As organizations continue to move the needle and bring to the forefront emerging concerns for the diverse workforce, gender equality and the pay gap – top the charts in terms of rising issues in today’s workplace.
The current average ratio of women’s earnings to men’s earnings is 80 percent, and the rate at which it is improving is uninspiring. The gender pay gap significantly narrowed after the 1970s, when women saw an increase in education and workforce presence and men saw a decline in their wage growth, but the last significant annual change in the ratio occurred ten years ago in 2007, and the current growth has stalled to tenths of a percent. According to the Institute for Women’s Policy Research (IWPR), women should not expect to see equal wages until 2059. And, this doesn’t take race into account that shows that African-American women will not have equal pay until 2124, and Hispanic women will not have it until 2248.
But beyond the gender pay gap; inequality in the workplace creates a number of other problems for companies and employees.
The gender pay gap can lead to changes in the work environment, including a decrease in satisfaction (and retention) from female employees and a discriminatory attitude in other areas that could lead to other types of discrimination claims.
It’s important for all employees to understand how your company makes its salary decisions to promote equality.
- Be transparent and judicious, not just in terms of how each employee is compensated, but also in your decision-making process when determining how employees receive raises or promotions.
- Regularly assess to make sure that there is no implicit discrimination and consistent in process execution.
- Keep regularly updated records of payment classifications and compensation patterns, and perform routine salary audits in order to ensure that the distribution of wages amongst employees is consistent and fair.
- Regularly perform a pay equity analysis to ascertain that compensation is based on objective factors.
- Perform a detailed assessment on your company’s job descriptions to provide a more objective way of determining how different positions should be compensated.
Protect your employees and your business by working the right insurance advisor to help you understand your exposures and implement best practices to educate your team on ways to mitigate your risks.
About the Author: Keti Mehta currently serves as Chief Strategy Officer with HUB International Northeast, responsible for the overall management of the firm’s new business initiatives along with recruiting high performing sales talent to further grow HUB’s regional footprint. As a leading global insurance brokerage, HUB International works with organizations on mitigating risk exposures through innovative insurance protection solutions, loss control services and expert consultation. Work with a HUB International advisor to learn more about creating a culture of equality in the workplace and protection options such as Employee Practices Liability insurance (EPLI) and other coverages.
Keti is also the Vice Chair of the Tri-State Diversity Council, where she stands out for being a culture champion, diversity sponsor, talent enthusiast and an innovative business driver providing trusted thought leadership and consultative business partnering to executive leadership. She can be reached at 212-338-2017 or [email protected]. For more information on HUB, please visit www.hubinternational.com.
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