GEC #4 How to Reduce the Wage Gap Between Men and Women

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Author: Jordi Soler – Spain FMA GEC Representative

In 70% of large European companies, only the human resources and compensation areas are concerned with analyzing and proposing solutions in terms of equal paywhy is the entire organization not involved if it is a problem that affects everybody?

In large companies it is increasingly difficult for there to be a difference because there is more surveillance and supervision, but the data that is handled in Spain to achieve gender pay balance speak of 70 years, and 217 according to the world forum. These data are hardly justifiable and reflect the pace of implementation of government measures.

The economic impact of the gender gap exceeds 200,000 million euros, which is equivalent to 16.8% of GDP according to PwC’s seventh ClosingGap report, and according to the latest Korn Ferry remuneration report, the total salary of a man it can exceed up to 9% that of a woman holding the same position.

How can we go towards pay equity?

As women gain access to managerial positions, the gap will be reduced, for this it is necessary to assess the jobs and analyze the workforce based on the levels of responsibility or contributions defined objectively.

We also have to incorporate comparable measurement systems to be able to draw conclusions, such as evaluating the specific capacities of applicants for the given position without including any sign of identity, in a case from the USA it was found that 58% of candidates for interview they are women, and 68% of those finally hired also.

We must not forget that, if recruiting is the starting point to foster diversity in its broadest sense, the path to pay equity continues in career development. It is important to define how salary progress can be made in the organization and what elements participate in that decision (the value of the role in terms of its impact with the organization, the value that the market gives it and the evaluation of the occupant’s performance).

We have talked about processes and systems to be able to approach a salary equity, as a whole they are tools or instruments that in terms of salary equity are highly valued, whether they have a penalizing or incentive character, but it must be remembered that they are mere support mechanisms to incentivize organizations to pay fairly.