Tuesday, April 2 – Equal Pay Day – serves as a day to remind Americans how far into the year women must work to earn what men earned in the previous year. For change to really happen, it is crucial that hiring managers in all organizations take income equality head on to narrow the wage gap, which remains at an astonishing 27 percent in the U.S.
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new analysis of payroll data by the ADP Research Institute (ADPRI) called "Rethinking Gender Pay Inequity in a More Transparent World" makes the situation clear: If leaders want to avoid the ill effects of gender pay disparity, then the relative rates of pay at time of hire simply must change. And that means going back to the drawing board when it comes to the process of hiring, incentives and promotion.
The report found that women ages 20 to 30 started jobs at about the same pay as men, but after six years and when bonus was factored in, earned 21 percent less. Newly hired women ages 40 to 50 and making between $40,000 and $60,000 received an average bonus of 8.5 percent, while men received bonuses of 11.4 percent—a gap of 74 percent. In most scenarios, irrespective of age or income, there exists a great disparity in incentive pay. This may be due to a lack of negotiating skills, social or domestic issues, etc., on the part of women.
Read the report here
