SHATTERING SALARY SILENCE

Despite the recognized importance of diversity, equity, and inclusion in driving organizational success and aligning with societal values of gender equality, meaningful progress on addressing pay discrepancies between men and women across the workforce has stagnated over the past few years. According to the World Economic Forum, parity has advanced by only 4.1 percentage points since 2006, with the overall rate of change slowing significantly. Closing the overall gender gap will require 131 years*. Working to narrow the gender pay gap remains a challenge across the workforce that demands collaborative efforts to resolve. 

Current Pay Discrepancy Between Men and Women

On average, women earn 16% less than men, and for every dollar a man makes, women earn only 84 cents.*This pay disparity dramatically widens when other factors, such as race and ethnicity, are considered. According to Forbes,  Black and Hispanic women rank among the lowest paid workers in rural areas– receiving only 65 cents for every dollar a rural non-Hipsanic white man makes. Additionally, the lifetime wage gap is so large that Black and Latinx women would have to work full time year-round to nearly 80 or 90 to make what white non-Hispanic men are paid by age 60*. 

Gender pay gaps are a large DEI issue. Historical patterns of systemic inequities across the workforce fuel pay disparity. The issues include but are not limited to, implicit bias, stereotypes resulting in occupational segregation, and inadequate access to high-paying roles. The systemic issues further exacerbate inequity in the gender pay gap and stifle progress toward equal pay practices. 

So, how do we work towards narrowing the gender pay gap? There’s no one solution, and we still have a long way to go to achieve pay equity. However, establishing pay transparency promises fair, equitable compensation for candidates and professionals throughout the workforce. 

Increasing Pay Transparency Laws

Pay transparency holds employers accountable and enforces fair wages. It also reduces implicit biases, which are considered when hiring a candidate. In states like New York, Colorado, Nevada, Rhode Island, and more, employers are now legally required to publish salary ranges in job listings. This clarifies salary expectations and creates wage parity for candidates. 

During the interview and hiring process, most U.S. workers do not ask for pay higher than initial offerings*; this may be due to multiple factors: satisfaction with an initial salary offering, discomfort asking for higher pay, or fear of elimination from a job’s candidate pool. With a contrast of 42 versus 33 percent, a Pew Research study revealed that “women are more likely than men to say they didn’t feel comfortable asking for higher pay.” At Monday, we work with women candidates to empower them to negotiate their salary to receive the pay they deserve. Yes, there are many guides (read our tips) to help employees negotiate their salaries, but at the end of the day, it’s an uncomfortable and often daunting thing for many candidates. This is why we work with candidates on the best practices for going into a negotiation, or we often negotiate on their behalf to ensure the process is as equitable as possible.

For Employers: Implementing Pay Transparency Practices

Companies can promote pay equity and foster a more inclusive workplace culture by implementing the following pay transparency measures:

Establish pay ranges or pay bands: Companies can establish pay ranges or pay bands for different job levels and positions within the organization. These ranges should be based on market data and clearly defined criteria, such as education, experience, and skills required for the role.

Structured pay reviews: Companies should have a structured and transparent process for conducting pay reviews and adjustments. This process should be based on clear criteria, such as performance evaluations, market data, and internal equity considerations.

Encourage open discussions: Foster an environment where employees feel comfortable discussing and asking questions about pay practices. Managers should be prepared to explain the rationale behind pay decisions and address any concerns or discrepancies.

Conduct pay equity analyses: Regularly conduct pay equity analyses to identify and address any potential pay disparities based on gender, race, or other protected characteristics. This demonstrates the company's commitment to fair and equitable pay practices.

Monday Champions Pay Transparency

At Monday Talent, we recognize the importance of addressing this issue head-on and advocating for greater transparency in pay practices to foster a fair and equitable work environment. We are committed to promoting pay transparency as a fundamental principle of workplace culture and client satisfaction. 

As the gender pay gap remains an ongoing issue in our country, Monday continues to lead the charge toward a more inclusive and equitable workplace where every candidate we work with is valued and compensated fairly. 

*Haan, K. (2023, February 27). 52 Gender Pay Gap Statistics In 2023 – Forbes Advisor. Www.forbes.com. https://www.forbes.com/advisor/business/gender-pay-gap-statistics/#:~:text=What%20is%20the%20wage%20gap‌

*Jdickler. (2024, March 19). Equal pay day highlights an up to $1.2 million salary shortfall for women of color. CNBC. https://www.cnbc.com/2024/03/12/equal-pay-day-highlights-1point2-million-salary-shortfall-for-some-women.html 

*Parker, K. (2023, April 5). When negotiating starting salaries, most U.S. women and men don’t ask for higher pay. Pew Research Center. https://www.pewresearch.org/short-reads/2023/04/05/when-negotiating-starting-salaries-most-us-women-and-men-dont-ask-for-higher-pay/