International Women’s Day 2019

Creating A Brighter Future for All
March 8, 2019

Today we celebrate International Women’s Day. Across the globe, women are striving towards equality in all aspects of life. This article highlights an important aspect of this equality: pay disparity.

International Women’s Day: Pay Disparity

In the U.S. the wage gap stubbornly persists, despite a myriad of Federal, state and local regulations that require equal pay for equal work or make gender-based discrimination illegal (including Federal laws like the Equal Pay Act and Title VII of the Civil Rights Act; and state laws like the Minnesota Human Rights Act and Wisconsin’s Fair Employment Law).

According to a SHRM article, on average, “women earn 79 cents for every dollar men earn, and for black and Hispanic women, that number is even less—64 and 55 cents, respectively.”

According to research by AAUW, the gender pay gap is real, persistent and harmful to economic security. In the U.S., women “lose out on a staggering $500 billion each year because of the gender pay gap.” Over a career, women’s total estimated earnings loss is $700,000 for a high school graduate, $1.2 million for a college graduate, and $2 million for a professional school graduate. The complexity is only compounded when women are underrepresented in political positions, the boardroom and in senior leadership roles.

The Impact

Gender equity is not a women’s issue… it is a business issue and an economic issue. Research shows that the presence of female leaders is linked to better outcomes, including correlations to higher stock values, better performance and greater profitability. The McKinsey Global Institute estimates that a scenario in which women achieved gender parity could increase global output.

Pay equity impacts not only women but also families. According to 2015 stats, 42% of mothers were sole or primary breadwinners, bringing in at least half of family earnings. Nearly another one-quarter of mothers—22%—were co-breadwinners, bringing home from 25% to 49% of earnings for their families.

That means millions of families are impacted by pay disparity, with less money to pay student loan debt, purchase a home, make mortgage and rent payments, pay for childcare and save for retirement, along with countless other things.

A Focus on Solutions

Frustration with the lack of progress in closing gaps has spurred increased scrutiny and attempts at finding solutions. One solution is challenging the traditional notions of secrecy around pay. For example, every Minnesota employer must comply with the Wage Disclosure Protection law and allow employees to voluntarily discuss wages without retaliation. Minnesota employers that provide an Employee Handbook must include a notice of employee rights and remedies under this law.

Another common employer practice — using prior salary history in setting current pay — compounds any existing pay disparity. This has spurred states, such as California and Oregon, to attempt to tackle the issue with laws banning employers from asking job applicants about their past or current salary.

Some organizations have conducted voluntary internal wage audits to identify and correct disparities. For example, Salesforce (creators of a cloud based CRM platform) was one of the first companies to take a public stance on pay equality. Salesforce reported that since 2015, it has spent $6 million in adjustments to ensure equal pay for equal work.

International Women’s Day: A Brighter Future for All

Actively working towards pay equity and gender balance in the workplace, the boardroom, and at the highest levels of leadership will positively impact organizations, women and families across the nation.

We have come a long way… but there is still more work to be done. Together, we can make a difference! Today, we salute International Women’s Day and people around the world working towards pay equity.

#IWD2019 #balanceforbetter

About the Author

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HR thought leader, Stacy Johnston, provides innovative HR solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston writes and speaks about contemporary HR topics. She is a licensed attorney and holds the SHRM-CP and PHR credentials.

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