Equal pay isn’t quite the same as the gender pay gap – equal pay is literally paying men and women doing the same job equal amounts of money.
A gender pay gap exists when more men are in higher paying, top jobs than women. Therefore, it’s possible that an organization could have a gender pay gap if more men are in the senior roles, even though men and women are being paid the same when doing similar jobs.
The gender pay gap in the US has barely moved in the past 20 years, according to new Pew Research Center analysis.
In 2002, women earned an average of 80% of what men earned; in 2022, that figure was 82%.
The main reasons for the gap are women being treated differently from men in the workplace, and women taking on more childcare responsibilities.
When gender inequality in the workplace is in the limelight, the gender pay gap is an equally relevant topic. It is the effect of many dynamics. As a result, different groups of women experiences pay gaps due to myriad reasons.
A few things such as racial bias, experiences, age, disability, maternity, other career breaks, and education levels come into play.
The gender pay gap has the most apparent impact on employee trust and morale. It involves the attitude and perception towards the job, work environment, team members, managers, and organization.
Making pay more equal also has a more immediate effect in employee engagement and productivity. Pay is, of course, not entirely reflective of appreciation, but it does play a part; if women do not feel they are being paid as much as their male counterparts, it follows that their engagement will go down.
Closing the gender pay gap benefits both employees and employers in helping to recruit and retain the best talent. It also creates a positive work environment, garners the confidence and trust of employees, makes the best use of human resources, increases productivity and competitiveness and creates a more positive public image for the company.
When women are compensated equally and recognized for the work they do, everyone stands to gain.