What can HR Leaders do to Reduce Gender Pay Gap?

What is Gender Pay Gap?

Gender Pay Gap means the difference in the average income paid to men compared to the average income paid to women in a workplace, which represents that there are unequal economic opportunities on the basis of gender. It is not only about unequal pay for the same job, but it’s about the overall earnings gap between men and women in the workforce. It takes into account various factors, such as differences in average hourly or annual wages, bonuses, and other compensation-related benefits....

What is the Equal Remuneration Act, of 1976?

This act was brought by the government of India to reduce discrimination in salary or compensation paid to employees on the basis of gender. This act states that if a male and female are doing work of the same nature, then they should be paid the same compensation....

Causes of Gender Pay Gap

These causes are mostly because women have gotten fewer opportunities than in earlier times. A smaller number of women are employed in leadership positions. Even women are not allowed to study in earlier times in many countries. But nowadays, people are taking the initiative. Women are getting education and understanding their rights, which is solving the problem slowly. There are different causes which promote the gender pay gap, which are as follows:...

Why should HR Leaders care about Gender Pay Gap?

HR officials of a workplace must take care of the pay gap in their workplace for the following reasons:...

How is Gender Pay Gap Calculated?

Gender pay gap can be calculated through two methods, one is mean, and the other is median....

How to Report Gender Pay Gap?

The Equal Remuneration Act does not provide the outline for reporting the Gender Pay Gap, rather it provides options for reporting unequal pay. But if you are having problems related to the Gender Pay Gap you can take the following steps,...

What can HR Leaders do to Reduce Gender Pay Gap?

Following steps can be taken by HR leaders to reduce the gender pay gap,...

Why should Eliminating Gender Pay Gap be a Part of Modern HR Strategy?

1. Talent Attraction and Retention: Top-skilled employees find the organisation’s reputation when they find that the organisation prioritise fair pay and does not discriminate on the basis of gender or any other means...

Difference between Unequal Pay and Gender Pay Gap

FeatureUnequal PayGender Pay GapDefinitionUnequal pay means different income is paid to employees of the same skills and jobs.Gender pay gap refers to the difference between the average wage of men and women in an organisation.Nature of DiscriminationDirect and explicit discrimination where individuals are paid less for the same job based solely on gender.Systemic and indirect discrimination is influenced by factors such as occupational segregation, career progression, and biases in hiring and promotion.FocusThe biggest difference is that this is more focused on the individual pay of an employee rather than everyone.It’s a broader term which refers to the difference between the average salary of all employees of an organisation.LegalityOften illegal and a clear violation of anti-discrimination laws.While not illegal in itself, some jurisdictions require reporting to tackle and reduce the gender pay gap....

Frequently Asked Questions

1. Why does Gender Pay Gap exist till now?...