law enforcing a more balanced ratio of men and women in the top ranks of large companies. A bill introduced by caretaker…
Abonnieren Sie den KLIEMT-Newsletter.
Jetzt anmelden und informiert bleiben.

Die Abmeldung ist jederzeit möglich.

Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert