May 2, 2019

Five ways to address the gender pay gap at your company

Promoting salary equality at your company requires analysis, commitment and changes to how you hire and manage employees. Follow these five tips to address the gender pay gap at your company.

Glassdoor

This post was originally published on Glassdoor, one of the world's largest job posting and recruiting sites.

You’ve heard the stats before: men earn more on average than women. And it’s true: A Glassdoor analysis [found the gap between men and] women in the U.S. is 21.4 percent, meaning women earn, on average, $0.79 for every $1.00 men earn. This represents a 2.7 percentage point shrink in the unadjusted pay gap from three years ago, when women earned, on average, $0.76 for every $1.00 men earn.

Gender equality isn’t just about pay: greater gender diversity is good for business and makes hiring easier.

  • Gender-diverse companies are 15 percent more likely to earn above-average revenue (2)
  • 3 in 5 say they would not apply to work at a company where a pay gap exists (3)

Promoting salary equality at your company requires analysis, commitment and changes to how you hire and manage employees. Follow these five tips to address the gender pay gap at your company.

1. Conduct a gender pay gap analysis

Gather your data and enlist an analyst to take a look at your salary and bonus data by gender, department, tenure, age, education, and location. For a step-by-step guide, see How to Analyze Your Gender Pay Gap: An Employer’s Guide

2. Pledge your commitment

Show candidates your commitment by taking the Equal Pay Pledge on Glassdoor. Demonstrate your commitment to equal pay by sharing the results of your study with employees and celebrating any adjustments made.

3. Make equitable offers

Since research shows that women and older workers are less likely to negotiate, leave less room for negotiation in your offers. Evaluate pay scales at least annually to become more transparent in your approach to pay.

[Related: How to Use Salary Estimates to Determine Your Next Employee’s Salary]

4. Equalize performance reviews

Performance reviews, promotions and bonus distributions can be affected by unconscious bias relating to behavioral traits, favoritism and male-based definitions of success. Provide manager training and controls to ensure women and men are being evaluated fairly.

5. Start the conversation

Encourage employees to use their voice by posting reviews and salaries on Glassdoor.

1. Glassdoor Economic Research, Demystifying the Gender Pay Gap, March 2016
2. McKinsey, Why Diversity Matters, January 2015
3. Glassdoor Economic Research, Global Gender Pay Gap Survey, February 2016

Learn more about how using technology to make more informed compensation decisions

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