More than half a century after the Equal Pay Act of 1963 was passed into law, equal pay has not yet been achieved in American workplaces. A Glassdoor analysis found a 24.1% difference in pay for men and women in the United States. When adjusting for workers in similar roles, the difference drops to 5.4% in favor of men.
Making sure your company is paying men and women equally is important for recruiting: 3 in 5 employees say they would not apply to work at a company where a pay gap exists. But gender equality isn’t just about pay: greater gender diversity is good for business. A McKinsey study showed that gender-diverse companies are 15% more likely to earn above-average revenue.
Promoting both salary equality and gender diversity at your company requires a multi-pronged approach that addresses nearly every aspect of HR: recruiting, hiring, compensation, benefits, culture, and performance management.
Follow these 10 tips to address the gender pay gap and increase gender equality at your company:
1.) Revise your job descriptions
Certain words and phrases have the power to attract or repel certain types of people. Use an app like Textio to revise phrases in your job descriptions that might repel women.
2.) Conduct blind resume reviews
Gender bias has been proven to go both ways when reviewing resumes. To reduce gender preferences for particular roles and improve cultural diversity, eliminate names from consideration when reviewing candidates.
3.) Structure your interview process
To ensure male and female candidates are being evaluated equally, ask a consistent set of questions to each candidate.
4.) Revamp your benefits
Take a close look at your family leave policies, dependent care benefits, and consider flexible scheduling or remote work opportunities for those with caregiving responsibilities.
5.) Promote a female-friendly culture
Provide unconscious bias training for employees, and offer women’s leadership and mentorship programs. Consider offering employee resource groups or volunteer opportunities that benefit women.
6.) Conduct a gender pay gap analysis
Gather your data and enlist an analyst to take a look at your salary and bonus data by gender, department, tenure, age, education, and location.
7.) Pledge your commitment
Show candidates your commitment by taking the Equal Pay Pledge on Glassdoor. Demonstrate your commitment to equal pay by sharing the results of your study with employees and celebrating any adjustments made.
8.) Make equitable offers
Since research shows that women and older workers are less likely to negotiate, leave less room for negotiation in your offers. Evaluate pay scales at least annually to become more transparent in your approach to pay.
9.) Equalize performance reviews
Performance reviews, promotions, and bonus distributions can be affected by unconscious bias relating to behavioral traits, favoritism, and male-based definitions of success. Provide manager training and controls to ensure women and men are being evaluated fairly.
10.) Give employees a voice
Provide a confidential outlet for employees to voice their concerns relating to gender issues. Most importantly, take appropriate action to address concerns. Encourage employees to use their voice by posting reviews and salaries on Glassdoor.com to give candidates a more accurate picture of what to expect.