The latest Global Gender Pay Gap Report has dropped, and we’ve got some work to do

In 2020, data from the Global Gender Pay Gap Report indicated that it would take just under 100 years to close the gender pay gap. This week, the release of the 2022 report puts our timeline to parity at 132 years, a generation longer than pre-pandemic estimates.?

It’s in all of our hands to speed up that journey and close the gap faster for the next generation of workers. With data from the report, I wanted to take some time to talk about how we can make it happen.

Work like Iceland

Iceland is the only country in the index to have closed more than 90% of its gender gaps. Other Scandinavian countries including Finland, Norway and Sweden are also in the top 5. Part of Iceland’s success has been its determination to trailblaze equity efforts across workplaces. In 2018, it was the first country to make a certification publicizing equal pay for equal work the law, and in 2020, hefty fines were put in place for companies with more than 25 employees who did not comply. The Harvard Business Review reports that this law has given women more trust in their workplaces , and has improved the work environment for all.?

As well as strong enforcement of equal pay legislation, shifting the responsibility to the business is a smart move, making equal pay truly the employer’s problem, rather than expecting employees to speak up when they see inequality after the fact. Businesses in?Iceland are tasked with valuing work and skills outside of whoever they hire, by setting a salary before they start interviewing, and then hiring for the role, not the person.?

Alleviate care responsibilities?

This year, gender parity in the labor force is lower than it has been since the index has been gathering data, standing at 62.9%, and taking a sharp nosedive since 2020. A lot of this is due to unpaid work and childcare commitments that fall unfairly on women. Look at pre-pandemic numbers from a study of 33 countries, covering 54% of the global working-age population. It showed that unpaid work took up 19% of mens’ time compared with 55% in women.?

This was pre-pandemic, so what did we expect to happen when childcare facilities closed and parents had to manage full time work without even part-time childcare? Suddenly, women started dropping out of the workplace in droves. And now, with the cost of living rising month by month, it’s harder than ever to justify re-entering the labor market. As the report comments, “With rising childcare costs, there is a high risk that an asymmetric demand to provide unpaid care work will continue to be imposed on women.”

Today’s organizations need to be thinking about how they can reduce the burden, and look at providing benefits that have been shown to make an impact, such as financial support with childcare and generous parental leave for both parents, no matter the regional regulations. Governments should be lobbied to offer extra provisions for low-income families, as I don’t believe it’s a coincidence that the regions who do not have a public provision for childcare services are those with the lowest gender parity.

Look to bridge skills gaps

We’re still seeing too much of a difference in the percentage of women in STEM fields compared to men. This year we saw just 1.7% of female graduates leave higher education with a degree in ICT, compared to 8.2% of males. In Engineering, it’s 24.6% of men and just 6.6% of women.?

Interestingly, the data shows that with online training, the numbers are much more even. Women want to upskill and reskill, they are actively looking for opportunities to grow in their careers, but they often need to learn in their own time, at their own pace, and around their additional commitments of life and family.

This data should be a call to action to learning and development teams across all businesses to ensure that they are offering adequate provision for professional development. By adding STEM-based courses to employee learning platforms, or ensuring customer education is available to all accounts and users, women will naturally step up and gain valuable skills which can help to reduce disparity.?

Take mental health seriously

The report found that overall levels of stress, sadness, worry and anger increased by 1% in women in the last year, and that stress levels were 4% higher in women than in men. “This adds to a growing global health burden of mental and emotional disorders, which is disproportionately affecting women's health and well-being.”?

We will never close the gender gaps if women’s mental health isn’t taken seriously in the workplace, and this means a lot more than delivering a bunch of flowers on International Women’s Day.?

Acknowledge that there is a gender gap in stress levels at work, and then look for ways to reduce the impact. For instance, you could:?

• Consider implementing mentoring programs that support women in learning the skills they need such as resilience, confidence and communication.?
• Create opportunities for women to get regular feedback and performance reviews, so that they know where they stand, and don’t have to go out of their way to ask.?
• Speak to managers about giving honest and actionable feedback, as one study showed that women are getting helpful feedback 20% less than their male peers.?

Looking at the numbers, we’re headed in the wrong direction in terms of gender equality in the workplace. Equal pay for equal work is no longer something to shout about - it’s a basic human right for today’s working women. However, the companies who will truly make a difference will be those who prioritize upskilling opportunities, value-based salaries, childcare benefits, and mental health provision.?