The gender pay gap refers to the difference in pay between men and women in the workplace, usually calculated as a percentage. Most countries have this payment gap, as women are historically less compensated for their work than men are.
But while the gender pay gap is still alive and well in the workplace, more effort is being put into mitigating it.
Why is there a gender pay gap?
The gender pay gap exists for lots of reasons including (but very much not limited to):
- Gender stereotypes and biases influencing hiring and promotion decisions
- The impact of caregiving responsibilities disproportionally falling on women
- Societal and cultural norms perpetuating inequality
Gender pay gap examples & statistics
Over the years, there’s been improvement in narrowing the gender payment gap in the US, though there still seems to be a ways to go, as recent statistics from Pew Research indicate:
- In 2022, women ages 25 to 34 earned around 92 cents for every dollar earned by men in that age group. Meanwhile, the pay gap for workers in all age groups was 18 cents.
- Men are more likely to hold higher management roles compared to women, with 28% of men and 21% of women reporting to be in these positions.
- Women are also less likely than men to aim for higher-ranking roles, with 46% of women compared to 37% of men reporting less of an inclination for these positions.
Narrowing the gender pay gap for a global workforce
Gender pay inequality is getting an increasingly bigger focus in the business market. In fact, many investors and other stakeholders today demand that companies report gender equality progress in their operations.
For companies with global operations, narrowing this payment gap can become even more complex. This is due to a number of reasons, including cultural norms and variations in the labor market.
These factors can make it difficult for organizations with global workforce to create standardized procedures and implement strategies to create gender pay equality across the board.
Payment execution platforms can help companies by displaying clear employment and payment trends, making it easier to identify where the pay disparities are most noticeable and how to best address them.