3 Ways To Help Close The Wage Gap On Black Women's Equal Pay Day

Today is Black Women’s Equal Pay Day, and it’s so important to raise awareness about that fact that not only does the wage gap persist for women in general, but it widens for minorities. The average woman makes about 80 cents for every dollar the average man makes, but the average black woman makes just 63 cents for every dollar that a white, non-Hispanic man makes.

Why are we still having this conversation? It’s not that complicated: Equal pay for equal work. Let’s face it, legacy runs faster than reality. It’s time to make equal pay happen for all. We already know that diversity is good for business, and fairly compensating employees is necessary in order to attract and retain the best talent. When we close the wage gap for all people, the economy, businesses, and society benefits. Here are three action steps that companies can take to help close the wage gap now.

Practice pay transparency. Pay transparency may be the most direct, immediate and low-cost solution to the wage gap—after all, if everyone knows what their colleagues make, there’s no question when a company has a gendered pay problem. The majority of women (61%) want employers to be transparent about the salaries of all employees and believe that this creates a more level playing field.

Run the numbers. Compensation analysis helps companies identify and fix gender pay discrepancies among their employees. Continual examination of wage data—taking into account factors such as market value, experience, and performance ratings—can clarify wage inequalities and ensure that managers are offering bias-free promotions, raises, and professional development.

SameWorks uses data to help companies combat pay inequity: Using its software, companies can track diversity metrics, identify potential pay gaps, and create a certification plan to ensure equal pay.

Have a diverse pipeline and a diverse hiring team. First and foremost, be sure that you are actively seeking out diverse candidates for jobs and promotions. Hiring managers should determine how much certain skills and responsibilities are worth based on reliable market information, rather than ask candidates about their salary history. If minorities and women are already underpaid, basing their future earnings on previous salaries won’t close gender and racial wage gaps—it will only exacerbate it. Asking about salary histories is even illegal in some states.

The other thing to note is that you can fill the pipeline with diverse candidates, but if your hiring team isn’t also diverse, you will likely end up with more of the same, since people tend to hire others who think and act like them.

How do you think companies can help close the wage gap for minorities and women?  I’d love to hear your solutions in the comments below.