The day, set by the National Committee on Pay Equity each year, calls attention to the pay gap that exists between working men and women in the U.S. According to the Bureau of Labor Statistics, women made 82% of men’s annual earnings in 2020.
A wider gap exists between the earnings of men and Black women, data shows. In fact, Equal Pay Day for Black women did not arrive until Aug. 3 last year.
As employers anticipate this year’s Equal Pay Day, we at PeopleBest want to consider what it means to provide equal compensation and how leaders can foster equality, in compensation and beyond.
Equal pay for equal work
The U.S. Congress passed the Equal Pay Act in 1963. Its central requirement is this: Provide equal pay for equal work.
The law ensures employers compensate men and women working similar jobs the same amount of money. It does make room for factors that can rightfully affect compensation, such as experience.
But the law’s main purpose is to protect workers from gender-based pay discrimination. Still, complying with the Equal Pay Act is only the beginning of establishing pay equity.
A checklist for equality
Employers looking to make sure their business offers equitable compensation can consider a number of strategies:
Establish and publish salary ranges
Don’t ask candidates about salary history information
Conduct regular pay audits
These practices are becoming the status quo among many employers. Some businesses are attempting to adopt progressive practices that ensure they’re treating workers well. Others — regardless of their intent — are adding the policies because of a growing number of state and local laws mandating them.
Supporting women, 365 days a year
As employers look to ensure equality in their compensation practices, leaders must consider how their efforts are matched throughout their organization — not just in the payroll department. Leaders embarking on this endeavor need to question how well their organization understands the goals, strengths and gaps among their workers, women included.
Let’s consider a hypothetical situation to help illustrate this point. Perhaps you employ a woman called Rosa, an entry-level graphic designer. Rosa always reports to work on Monday with a new story to share about her adventurous weekend. Her manager soon learns she shows high levels of mobility — she’ll be thrilled to work toward a promotion, especially if her new role includes business travel.
When this information is brought to light, leaders and managers can understand what motivates their reports, and what holds them back. This intel can reveal areas where your organization can better equip women.
Here’s my challenge to you: Find out about each of your person on your team. As a leader, it is your privilege to maximize the potential of each person you lead. Dig in. Learn. And help each every worker — no matter their gender — excel.
To find out how PeopleBest can help your team identify the amazing aspects of women on your team. Ask us how so that, together, we can make a difference. Book a demo and set up a time to chat with one of our specialists.
PeopleBest is a revolutionary, simple and powerful way to capture the exact ‘DNA of success’ inside people, teams and companies