How Can Employers Minimize the Gender Pay Gap?

When you look at the American workforce, it may seem like the country has reached gender equality. Women who want to work don’t appear to be inhibited, and they make up nearly half of the overall workforce. However, there is still significant inequality between men and women in the work world. Much of this inequality is likely due to the subtle nature of bias. Many people hold gender biases they aren’t even aware of, and these have a significant impact on pay and promotional equality for women.

Though the pay gap has narrowed over the past few decades, women still only earn $0.79 for every dollar men earn. For women of color, it’s even worse, with Black women earning $0.62 and Latina women earning $0.54 per dollar. Your employment practices insurance clients may be asking the question, “How can companies close the gender pay gap?”

Consider sharing the following suggestions to help companies takes steps toward gender pay equality.

1. Create Fair Hiring and Promotions Standards

Review the business’s hiring and promotion practices. It is helpful to establish criteria that supervisors can follow for making decisions about who to hire and promote. Train these staff in gender equality issues in the workplace. Regularly audit employee reviews and promotional decision documentation to compare the results for women versus men.

2. Audit Company Salaries

It can be easy to overlook salary differences between genders. Often, business owners aren’t even aware they exist. They may believe that they are fair and pay the same salaries to women as men. An audit is the best way to discover whether gaps exist. Where discrepancies exist, work to equalize pay and set up clear criteria for how the company sets compensation. Compensation audits should be conducted regularly to ensure businesses stay on track and close the gender pay gap.

3. Encourage Women To Negotiate

Assertive women are often viewed negatively, whereas men who do the same are seen in a positive light. Society tends to value different qualities in women than in men. If your clients want to close the gender gap, they may also need to adjust their perceptions and encourage women to negotiate salaries and promotions.

4. Create Equal Advancement Opportunities

Gender bias impacts advancement, and therefore compensation, and fewer women are promoted to high-level positions in companies. Business owners should examine where the opportunities for advancement exist within the company. Find out if women are in positions with access to those opportunities or have roles that do not have the same advancement potential. Determine whether the business provides women the chance to lead or participate in high-profile, advanced projects or assignments.

Gender equality issues are still prevalent in the workplace. When companies work to close the gender gap, the entire organization benefits. Business owners should also obtain employment practices insurance to ensure that their professionals are covered for omissions and errors committed while performing professional services.

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