04 Oct Key Recommendations for Addressing the Gender Pay Gap
The gender pay gap presents a complex challenge for employers. While there are many historical, political, and cultural forces at play, these must be balanced with accurate and relevant data. Now that reliable data is becoming increasingly available, employers will be expected to take a role in closing any pay gaps that exist within their organizations.
Employers, employees, HR professionals, and consultants alike should do what is possible to recognize, analyze, and understand the pay gap to their best ability. This can only be done using the most factual and relevant information available, with the understanding that some data is always better than no data, and more data is always better than less data. In addition to the quantity of the data, the quality of the data and its source are also critically important.
Over the next few years, vastly more detailed, comprehensive, and methodologically valid sources of gender pay data will become available throughout the U.S. Human resources and compensation functions will therefore increasingly be confronted with this issue – whether they’re ready or not. Ignoring it is always the least favorable option, as the issue will continue to be a matter of focus. It is therefore recommended that employers be proactive in analyzing data surrounding gender and follow where the data leads.
An HRsoft survey reveals that just 3% of companies polled share their own gender pay data with internal employees. Moving forward, this figure will likely change. Until then, employers can work with their compensation survey vendors to properly and sensibly include gender data in survey projects. Both competitively and internally, they can then use this data to inform decision making.
Additionally, the gender pay gap is not just a compensation issue. It is also an HR/diversity issue, as well as a general management issue. It therefore demands the attention of multiple departments. To secure commitment and support among all parties involved, including executives, companies should develop a strategic directive and long-term comprehensive plan. It is also important to be realistic: if strategy and culture clash, culture always wins. And, the images and reputations of employers regarding this issue are likely to be significant factors contributing to attraction and retention.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.