Despite several efforts, gender pay gap still persists. We can see that women working the same position as men are paid 84 cents for $1 paycheck. While the gap remains for almost two-thirds of white women, it is even more unbalanced among Black and Hispanic women, whose earnings would be approximately 69 cents and 57 cents respectively for every dollar earned by white, non-Hispanic male.
HR professionals strive hard to address these inequalities. For this, over 75% of them do regular evaluation of pay checks, as per a December survey conducted by the Society for Human Resource Management (SHRM). However, audits only as a solution might be rather inappropriate. Real changes may take root in a need for the active participation and involvement of the top management.
It’s not as rosy as it seems
According to the SHRM’s survey, although 90% is educated on making business pay decisions, only 48% are trained on documenting pay decisions and understand the importance of pay equity. In fact, as you go up the ladder, only 40 percent and 36 percent of senior management have have received similar training. This gap in training highlights a critical area for improvement.
Emily Dickens, SHRM’s chief of staff and head of government affairs and corporate secretary, emphasized that equipping managers and senior leaders with the same pay equity training as HR professionals is crucial. This collaborative approach can help close the pay equity gaps identified within organizations.
Change the strategy
One effective strategy is to conduct pay audits with every new hire, as suggested by Dickens. This proactive measure can reveal if a new employee’s salary might unintentionally create pay disparities among existing employees. If such disparities are identified, HR, senior leaders, and managers should work together to address them. “I’m on our executive team, but I’m also a people manager,” Dickens told HR Brew. “Every time I hire a new person in one of my divisions, I do a pay audit and spend time with HR reviewing the broader compensation landscape.”
In some cases, the solution may involve an immediate salary increase for affected employees. However, if budget constraints prevent this, a smaller interim pay adjustment could be considered. Transparency is key; if immediate adjustments aren’t possible, HR should inform employees about the issue and outline the steps being taken to resolve it.
Addressing the gender pay gap requires ongoing vigilance and commitment from all levels of an organization. By integrating regular audits with proactive leadership training and transparent communication, companies can make meaningful progress towards pay equity.
