101 days
Today is #equalpayday.
April 12th 2022 marks how far into the calendar year women need to work to earn what men, on average, earned in the previous calendar year - an extra 101 days!
Just to be clear, that means women, on average, have to work from 1st January 2021 until 12th April 2022 to make what men earned in 2021.
And this is not just about gender - the gap increases substantially when we consider other intersecting forms of discrimination such as racial and ethnic backgrounds, immigration status, age, disabilities and sexuality.
It’s senseless that we are still talking about this, but the reality is true.
Some time ago, when developing a cost model for an energy consultancy, I needed to look at the pay of nearly 100 employees to estimate costs to deliver different services. While the cost model itself was successful, what was even more important in my eyes was the revelation of such huge inequities in pay between men and women. These were at some times, more than double for the same managerial level, even when the women had great experience and time at the organization. This was when the reality of the pay gap set in for me.
Of course, I spoke to the leaders of the organization and urged them to make steps to address this. But these steps are taking too long for them and for the majority of organizations where gender pay gaps persist.
Photo by Farnoosh Abdollahi
Some organizations are changing this. For example Unbounce who launched the #PayUpForProgress campaign in 2020 after actively closing the pay gap earlier that year.
Patagonia, known for their activism as much as for their outdoor apparel, have gone beyond equal pay to provide free onsite childcare (since 1983!).
But this is not the norm.
While we have made modest improvements in changes towards gender equality in workplaces on boards and in senior leadership positions, even momentum here has slowed and is at risk of stalling in some cases, according to Tina Strehlke, CEO of Minerva BC.
The Pay Equity Act, which came into force in Canada in 2021, only applies to about 4600 federally regulated employers with an average of 10 or more employees. Similarly the UK’s Equality Act 2010, while designed to ensure equal pay for equal work, requires that employees need to dispute their case to enforce the law.
With a predicted 51 years for Canada to close its gender gap, we all need to play a part.
How?
Crunch the data. Only 39% of Canadian companies have accurate data on gender pay differences. In the UK, organizations over 250 are mandated to report this (the data source for the @paygapapp). Let’s all change this to encourage all organizations to collect and share this information.
Confront the numbers and take action to address any gaps – for example Starbucks implemented equal footing, transparency and accountability in order to reach gender and racial pay equity in the United States in 2018. Deloitte has released a gender pay gap report annually since 2015 to ensure they remain accountable for pay equity.
Design programs to directly address barriers to pay equity - evidence highlights a considerable motherhood penalty for women who choose to have children, then return to the workplace and balance competing expectations at home and at work. Let’s ensure organizations consider maternity programs like Maturn or onsite childcare like Patagonia to reduce the motherhood penalty.
Create flexibility in the workforce – the COVID-19 pandemic forced workplaces to consider their flexible work arrangements overnight. With greater productivity and improved employee engagement as clear benefits, let’s be more purposeful with these practices and ensure employees feel that adopting flexible working won’t count against them.
Advocate for pay transparency– while countries are making steps on pay transparency legislation (e.g. the UK, Iceland, Australia, Denmark, France, and Germany), this is not moving quickly enough. Take action by writing to your member of parliament to urge them to take action on pay transparency. Example letters for jurisdictions in Canada can be found here and here.
For more resources to help your journey to pay equity check out the Unbounce #payupforprogress toolkit and pledge.
Is your organization leading the way?