Why Organisations Look for Support with the Gender Pay Gap - Part 1: CEO Demands
Michelle Gyimah
Helping HR Directors solve pay gaps for good: Data-driven strategies, workshops & audits to build fairer, more transparent organisations | Recognised by LinkedIn, L’Oréal, BBC & The Guardian
The gender pay gap has been a persistent issue for many organisations. Despite efforts to address it, progress has been slow. However, there are several reasons why organisations come to me looking for support to close the gender pay gap. This article is the first in a series of six and will explore why CEOs/MDs might want improvement in this area.
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External Pressure
One of the reasons why CEOs are demanding an improvement in the gender pay gap is external pressure. This pressure can come from stakeholders, investors, or the media. Stakeholders and investors are now more concerned about diversity data and how organisations are addressing their gender pay gaps. They are asking tough questions, and they want to see results. The media is also shining a light on this issue, and bad publicity (on social media and standard media) can harm a company's reputation.
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Mergers and Acquisitions
Mergers and acquisitions can also be a catalyst for change. When organisations merge, there's often a review of their workforce, culture, and diversity data. Gender pay gap figures can be a critical factor in the decision-making process. If an organisation has a significant gender pay gap, it could raise concerns about their culture and their commitment to diversity and inclusion.
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CEO Personal Interest
CEOs and MDs may also demand an improvement in the gender pay gap because of personal or professional reasons. They may have been following the progress made in this area and feel that not enough has been done. Alternatively, they may have had a moment of realisation that the current situation is unacceptable and needs to change.
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The Action Plan
When a CEO demands an improvement in the gender pay gap, it's up to the organisation to figure out who is responsible for implementing the changes and how to go about it. The CEO will usually set milestones, timelines, and measures of success. The measure of success is often a reduction in the gender pay gap figure. The organisation must be committed to this goal and must work towards achieving it.
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Conclusion
Closing the gender pay gap is a complex issue that requires commitment, effort, and time.
When a CEO demands an improvement in the gender pay gap, it's a significant step in the right direction. Organisations must work together to create a plan of action, set achievable milestones, and measure success.
It's time for organisations to take this issue seriously and commit to creating a more equitable workplace for all employees.
In the next article in this series, we will explore how discontent amongst employees can drive organisations to address their gender pay gaps.
Until next week,
Michelle
P.S. If you want to find out how I’ve been supporting organisations with this work and would like to explore how I could do the same for you, book a call with me?here.