We are all now living with covid for almost a full 12 months. Mandatory lockdowns are no longer a novelty, plus the assumptions I may have had regarding why the global pandemic could affect females have been thoroughly kicked to the gutter. When we were first told to work from home, my initial reaction was one of hope. If then both caregivers, and obviously here I am referring to homes with two employed caregivers, were not leaving, then probably this would recalibrate the house work and childcare tasks? Which we would notice a change as now both obtained those chores upon themselves equally.
Well I was incorrect.
The covid-19 era nowhere near being a great equalizer has forced mothers not only out of the workplace but is also impacting them more substantially. As observed by the World Economic Forum∏s report Women in the Workplace 2020, at the end of 2020, millions of mothers were considering leaving the workplace for good.
Elsewhere, a UK publication observed that mothers are 1.5 times more likely than men to have either lost their job or quit since the pandemic began. Minorities and females of color are even more negatively affected. The publication states that ∪associated with females in the workforce, Latinas are more likely to be concerned about firings and furloughs. And LGBTQ+ females are almost twice as likely as workers overall to cite mental health as one of their largest challenges during the pandemic.∩
One of the primary issues for these harsh employment loss numbers? McKinsey∏s analysis found that women∏s employment are 1.8 times more at risk to the crisis than men∏s. A cause for this is that many females are employed in verticals gutted by covid-19. The hospitality industry employs more females than men.
It∏s not just in the economic area that females are suffering. Information from the United Nations reveals an upsurge in calls to domestic violence helplines around the planet.
Why payroll parity is more critical than ever
Yet, there is an additional issue at play here. Many times the primary reason the female is the one to give up her job is purely economic. Who makes more earnings? When both parties are employed, it is common sense for the person with the higher income to remain in their job and the other one to resign. Here is where the problem starts because, as we all are aware, the amount of earnings inequality is overwhelming.
Observing the most current information, in 2020, females earn only $0.81 for every dollar a man was paid. The controlled gender pay gap, that considers factors like job title, years of experience, industry, and location, uncovered that women make $0.98 for every $1 a man earns. While within this controlled data, the biggest gap is between the earnings of African American females and white males. As noted in the publication, African American females make $0.97 for every dollar a Caucasian man with the same qualifications is paid.
At first observation, this seems to show that the difference in earning power is generally low when you show like with like. But, it∏s more subtle than that, and that∏s 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 higher up the ladder the higher the compensation, and there lay the challenge. This is why it∏s not simply the salary that we should think about ? 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 women have children it adversely affects their earning potential. The so-named ∪Motherhood Penalty∩ leads to working mothers being thought of as less devoted to their employment and needing a more accommodating schedule. Statistics reveal that the pay gap is substantially higher for women with children.
How payroll analytics may raise visibility about gaps at your business
Whilst several factors contribute to pay inequities, one of the ways to control it is by finding where the gaps are and then searching to bridge the void. Several companies are not aware that there exists is a difference. A part of the problem is lacking the information, a lack of understanding regarding current pay scales. From a 2020 report, we know that more than half (56%) of those studied claimed their employers don∏t have a formal process to fight pay equity, whilst 70% do not use salary structures to manage pay.
To battle this information gap, and as part of their offering for customers who operate in the UK, Immedis created a robust report that clearly reveals the way a company pays its employees based on gender and age.
From analyzing the gap, organizations could make educated actions regarding how to change and get payroll parity.
As well as https://immedis.com by country data, Immedis also provide international comparisons for Gross and Net payroll.
Why it∏s important to study data
Aside from the point that it is a legal requirement in the United Kingdom, there is also the existing bias existing for tangible proof.
In short, workers demand proof. Without reports and robust visualizations, it∏s easy to take for granted that everything is acceptable and that you are doing right for your employees. From the data, companies can get a better understanding of how they are paying their employees and if there are any glaring differences, that can be addressed.
