We are all now living with covid for almost a full 12 months. Locking down is no longer a unique occurrence, and any assumptions many might have had about how the global pandemic would affect women have been soundly pushed to the gutter. When we were first told to work remotely, our initial thought was one of hope. If now both adults, and obviously then I am referring to households with two employed caregivers, weren∏t leaving, then surely this would reorient the household chores plus childcare tasks? Which we might see a change as now both took these chores upon themselves equally.
Was I wrong.
The pandemic nowhere near being a adequate equalizer has burdened women not merely out of the workplace but is also impacting them more substantially. As observed in https://immedis.com/blog/why-pay-equity-is-imperative-to-diversity-inclusion-and-belonging ∏s publication Women in the Workplace 2020, at year-end of 2020, tens of millions of females were pondering walking away from the workforce permanently.
Elsewhere, a British report observed that mothers are 1.5 times more likely than men to have either lost their employment or resign since the lockdown began. Minorities and females of color are even more highly impacted. The publication states that ∪compared with women in the workforce, Latinas are more likely to worry about layoffs and furloughs. Additionally LGBTQ+ women are nearly twice as likely as workers overall to observe mental wellness as one of their biggest challenges during the pandemic.∩
One of the main issues for these harsh employment loss numbers? McKinsey∏s analysis observed that women∏s jobs are 180% more at risk to the economic crisis than men∏s. One reason for this is that so many females are working in markets gutted by covid-19. The hospitality sector employs more females than men.
It is not just in the economic area that women are suffering. Studies from the United Nations shows an increase in calls to domestic violence helplines around the planet.
Why payroll parity is more critical than ever
Yet, there is another issue at work here. Often the main reason the female is the person to give up her employment is purely economic. Who earns more earnings? When both parties are working, it makes sense for the person with the higher earnings to remain at their job and the other person to resign. Here is where the problem starts because, as we all are aware, the level of earnings inequality is astounding.
Observing the most recent data, in 2020, women make only $0.81 for each dollar a man was paid. The controlled gender pay gap, which ponders factors such as job title, length of experience, vertical, and location, found that women earn $0.98 for every $1 a man earns. While inside this controlled information, the biggest gap is between the earnings of black women and Caucasian men. As disclosed in the report, African American women are paid $0.97 for every dollar a Caucasian man with equal qualifications is paid.
At initial glance, this seems to imply that the difference in earning power is generally low when you compare like with like. But, it is more nuanced than that, and that∏s why it requires our focus. While men and women on the same experience may receive similar compensation, the problem is that there is strong evidence that men get advanced at a faster pace than women. The higher up the ladder the higher the compensation, and herein lies the challenge. This is why it is not merely the salary that we should think about ? by calculating presumptive raises awarded over a 40-year employment, women stand to lose $900,000 on average over a lifetime.
Research shows that when women have children it negatively impacts their earning potential. The so-called ∪Motherhood Penalty∩ leads to employed mothers being thought of as less devoted to their employer and requiring a more accommodating schedule. Statistics reveal that the pay gap is substantially higher for women with children.
Why payroll data can raise awareness regarding gaps at your company
While numerous issues contribute to pay inequities, one of the manners to address it is by finding where the gaps are and then seeking to bridge the void. Several companies are unaware that there exists is a difference. A part of the issue is lacking the information, a lack of understanding around existing pay scales. In a 2020 report, we see that over half (56%) of those studied said their employers do not have a formal process to control pay equity, whilst 70% do not use payroll structures to manage pay.
To battle this information gap, and as part of their offering for customers who are located in the UK, Immedis developed a standard report that clearly reveals the way an organization pays its employees based on gender and age.
From measuring the issue, companies can make informed actions regarding how to change and acquire pay equity.
As well as the country by country analysis, Immedis also provide global data for Gross and Net payroll.
Why it∏s critical to track data
Apart from the fact that it∏s a lawful requirement in the U.K., there is also the existing bias existing for tangible proof.
In short, people demand proof. Without data and robust analyzing, it∏s easy to assume that all is fine and that you are doing right by your employees. From the information, companies can gain a better understanding of how they are paying their employees and if there are any glaring differences, which they can then address.
