Why should we stop the gender pay gap?

Paying women less than men has far-reaching implications for society by contributing to the gender pay gap, women's lower pension contributions and their higher incidence of relative poverty in later life.

Why is it important to close the gender pay gap?

Closing the gender pay gap will benefit women, and may also bolster business performance, strengthening the global economy (Noland, Moran, and Kotschwar, 2016). Women's lower earnings perpetuate gender inequality, decreasing their independence and bargaining power (Wodon and De le Briere, 2018).

What are the main reasons for the gender gap in pay?

Race and the Pay Gap

The gender pay gap is the result of many factors, including race and ethnicity, disability, access to education and age. As a result, different groups of women experience very different gaps in pay.

How should we close the gender pay gap?

Actions to close the gender pay gap

1. Include multiple women in shortlists for recruitment and promotions. ...
2. Use skill-based assessment tasks in recruitment. ...
3. Use structured interviews for recruitment and promotions. ...
4. Encourage salary negotiation by showing salary ranges.

What would happen if there was equal pay?

Persistent earnings inequality for working women translates into lower lifetime pay for women, less income for families, and higher rates of poverty across the United States. In each state in the country, women experience lower earnings and higher poverty rates than men.

What are benefits of equal pay?

The Benefits of Equal Pay

When businesses offer equal pay, they create a more competitive workforce that can provide their business with a wide range of benefits. Pay systems that reward employees equally for the same amount of work: Demonstrate your organization's values to employees. Increase efficiency and ...

How does gender pay gap affect workplace?

The gender wage gap affects an organization's performance, workplace culture and bottom line. Companies that close pay gaps now will pay less than those who wait to take action, as the average cost to correct gaps increases by $439,000 each year.

How does the gender pay gap affect families?

And this inequity accumulates over a lifetime into a shockingly high career wage gap. The career gap lowers women's earnings over a lifetime and reduces their long-term assets and that of their families. The typical woman loses $431,000 in pay over a 40-year career. But the gap is higher in some states than others.

How does equal pay reduce poverty?

If working women received equal pay with comparable men—men who are of the same age, have the same level of education, work the same number of hours, and have the same urban/rural status—poverty for working women would be reduced by more than 40 percent.

What are some consequences of the gender pay gap?

Consequences of the Gender Pay Gap. Lower pay makes it harder for women, especially single women, to get ahead financially. Their lower earnings make it harder for them to save money for emergencies or retirement.

Why is equal pay an issue?

Equal pay is a family issue. Women make up nearly half of the U.S. labor force and are a growing number of breadwinners in their families. More women are also working in positions and fields that have been traditionally occupied by men. When women are not paid fairly, not only do they suffer, but so do their families.

Is there a gender pay gap?

Despite that, even with a higher educational level, women earn, on average, less than men do. Although the difference between men's and women's earnings has declined in recent years, in 2016 women still received the equivalent of 76.5% of men's earnings.

Why should employees be treated equally in terms of pay?

Providing equal pay for all employees will also reduce the risks of facing an equal pay claim and help avoid: Expensive legal fees which could cost thousands of pounds. Lost productivity as management gather evidence and deal with tribunal hearings. Damaged employee relations and low staff morale.

How does pay gap affect the economy?

The economic impact of this persistent pay inequality is far-reaching: if women in the United States received equal pay with comparable men, poverty for working women would be reduced by half and the U.S. economy would have added $512.6 billion in wage and salary income (equivalent to 2.8 percent of 2016 GDP) to its ...

Is pay important to employees?

Properly compensating employees shows you value them as workers and as human beings. When people feel valued, they feel better about coming in to work. Overall company morale increases and people are motivated to come to work and do a good job.

What is the difference between equal pay and gender pay gap?

The gender pay gap measures the difference between men and women's average pay. Equal pay, on the other hand, is the legal obligation under the Equality Act 2010 that requires employers to give men and women equal pay if they are employed to do like work.

Should employees be treated equally?

Fair and consistent treatment of employees in the workplace builds trust, enhances morale, deepens loyalty and spurs productivity. By contrast, favoritism breeds animosity and resentment toward favored individuals and the employer.