Why Pay Equity is Critical to a Diverse Work Place Being Included and Belonging

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We are all now living with covid-19 for nearly an entire 12 months. Mandatory lockdowns are no longer a novelty, and the assumptions we might have had regarding how the global pandemic could affect women have been thoroughly pushed to the gutter. When we were initially told to work from home, our initial thought was one of hope. If now both adults, and obviously here I am implying that households with two employed adults, weren’t leaving, then certainly this will recalibrate the household work plus childcare tasks? Which we would notice a change as now each took these tasks upon themselves equally.

Was I wrong.

The covid-19 era nowhere near becoming a great equalizer has pushed women not merely out of the workforce but is additionally affecting them more significantly. As observed in the World Economic Forum’s publication Women in the Workplace 2020, at year-end of 2020, tens of millions of females were thinking of walking away from the workplace for good.

Elsewhere, a UK report found that mothers were 1.5 times more likely than fathers to have either lost their job or quit since the lockdown started. Minorities and women of color are even more negatively impacted. The report observes that “compared with females overall, Latinas are more likely to worry about layoffs and furloughs. And LGBTQ+ women are nearly 200% as likely as workers overall to claim mental wellness as one of their biggest challenges during Covid-19.”

One of the primary reasons for the harsh job loss numbers? McKinsey’s analysis found that women’s jobs are 180% more vulnerable to the pandemic than men’s. One reason for this is that so many females are employed in markets decimated by the pandemic. The hospitality sector employs more women than men.

It’s not merely in the economic area that women are suffering. Studies from the UN shows an upsurge in calls to domestic violence helplines across the planet.
Why payroll parity is more critical than ever

However, there is another issue at work here. Often the primary reason a woman is the one to relinquish her job is purely economic. Who makes more earnings? When both parties are employed, it makes sense for the person with the higher income to stay at their job and the other one to leave. There is where the issue begins since, as we all know, the level of pay inequality is overwhelming.

Observing the most current data, in 2020, females make merely $0.81 for each dollar a man made. The managed gender pay gap, that ponders metrics like job title, years of experience, vertical, and location, discovered that women earn $0.98 for every $1 a man earns. While within this controlled data, the largest gap is between the earnings of African American women and white males. As disclosed in the publication, black women make $0.97 for every dollar a white man with equal qualifications is paid.

At initial observation, this appears to suggest that the differential in earning ability is generally low when you show like with like. Yet, it’s more nuanced than that, and that is why it needs our attention. While men and women on the same experience may receive similar compensation, the problem is that there is strong evidence that men get advanced at a quicker pace than women. The higher up the ladder the higher the compensation, and there lay the challenge. That is why it’s not simply the salary that we should consider – by determining presumptive raises awarded across a 40-year employment, women will lose $900,000 on average over a career.

Research shows that when women have children it adversely affects their payroll potential. The so-named “Motherhood Penalty” leads to employed mothers being seen as less devoted to their employment and needing a more accommodating schedule. Statistics show that the pay gap is substantially higher for women with kids.
Why payroll analytics could enhance visibility about gaps in your organization

While several factors contribute to pay inequities, one of the ways to address it is by identifying where the gaps are and then searching to repress the gap. Several companies are unaware that there exists is a difference. Part of the issue is a lack of information, a lack of knowledge about existing pay scales. In a 2020 publication, we learn that over half (56%) of those studied said their organizations don’t have a formal process to fight pay equity, whilst 70% don’t use salary structures to manage payroll.

To battle this data gap, and as part of their work for customers who are located in the UK, Immedis developed a robust report that plainly shows the way an organization pays its workers based on gender and age.

From analyzing the gap, organizations can make educated actions about how to change and get payroll equity.
As well as the country by country analysis, Immedis also offer international data for Gross and Net pay.
Why it is important to study data

Apart from the point that it’s a legal mandate in the UK, there is also the existing bias we have for tangible evidence.
In closing, workers demand proof. Without data and comprehensive visualizations, it’s easy to assume that all is fine and that you are doing right by your workers. With the data, organizations can get a superior knowledge of how they are paying their employees and if there exists any obvious differences, which they can then address.