Gender Pay Gap: The Impact and Influence of Company Policies

We will explore the compelling mechanisms of organizations that are advocates for gender equity, along with further research on how company policies can slash the gender pay gap. I will explore the foundational principles that guide these entities, particularly their commitment to slashing the gender pay gap, and the strategies they employ to ensure pay parity across genders.

What are the foundational principles of gender equity?

The bedrock of any organization striving for gender equity should be a deep-seated belief in the concept itself. This belief forms the basis for the development and implementation of policies that promote gender equity.

To bridge the gender pay gap, organizations must take several proactive steps. These include implementing fair pay policies, conducting regular pay audits, and educating all stakeholders about the importance of pay equity. As our interviewee, C. Nicole Mason, points out, “Women of color lose more than 1 million dollars to the pay gap over their careers. To ensure pay equity across gender and other markers of difference, such as race, employers should conduct an annual review of their compensation policy, pay scale, and position descriptions to ensure they are fair and equitable.”

As we delve into the foundational principles of gender equity, we are reminded of the importance of a deep-seated belief in the concept itself. This belief forms the basis for the development and implementation of policies that promote gender equity. The proactive steps taken by organizations, such as implementing fair pay policies, conducting regular pay audits, and educating all stakeholders about the importance of pay equity, are crucial in bridging the gender pay gap. 

What policies reduce the gender pay gap?

Organizations should implement specific policies aimed at reducing the gender pay gap. These policies should be designed to ensure that all employees, regardless of their gender, are compensated fairly for their work.

Promotions and raises should be handled to ensure equal access to these opportunities for all employees, regardless of gender. As Nicole suggests, “Promotions and raises should be linked to performance and occur annually. Key performance metrics and a strong evaluation tool are also critical components of ensuring promotions and raises are equitable and fair.”

The conversation around gender pay equity is far from over. What other innovative approaches can be integrated into our existing policies? How can we further refine these strategies to ensure they are effective in a variety of organizational contexts?

What are some instances of equal pay parity?

• Adobe Systems Incorporated – a multinational software company, has made significant strides in promoting pay equity. As of October 2018, the company has successfully achieved equal pay for men and women globally. Furthermore, they have also ensured pay equality between underrepresented minorities and non-underrepresented minorities in the United States as of September 2020. This commitment to pay parity has been maintained throughout the fiscal year 2022, demonstrating Adobe’s dedication to fostering a diverse and inclusive work environment.

• NVIDIA – a renowned tech company, has been steadfast in its pursuit of pay equality over the years. They have made concerted efforts to increase the recruitment of women and individuals from underrepresented groups in the tech industry, and have been vigilant in monitoring their progress and making necessary adjustments. NVIDIA’s commitment extends beyond pay equality, with initiatives such as the CARE Allyship Program that educates their employees on the importance of diversity and inclusion and encourages them to support the success of others. 

What are the challenges and solutions for the gender pay gap in America?

The journey towards achieving pay equity is not without its challenges. However, these challenges can be overcome through a combination of policy changes, education, and a commitment to transparency. Nicole shares, “The biggest obstacle or challenge I see with companies on their journey towards pay equity is a reluctance to examine their pay policy or compensation packages because of the fear of what they might discover during the review.”

For entities striving to reduce the gender pay gap, Mason offers valuable advice: “The biggest piece of advice is to get started and be curious about the gender pay gap at your company or organization. Gather the data, speak with employees, and interview peer organizations. This information is invaluable and will help to inform your company’s strategy and approach to pay equity.”

The path to pay equity is indeed a challenging one, fraught with obstacles and fears. Yet, as Mason emphasizes, the first step is to confront these challenges head-on, armed with curiosity and a willingness to learn. By gathering research data, engaging in open conversations, and learning from others. This proactive approach not only illuminates the path towards pay equity but also fosters a culture of transparency and fairness. It is through this journey of discovery and action that we can hope to close the gender pay gap and ensure equal pay for all.

Interview responses provided by: 

Dr. C. Nicole Mason (Author, Racial & Gender Equity Advocate, Poverty & Economic Security Expert)