On March 16, 2023, Diversity Works discussed the pay gap between women and men in the United States. Although much progress has been made at the occupational level, women still lag behind men in advancement opportunities and face a “motherhood penalty.” In case you missed it, the link to our presentation is here.
Closing the gender pay gap is a complex issue that requires action from multiple stakeholders, including employers, policymakers, and society at large. However, there are several steps that employers can take to help close the gender pay gap, including:
Publish Pay Grades
A best practice is establishing job categories and associated pay grades. This will ensure a fair compensation structure organization-wide. Even though each level has a salary range, this will eliminate wide variations for similar jobs. Employers should implement transparent pay practices, such as publishing salary ranges for each job position and providing regular opportunities for employee feedback on pay.
Conduct an Annual Pay Equity Analysis
Employers should conduct a pay equity analysis to determine whether gender pay disparities exist at the occupation level and writ large. You can begin with this tw0 step process. This first step examines pay differences between men and women who hold similar jobs and have similar levels of experience and education. The second step compares median wages for men and women organization-wide, in other words, across all occupations.
Eliminate Bias in Hiring and Promotion
Employers should review their hiring and promotion processes to identify and eliminate biases that may prevent women from being hired or promoted to higher-paying positions.
Provide Equal Access to Training and Development
Employers should provide equal training and development opportunities for all employees, including women. This will help ensure that women have the skills and knowledge they need to advance in their careers.
Offer Flexible Work Arrangements
Employers should offer flexible work arrangements, such as telecommuting and flexible schedules, to help women balance work and family responsibilities. This can help women remain in the workforce and advance in their careers.
Encourage Salary Negotiation
Employers should encourage salary negotiation and provide resources to help employees negotiate fair compensation. Women are often less likely to negotiate their salaries than men, so employers should provide training and support to help women negotiate their pay more comfortably.
Please join us on April 20 at 1PM ET when we will be discussing employee resource groups. ERGs are a great way to provide support for underrepresented groups and create opportunities for all employees to learn about allyship and the value of diversity. We’ll be discussing different types of employee resource groups, what they need to succeed and drive strategic value, and how to craft an effective group charter. You can register for our live event here.

About Diversity Works
Diversity Works helps organizations understand and leverage the power of workplace diversity, equity, and inclusion.