The gender pay gap is a complex issue with many causes, which are often inter-related. On top of gender and ethnicity pay gap reporting, 2020 is the first year quoted companies with more than 250 employees are obliged to deliver CEO pay ratio reports. Which means appetite for pay transparency is only growing among employees, says CIPD senior performance and reward adviser Charles Cotton, who also points to the small handful of employers taking the radical step of publishing exactly what everyone’s paid, either internally or even publicly. The communication piece is important too. That’s how I found out. The Equal Pay Act was an effort to correct a centuries-old problem of gender-based wage discrimination.Women made up a quarter of the American workforce by the early 20th century, but they were traditionally paid far less than men, even in cases where they performed the same job. 4/2/2019 by Rabbi Hara Person. The government closed its consultation on this in January 2019 and the outcome remains unclear, although the likelihood is it will be introduced at some point over the next couple of years. Although “those tend to be relatively new, smallish IT set-ups… there is still only one direction of travel when it comes to pay transparency”, he says. Causes . Sophia resigned shortly after her line manager refused to provide a reason for paying her unequally. “While essential, equal pay audits, and the subsequent addressing of any imbalances, do not come without challenges,” says Wallis. The collapse of the Soviet Union and the rise of China brought over a billion new workers into the global economy. The gender pay gap (or the gender wage gap) is a metric that tells us the difference in pay (or wages, or income) between women and men. The Pay Gap Through the Years A Range of Inequity The gender pay gap is the result of many factors, including race and ethnicity, disability, access to education and age. Unequal pay is part of the broader problem of systemic discrimination in employment, and pay equity is one essential tool for creating systemic change. Segregation is frequently linked to stereotypes. As a result, different groups of women experience very different gaps in pay. President John F. Kennedy signed the Equal Pay Act into law on June 10, 1963. Some of the key factors that contribute to unequal pay between men and women, such as job segregation and stereotyping. The problem for many, explains Cotton, is both maintaining accurate data on what people are paid, and sticking consistently to a sound, official rationale when making pay decisions. The Injustice of Unequal Pay. Tea Colaianni, founder and chair of Women in Hospitality, Travel & Leisure and former HR director, agrees that if equal pay audits are to achieve meaningful change, they require the support of all managers who have the responsibility and authority to put right any unjustified pay and benefits inequalities identified. Someone might have more experience, someone might have more relevant experience, someone might have been in the organisation longer. But he is sceptical about the effectiveness of criminalising unequal pay based on gender as Iceland now does, mainly because of the city’s different legal setting and culture. Causes Industrial Revolution : Since ancient times, women have been present in the workforce in agriculture and other tasks. Consequently, fewer women work in scientific and technical jobs, while women often work in lower valued and lower paid sectors of the economy.   “These can range from identifying which roles are similar – difficult for organisations where there is no existing objective evaluation system in place – to the sheer cost of addressing any inequalities. And given other moves to shine the spotlight on fair pay, more pay transparency is undoubtedly coming. Houses in Naples, Florida. In this briefing you will find: Information on how … But as doubts around the accuracy of the first two rounds of gender pay gap data show, some HR departments might need to call in outside help. With the next full UK census due in March 2021, Cotton thinks it possible the government will wait until the ethnic classifications are agreed for ethnicity pay gap reporting, so as to ensure consistency. “The challenge for many larger organisations is they have grown over time, taking over other companies, and there may not necessarily be any logic behind why they are paying people as they are now,” he says. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. This was the first time that PES Women, together with Zij-Kant, marked the European Unequal Pay Day. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images) Rising economic inequality in the United States has become a central issue in the race for the Democratic presidential nomination, and discussions about policy interventions that might help address it are likely to remain at the forefront in the 2020 general election. Among men and women employed full time, 60 percent of the wage gap can be attributed to known factors such as work experience at 10 percent, union … If you’re part of a larger organisation obliged to conduct gender pay gap reporting, you should already be doing this as part of the process and have accurate data at your fingertips. Managers must have the authority and take responsibility for addressing any inequalities and, once any are uncovered, it’s essential action is taken and plans are put in place. On Equal Pay Day, it’s critical that we each do what we can to make workplaces more equitable. When ethnicity pay gap reporting is introduced, similar findings are likely to emerge,” she adds. Negative, deeply rooted stereotypes about women’s abilities and opportunities are at the root of gender discrimination, perpetuating societal issues like pay disparity, occupational segregation … “I raised this with my manager, who said it had nothing to do with her – I’d have to go higher up, which I did. Plenty of time, then, to have finally laid to rest the issue of equal pay. Eighty-six per cent of women would be in favour of this, according to the society’s accompanying report Why Women Need a Right to Know, which also found that three out of every five working women are either in the dark about how much male counterparts earn, or are aware the men earn more. What can employers learn from Samira Ahmed’s discrimination case. 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