Debunking Gender Pay Gap Myths and Solving the Real Issues

As we progress through this #womenshistorymonth it is a good time to revisit progress against one of the persistent inequities in society - the #genderpaygap.

It may surprise some that there are several myths regarding this topic that need to be debunked to clarify the path forward to solving this complex issue. The rationale for closing this gap couldn't be more obvious - increasing economic growth and prosperity of the majority population (at least here in the US where women represent 50.5% of the people), reducing poverty, improving family well-being, and even enhancing corporate performance.

Myth #1: All women are paid only about 83% of what men are paid.

• Truth: That number is comparing the total amount of salary paid to men and to women in this country. It does not take into account such crucial factors as profession, qualifications, type of employer, seniority, hours worked or many other things that go into deciding compensation. When these basic factors are taken into account, the gender pay gap vastly decreases.
• Truth: There is an uncontrolled gender pay gap and a controlled gender pay gap. The uncontrolled gender pay gap serves as a mirror reflecting our collective valuation of women's contributions versus those of men within the workforce. This gap, often termed the "opportunity gap," lays bare the disparity in employment and opportunities allocated between genders, illuminating a skewed playing field. On the flip side, the controlled gender pay gap scrutinizes the principle of "equal pay for equal work"—it evaluates the compensation women receive relative to men when both hold identical or comparable roles, underpinned by similar qualifications. This differentiation is crucial; it not only highlights the existing inequities but also underscores the societal and organizational shifts necessary to achieve true parity in the workplace. When comparing two people in the same profession, with the same seniority, working the same number of hours, and so forth, women earn $0.98 for every dollar that a man earns. (https://www.payscale.com/research-and-insights/gender-pay-gap )

Myth #2: The wage gap exists because women (and other ethnicities and identities choose lower-paying careers.)

• Truth: Women (and other ethnicities/identities) are more limited than men in terms of livelihood options due to bias and discrimination (especially in STEM fields such as science, technology, engineering, and mathematics).
• Truth: According to the 2024 Payscale Gender Pay Gap report , "the top 20 positions with the widest controlled gender pay gap include jobs in sales, jobs in religious organizations, jobs in finance, jobs in installation, maintenance, and repair, jobs in manufacturing, jobs in operations, and jobs in surgery. Holistically, these are jobs and industries subject to stronger gender norms, where it might be more challenging for women to find employment as well as compete for equal pay."

Myth #3: All women face the same pay gap.

• Truth: The pay gap is nearly non-existent for young women but grows over time due to women’s choices about family. There’s almost no pay gap for single childless women, but the wage gap begins to increase around age 25, likely due to choices about family roles.
• Truth: The "motherhood penalty" refers to a systematic setback many women face in their careers and earnings following motherhood. This penalty manifests through reduced income, missed promotion opportunities, and often a diminished perception of professional commitment and capability. It's a stark illustration of how deeply embedded societal norms and workplace structures penalize women for embracing motherhood, subtly reinforcing the archaic notion that professional success and parenting are mutually exclusive for women.

Addressable Issue #1: The Uncontrolled Pay Gap

In 2024, the uncontrolled gender pay gap stands at $0.83, signifying that, on aggregate, women's roles yield earnings that are 17 percent lower than those of their male counterparts. This uncontrolled gap is equally significant as the controlled pay gap, laying bare the broader disparity in economic influence and wealth between genders, highlighting the gendered nature of power and financial accumulation. The eradication of the controlled pay gap, ensuring equal pay for men and women in identical roles with similar qualifications, does not diminish the importance of the uncontrolled gap. It continues to underscore a persistent issue: the access to higher-paying jobs remains unevenly distributed, with men enjoying a disproportionate advantage over women in reaching these lucrative positions. Solving this issue requires a multifaceted strategy including:

• Leadership Commitment: Leaders at all levels must commit to closing the gender pay gap, recognizing it as both a moral imperative and a strategic advantage. This involves setting clear goals, measuring progress, and holding themselves accountable for achieving parity.
• Transparent Compensation Practices: Organizations should adopt transparent compensation practices, including regular audits of pay equity across genders and roles. Transparency helps identify disparities and builds trust among employees, demonstrating the organization's commitment to fairness.
• Career Development Programs: Implementing mentoring and sponsorship programs, especially for women and underrepresented groups, to support their career advancement. These programs can help overcome the barriers to accessing opportunities and navigating professional growth.

Addressable Issue #2: Increasing Equity of Opportunity Regardless of Role

Research and analysis of the gender pay gap shed light on the societal prejudice that men are inherently more fit for work and warrant higher compensation than women, even when performing identical roles. While aggregate data highlight this issue broadly, it becomes unlawful at the level of an individual organization if the differences in pay cannot be justly accounted for by the organization's compensation strategy. Therefore, addressing this issue requires a holistic and systemic approach to increasing equity of opportunity across all roles, focusing on creating an environment where everyone, regardless of gender, race, or background, has access to the same opportunities for growth and advancement. Some elements must consider:

• Implement Bias-Free Recruitment and Promotion Processes: Use structured interviews, standardized evaluation criteria, and diverse hiring panels to minimize biases in recruitment and promotion decisions. This also includes transparently sharing criteria for advancement and ensuring that opportunities are communicated broadly to reach all potential candidates.
• Regular Equity Audits: Conduct regular audits of organizational practices, from hiring through promotion and beyond, to identify and address any disparities in opportunity. This should include reviewing how projects are assigned, who is considered for high-visibility tasks, and how contributions are recognized and rewarded.
• Enhance Employee Voice: Create platforms and forums where employees can share their experiences and suggestions for improving equity and inclusion. This could include regular surveys, town hall meetings, and feedback mechanisms that ensure all voices are heard and considered in decision-making processes.

Addressable Issue #3: Eliminating the "motherhood penalty"

The disparity in earnings between genders narrows when examining men and women without children, with the uncontrolled pay gap improving to $0.88 for every dollar, indicating that childless women encounter fewer societal obstacles in ascending the corporate hierarchy or landing high-stakes, well-compensated positions (notwithstanding the fact that mothers possess equal capability). Additionally, women may face a penalty based on the anticipation that they might eventually become mothers, even if they have no intention of having children, a phenomenon referred to as the "childbearing penalty."

Remarkably, when the gender pay gap analysis is adjusted for job characteristics, we find that there is equal pay. The incomes of women without children align with those of their male counterparts without children. This finding corroborates studies suggesting that the act of having a child, or the potential to have a child, is the primary or true driving factor behind the disparities in gender pay. Here are some ways to begin tackling this fundamentally unfair and antiquated "penalty":

• Implement Comprehensive Parental Leave Policies: Nations like Sweden and Norway offer extensive parental leave policies that are gender-neutral, encouraging both parents to share childcare responsibilities. These policies help diminish the career interruptions that mothers typically face, reducing the long-term impact on their earnings and career progression.
• Promote Flexible Working Arrangements: Flexible work options, including part-time work, remote work, and flexible hours, can help parents balance their professional and family responsibilities. For example, the Netherlands has embraced part-time work arrangements across various industries, allowing mothers (and fathers) to remain in the workforce without sacrificing their career advancement.
• Support Access to Affordable Childcare: Affordable and accessible childcare is crucial for enabling mothers to return to work. Countries like Denmark and Finland invest heavily in public childcare systems, ensuring that parents do not have to choose between their careers and affordable childcare. This support is critical in mitigating the motherhood penalty.
• Address Gender Stereotypes and Cultural Norms: Challenging and changing societal norms that perpetuate gender stereotypes is essential. Iceland, ranked highly for gender equality, actively promotes gender equality education from a young age and supports campaigns that challenge traditional gender roles, helping to shift perceptions about motherhood and work.
• Create Pathways for Career Advancement: Ensuring that mothers have equal opportunities for career advancement is crucial. Mentorship and sponsorship programs, as well as leadership development initiatives specifically designed for women, can help. For instance, in Canada, various professional networks and organizations offer mentorship programs to support women in leadership, helping to counteract the career stagnation often experienced by mothers.
• Encourage Paternity Leave: Encouraging fathers to take paternity leave, as seen in Iceland, can help normalize the shared responsibility of childcare, reducing the stigma and professional barriers mothers face. It promotes a more balanced distribution of childcare responsibilities, challenging the assumption that caregiving is primarily a woman's duty.

As we navigate the complexities of the gender pay gap, it's evident that misconceptions cloud our collective understanding and hinder progress. This gap isn't merely about pay disparities for identical roles but encompasses broader issues of access to opportunities and the devaluation of work traditionally done by women. The evidence dismantles the myth that the gap is a relic of the past, highlighting it as a current issue that stifles potential and equity. By adopting transparent compensation practices, fostering inclusive cultures, and supporting work-life balance, we can challenge the status quo and move toward closing this gap.

The journey toward equity requires collective action and a steadfast commitment to change. It's not only a matter of fairness but a pathway to unlocking human creativity and potential stifled under inequity. As we embrace the challenge, let us hold ourselves and our institutions accountable, weaving equity into our societal fabric. Addressing the pay gap head-on promises a brighter, more prosperous future for everyone. This endeavor uplifts not just individuals directly affected but elevates our society as a whole, making the pursuit of closing the equity pay gap a worthy and essential endeavor.

Learn more about the gender pay gap and solving all manner of justice, equity, diversity and inclusion issues in the Kirkus Starred The J.E.D.I. Leader's Playbook: The Insider's Guide to Eradicating Injustices, Eliminating Inequities, Expanding Diversity, and Enhancing Inclusion.