We are now existing with covid-19 for nearly a full year. Mandatory lockdowns are no longer a unique occurrence, and the assumptions we might have had regarding how the global pandemic could affect women have been soundly pushed to the gutter. When we were first told to work from home, my initial thought was one of hope. If now both caregivers, and obviously then I am referring to households with two employed adults, weren∏t commuting, then surely this will reorient the household chores plus childcare responsibilities? Which we could notice a change as then each obtained these tasks upon themselves equally.
Well I was wrong.
The pandemic far from becoming a good equalizer has pushed mothers not merely out of the workforce but is additionally affecting them more substantially. As noted in the World Economic Forum∏s document Women in the Workplace 2020, at year-end of 2020, tens of millions of females were thinking of retiring from the workplace for good.
Elsewhere, a British publication observed that females are 150% more likely than men to have either lost their employment or resign since the lockdown started. Minorities and females of color are even more negatively affected. The publication states that ∪compared with females overall, Latinas are more likely to worry about firings and furloughs. Additionally LGBTQ+ females are almost twice as likely as colleagues overall to cite mental health as one of their largest challenges during the pandemic.∩
One of the main reasons for these harsh job loss numbers? McKinsey∏s analysis found that women∏s jobs are 180% more vulnerable to the crisis than men∏s. A reason for this is that so many women are working in verticals decimated by covid-19. The hospitality sector employs more females than men.
It∏s not just in the economic area that women are suffering. Studies from the United Nations reveals an upsurge in calls to domestic violence phone banks across the planet.
Why pay parity is more critical than ever
However, there is another issue at work here. Frequently the main reason a female is the one to give up her job is purely economic. Who makes more earnings? When both parties are working, it is common sense for the person with the higher income to stay in their job and the other person to resign. Here∏s where the problem begins since, as we all are aware, the level of earnings inequality is overwhelming.
Observing the most current data, in 2020, women make merely $0.81 for each dollar a man made. The controlled gender payroll gap, which considers factors like job title, years of experience, industry, and geography, discovered that women make $0.98 for every $1 a man earns. While inside this controlled information, the largest gap is between the pay of black females and white men. As disclosed in the report, black females make $0.97 for every dollar a Caucasian man with the same qualifications is paid.
At initial glance, this appears to show that the differential in earning ability is generally minimal when you compare like with like. Yet, it∏s more subtle than that, and that is why it needs our focus. While men and women at the same experience may get similar pay, the problem is that there is empirical evidence that men get promoted at a quicker pace than women. The further up the ladder the higher the compensation, and there lay the challenge. This is why it is not just the salary that we should consider ? by calculating presumptive raises given over a 40-year career, women stand to lose $900,000 on across over a lifetime.
Research shows that when females have kids it negatively impacts their payroll potential. The so-named ∪Motherhood Penalty∩ leads to working mothers being perceived as less committed to their employment and requiring a more accommodating schedule. Statistics show that the pay gap is much higher for women with children.
Why payroll data can enhance visibility about gaps at your company
Whilst several issues add to pay inequities, one of the ways to handle it is by finding where the gaps are and then searching to repress the gap. Many employers are unaware that there exists is a difference. Part of the issue is lacking the information, a lack of knowledge around existing pay scales. In a 2020 report, we see that more than half (56%) of respondents claimed their organizations don∏t have an official process to fight pay equity, while 70% do not use salary structures to manage payroll.
To redress this data disparity, and as part of their offering for customers who are located in the UK, Immedis developed a robust report that plainly reveals the way an organization pays its employees based on gender and age.
From measuring the differential, organizations can make educated decisions regarding how to change and acquire payroll parity.
As well as the country by country analysis, Immedis also offer international data for Gross and Net payroll.
Why it∏s important to track data
Aside from the point that it∏s a legal mandate in the U.K., there is also the inherent bias we have towards tangible evidence.
In short, workers demand proof. Without https://immedis.com and robust analyzing, it is easy to assume that all is acceptable and that you are doing the right thing for your employees. With the data, companies can gain a better understanding of how they are paying their workers and if there are any obvious differences, that can be addressed.
